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Six jailed in €300 million tax evasion scheme

The Local · 22 Dec 2011, 06:30

Published: 22 Dec 2011 06:30 GMT+01:00

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Three Britons, two Germans and a Frenchman were handed prison terms of between three years and seven years and 10 months by the court in the western city of Frankfurt.

The court found the six company managers, aged 27 to 66, guilty of evading about €300 million ($400 million) in taxes in Germany on carbon permits which had been bought abroad.

By buying the permits overseas, they were not required to pay tax. They then resold them in Germany, before selling them on again abroad to avoid the tax authorities, the court ruled.

Under a European Union trading system, limits are placed on the amount of carbon dioxide companies may emit and those that pollute less are free to sell credits to companies that need more.

The evasion, which lasted from September 2009 until April 2010, "cost the German tax office about €300 million," judge Martin Bach said.

"An important instrument of environmental policy has been hijacked to become an instrument of personal enrichment," he said.

The illegal activity was carried out through Deutsche Bank where seven staff members are still under investigation.

A Deutsche Bank spokesman said however that "an internal inquiry ... found no indication suggesting involvement of employees of the bank."

Story continues below…

The bank decided in October it would temporarily forgo €310 million in tax deductions accumulated in the case although the judge asked the bank to give up the amount definitively


The Local (news@thelocal.de)

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Your comments about this article

08:35 December 22, 2011 by freechoice
this is just tip of the iceberg. how could german corporations be so rich and the german govt. broke? something must be fishy going on around here!
10:24 December 22, 2011 by The-ex-pat
Evade tax, go down for seven years, have sex with your daughter for 40 years of kick someone to death on the U-Bahn and you get a slapped wrist...........
16:10 December 29, 2011 by raandy
internal inquiry found no suggestion that D Bank employee was involved, does this mean they did not notice , they were not employees even though this was thru the bank, they did this after hours?
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