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Let the heads roll - giant tax evasion scandal in Germany

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  • Let the heads roll - giant tax evasion scandal in Germany

    Dunno if anyone outside Hermania is following this, but it makes currently huge headlines here:

    Deutsche Post boss Klaus Zumwinkel, who is under investigation for tax evasion, has offered to quit.

    Deutsche Post's executive committee has called on the board to accept his resignation, which German Chancellor Angela Merkel described as unavoidable.

    The German government is a major shareholder in Deutsche Post, which also owns the global delivery firm DHL.

    Germany is cracking down on wealthy businessmen using offshore bank accounts to escape taxes.

    Hundreds more Germans face being investigated for tax evasion.

    "In a large number of cases, key personalities from our country sought to avoid their duty of solidarity via taxation by practising fiscal evasion to Liechtenstein," a finance ministry spokesman said.

    Deutsche Post said on its web site that it was in the interest of the company for Mr Zumwinkel to resign.

    'Morale damaged'

    Peer Steinbrueck, the German Finance Minister, said the scandal had damaged public morale.

    Sign outside Deutsche Post's headquarters
    Deutsche Post has a market share of nearly 90%

    "If the public has something like this as a role model then they'll start having doubts about this economic and social system. I didn't think this was possible."

    On Thursday, the Deutsche Post boss was questioned by police and his home and office were raided.

    Prosecutors suspect that he avoided paying 1m euros (£750,000; $1.4m) in taxes using banks in Lichtenstein.

    He has not yet made a public statement about the allegations.

    John Allan, the British finance director at Deutsche Post, has been tipped by some analysts as a likely successor.

    Reputation soured

    Mr Zumwinkel, 63, is one of Germany's most influential business figures, credited with transforming the postal service into a logistics giant, as well as developing its retail banking arm, Postbank.

    He has been chief executive of Deutsche Post for 18 years.

    He is one of the longest-serving chief executives of a German blue chip company and also heads the supervisory board of Deutsche Telekom.

    But he is no stranger to controversy.

    He sold about 5m euros worth of shares after the introduction of the minimum wage for postal workers - which he fought for - boosted the company's share price.
    BBC, News, BBC News, news online, world, uk, international, foreign, british, online, service


    The article doesn't really capture the attention this is getting here right now. It's not only about the Post guy anymore, currently there's lots of specualtion who the other high profile people could be.
    Blah

  • #2
    A tax evasion scandal just isn't any fun.

    You need a good sex scandal.
    "I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
    "I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark Twain

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    • #3
      I agree, stupid rich people, don't provide much entertainment
      Blah

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      • #4
        Isn't Lichtenstein part of the EU? Doesn't every EU citizen have a right to to live in any other EU state (baring a few recently joined members)? If someone wants to declare Lichtenstein their residence then that would be perfectly legal wouldn't it?
        Try http://wordforge.net/index.php for discussion and debate.

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        • #5
          Originally posted by Oerdin
          Isn't Lichtenstein part of the EU? Doesn't every EU citizen have a right to to live in any other EU state (baring a few recently joined members)? If someone wants to declare Lichtenstein their residence then that would be perfectly legal wouldn't it?
          I'm not a legal expert, but as I understand it, you have freedom of movement througout the EU members, and so can live anywhere you want, but national citizenship is still in place, so changing the the place to live doesn't make you automatically a citizen of the state you have chosen to live in. For that you still have to get a new citizenship.

          edit: oh, and I just looked, Luxemburg is listed as EU member, but not Liechtenstein, which is however closely related to the EU and participates for example in the common market.
          Last edited by BeBMan; February 16, 2008, 12:16.
          Blah

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          • #6
            I don't think they'd have to change their citizenship just their location of residence. Big difference.
            Try http://wordforge.net/index.php for discussion and debate.

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            • #7
              Yeah, but that would imply you actually live there. I didn't read the whole article (money scandals bore me) but if they lived in Germany and declared elsewhere...
              "I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
              "I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark Twain

              Comment


              • #8
                GWB (and his father for that matter) declare in Texas but live in DC. Every service member declares for their chosen home state even if they, say, live in Germany for years.
                Try http://wordforge.net/index.php for discussion and debate.

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                • #9
                  Yeah, they should be paying their taxes like everyone else has to...it seems that the more people earn, the more means of getting out of paying their dues they have...
                  Speaking of Erith:

                  "It's not twinned with anywhere, but it does have a suicide pact with Dagenham" - Linda Smith

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                  • #10
                    Originally posted by Oerdin
                    GWB (and his father for that matter) declare in Texas but live in DC. Every service member declares for their chosen home state even if they, say, live in Germany for years.
                    GWB and father are at least in the same country. Perhaps their trips to the ranch allow them to claim Texas (see my note below).

                    Service members have a legit excuse for not residing at "home" don't you think? Or would it be preferable for them to pay their taxes to the host country?

                    I'm not a tax expert but my understanding is that residency does actually imply residing in the place for some period of time. ie. X number of weeks per year.
                    "I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
                    "I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark Twain

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                    • #11
                      It's avoision, not evasion.
                      Unbelievable!

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                      • #12
                        Originally posted by Oerdin
                        GWB (and his father for that matter) declare in Texas but live in DC. Every service member declares for their chosen home state even if they, say, live in Germany for years.
                        I do not know specifically for Lichtenstein, but most of the low-tax states in Europe (Andorra, Luxembourg, and the like) force you to live some months in them in order to be able to get residency in these countries.
                        Trying to rehabilitateh and contribuing again to the civ-community

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                        • #13
                          Out of curiosity, what is the tax rate in Germany?
                          I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
                          For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator Rubio

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                          • #14
                            "The taxes haven't been evaded, they haven't even been avoided, they just haven't been paid" - Terry Pratchett
                            You just wasted six ... no, seven ... seconds of your life reading this sentence.

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                            • #15
                              Originally posted by Oerdin
                              GWB (and his father for that matter) declare in Texas but live in DC. Every service member declares for their chosen home state even if they, say, live in Germany for years.
                              Both of those are rather special cases.

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