The German Finance Minister Wolfgang Schaeuble refuted the criticisms against him declaring that took too long to ban the practice that allowed two entities claiming to have belonged to the ownership of shares or other securities or estimated cost German euro government billions in lost income taxes.
This window, under which both entities could claim tax exemptions, closed in 2012. Disclosing this practice of brokers sparked outrage in the German public and embarrassed him Schaeuble, who often lectures on governments of other states the need to curb tax evasion.
On the issue continues to investigate a committee of the federal parliament of Germany and Schauble, who became finance minister in late 2009, he testified before the earlier date.
Wolfgang Schaeuble argues that informed this loophole few months after he took over the ministry. In mid-2010, he decided to open the closure, but the process took too much time in the same. In addition, banks needed time to adjust to the new rules and changes were implemented only in January 2012.
The scandal has at its core policies of "shorting" selling borrowed shares. A bank could lend shares so that both itself and the buyer to appear as legitimate holders of both. This allowed both parties to ensure reimbursement of taxes on stock dividends.
The Schaeuble also defended the regulatory control of financial institution, the BaFin. "It is the responsibility of BaFin to monitor the implementation of tax laws," he said, adding that his mission is to ensure the solvency of banks and the stability of the financial system.
