Deutsche Post boss in tax probe

[Sandyman]

http://news.bbc.co.uk/1/hi/business/7245075.stm

Deutsche Post boss in tax probe

The chief executive of Deutsche Post, the firm that owns global delivery firm DHL, has been quizzed by police over suspected tax evasion.
Klaus Zumwinkel had his home and office raided by investigators and was questioned before being bailed.

Prosecutors said he was suspected of not paying 1m euros (£750,000; $1.4m) in taxes using banks in Lichtenstein.

Mr Zumwinkel is one of Germany's most influential business figures, having headed Deutsche Post for 18 years.

A company spokeswoman confirmed that an investigation into its chief executive had been launched but did not specify what it was about.

Criticism

Mr Zumwinkel has led Deutsche Post since 1990 and oversaw its flotation in 2000.

As Mr Zumwinkel is approaching retirement age, many analysts do not expect him to have his contract renewed when it expires later this year.

And a spokesman for the Social Democrats, who form part of Germany's governing coalition, said that if Mr Zumwinkel was found to guilty, he should "not hold his job for one minute longer".

"It is beyond comprehension that a multimillionaire like Zumwinkel found it necessary to save a couple of million euros in this way," Rainer Wend told Der Spiegel magazine.

The Deutsche Post boss has been praised for helping transform the firm into a logistics giant, as well as developing its retail banking arm, Postbank.

However, he has been criticised for selling about 5m euros worth of shares after having forced through the minimum wage for postal workers - something which bolstered the company's share price.

He has other business roles, including leading Deutsche Telekom's supervisory board.


I do hope :cfo & :lfo are paying the correct taxes on their inflated earnings......

[TrueBlueTerrier]

Strange how these things happen in tandem. Isn't one of our Leaders being "tasked" by Walmart for confusion over a tax bill of around £600,000.

[TrueBlueTerrier]

Corrections its Asda: Following story from Jan 2007

http://www.guardian.co.uk/business/2007 ... rkets.asda

Supermarket chain Asda is threatening legal action in a bid to recover £600,000 it claims to have mistakenly paid on behalf of a former chief executive, it was reported today.

The Financial Times said the company has embarked on High Court action against ex-boss Allan Leighton to claw back money paid to the Inland Revenue.

It is thought Asda wants back the money which it paid in tax on his share options when the now Royal Mail and Bhs chairman left the firm in 2000.

The Wal-Mart owned retailer told the newspaper it had issued a claim against Mr Leighton after exhausting "every other option", although the order is not yet thought to have been officially served.

It said: "We simply can't say goodbye to £600,000 - the thousands of colleagues working in our stores would expect us to do nothing less."

The dispute is reported to have begun when Mr Leighton cashed in his shares in November 2000. The supermarket claims it failed to deduct the tax due on the options.

Neither Asda or Mr Leighton were available for comment this morning. But it is believed similar mistakes were made with other former executives and the company was forced to foot the bill to the Inland Revenue.

However, the FT said today that it is understood Mr Leighton believes he paid the tax bill himself and the matter is being considered by lawyers.

Mr Leighton began his career in 1974 as a salesman for Mars Confectionery.

After holding a range of posts in the Mars group, he joined Asda as group marketing director in 1992.

In 1996 he was appointed chief executive and following the takeover of Asda by the American company Wal-Mart he became the president and chief executive of Wal-Mart Europe in 1999.

Asda accounts for around half of Wal-Mart's foreign sales and close to a 10th of total revenue.

In the three months to October 31, Wal-Mart posted net income of $2.65bn (£1.4bn) compared with $2.37bn (£1.24bn) a year earlier.