On Friday 7 February 2020, The Tax Institute’s Senior Tax Counsel: Bob Deutsch, published his weekly Report in the Institute’s TaxVine (#4), entitled “CUM-EX TRADES: Immoral, illegal or none of the above?”. This is an article about an EU problem of shareholders getting a double refund of underlying tax, from 2006 to 2011, worth the euro equivalent of $A90 billion. It sounds a lot like the Australian equivalent of getting a second franking credit, by trading cum-div in the 2 day trading window after the ‘dividend closing date’ – that was closed down by anti-dividend stripping franking credit rules.
See below for the article.
