Ulf Johannemann, the former Global Head of Tax at the renowned law firm Freshfields, received a three and a half year prison sentence from a German court following his involvement in a fraudulent tax scheme.
Johannemann’s indictment stems from questionable tax advice he provided to Maple Bank, his client. He orchestrated a ploy allowing the company to demand a tax credit they hadn’t given. Prosecutors informed that Johannemann’s counsel lent an incorrect veneer of legality to the action. Detailed information about the scam’s operation can be found in Roll on Friday’s report.
The notorious Cum-Ex tax-dodge, signed by Johannemann, facilitated Maple Bank in reclaiming an astounding EUR 383 million in taxes it never paid off. It was only when the German authorities declared the scheme illegal and shut down Maple Bank’s German arm that the backfire occurred. In response, the bank’s administrators initiated a lawsuit against the law firm resulting in Freshfields paying EUR 50 million to settle the claim. To forestall any prosecution tied to its advice to Maple Bank, Freshfields voluntarily paid an additional EUR 10 million to the German tax authority in 2021.
Following the fiasco and shortly before his arrest in 2019, Johannemann consequently parted ways with the law firm. Freshfields, in response to the former partner’s indictment, chose not to comment on the case outcome but revealed their ongoing cooperation with the authorities in order to rectify the situation and learn from the experience.
Johannemann has the right to appeal the verdict and it remains to be seen whether he will exercise that right or not.
For a more in-depth examination of the case, read the original article from Above The Law.