The number of individuals and firms under investigation in Germany's cum-ex tax scandal has risen from around 400 to more than 800 over an eight-month period, according to a new court filing.

The figure pertains to 68 preliminary proceedings in the ongoing cum-ex scandal, which started when a number of organisations were alleged to have claimed twice on tax rebates, costing Germany around €5 billion.

According to German newspaper Handelsblatt, in response to the growing number of cases and the fear that some will fall outside the statutory limitation period, German Finance Minister Olaf Scholz said he planned to extend the statute of limitations on particularly serious tax evasion from currently 20 to 25 years.

The investigations in the cum-ex cases in North Rhine-Westphalia have been bundled at the Cologne public prosecutor's office.

In March, a German court ruled that the tax evasion scheme was a criminal matter.  The court previously stated that the tax evasion scheme was not permitted under German tax law, but it had not ruled on the question of whether it was a criminal matter. However, March's ruling delivered a decisive blow to the defendants in the case.

The scandal has since plunged a number of major law firms into suspicion of misconduct and criminal wrongdoing, including Freshfields Bruckhaus Deringer, whose global head of tax, Ulf Johannemann, was arrested last November for his alleged involvement. The firm has since set up an ethics committee to demonstrate "its commitment to the ethical practice of law".

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Freshfields Sets Up Ethics Committee in Germany Amid Cum-Ex Scandal