European Authority Calls for More Robust Tax Information Exchange to Counter Withholding Tax Fraud

                On September 23, 2020, the European Securities and Market Authority (ESMA) issued a report, calling for more robust exchange of information on request to counter the increasing amount of alleged large-scale tax fraud schemes known as “Cum/Ex.”  ESMA’s report responded to the Resolution 2018/2900 (RSP) adopted on November 29, 2018 by the European Parliament, requesting ESMA to perform a study into dividend arbitrage, Cum/Ex and Cum/Cum schemes.[1]