Former VW boss in tax probe

Source: Xinhua | 2018-07-30

German prosecutors are investigating former Volkswagen boss Martin Winterkorn over suspicion that he may have evaded taxes, Sunday newspaper Bild am Sonntag reported.

Winterkorn was already in the sights of investigators looking at whether he failed to inform investors promptly about Volkswagen’s emissions cheating scandal.

But the paper reported yesterday that the former VW boss may face further legal woes.

Citing investigation documents, the newspaper said Winterkorn transferred around 10 million euros (US$11.7 million) to Swiss bank accounts over 2016 and 2017. Part of the sum may have incurred unpaid taxes, it added.

The claim was rejected by Winterkorn’s lawyer Felix Doerr, who told Bild am Sonntag it was Winterkorn’s “personal decision how and by whom he wants his assets to be managed.” He added that the procedure was “free from any tax claim.”

According to the report, Winterkorn had transferred huge sums to his tax adviser’s account. From there, the funds were sent on to Swiss accounts, including one held by Winterkorn’s wife.

Prosecutors suspect Winterkorn may be building a stash in Switzerland in case he is found liable for damages to Volkswagen over the pollution cheating scandal.