Bayern boss Hoeneß steps down – for now

Uli Hoeneß is set to announce on Monday that he will temporarily resign as Bayern Munich president after the Champions League final until the investigation into his tax affairs is concluded, according to a report.

Bayern boss Hoeneß steps down - for now
Photo: DPA

The 61-year-old has come under pressure to quit after reports that he was arrested on March 20, then released on bail for €5 million euros as part of an investigation into unpaid taxes.

According to magazine Der Spiegel, Hoeneß will make his announcement at Monday’s executive board meeting.

The report claims, the Bayern board, which contains several major figures in German industry, had wanted Hoeneß to resign permanently as president before the Champions League final against rivals Borussia Dortmund at Wembley on May 25th.

But after last Wednesday’s 3-0 victory in Barcelona gave Bayern a 7-0 semi-final win on aggregate, the fans’ euphoria forced the board into a change of heart and Hoeneß will be allowed to stay in office until the final.

In an interview last week with German newspaper Die Zeit, Hoeneß had ruled out resigning before the European final, but admitted he was “in hell” due to the tax evasion allegations.

Reports first broke on April 20 that Hoeneß had substantial sums of cash in a Swiss account and had failed to pay millions of euros in tax on the interest.

The revelations sparked huge controversy in election-year Germany, which is looking to crack down on tax evasion, and even German Chancellor Angela Merkel admitted she was “disappointed” in Hoeneß’ conduct.


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Germany and France extend Covid tax breaks for cross-border workers

Germany and France have agreed to extend the relaxation of tax rules for cross-border workers until the end of the year.

Cross-border workers commute by car but they can for now continue to work at home
Cross-border workers usually have to commute but can for now continue to work at home.. Photo: Fabrice Coffrini / AFP

The agreements between France and the governments of Belgium, Luxembourg, Germany, Switzerland and Italy avoids double taxation issues for anyone travelling across the French border to or from those countries in order to work.

During the pandemic, tax rules were eased to allow French cross-border employees, like their counterparts in Belgium, Luxembourg, Germany, Switzerland and Italy, to work from home without having to change their tax status.

The deals, which were established at the beginning of the health crisis in March 2020, were due to end on September 30th – and would have plunged cross-border workers still working from home because of the health crisis into renewed uncertainty over their taxes.

The latest extension of these agreements means there’s no confusion over where a cross-border worker pays their taxes until December 31st – for example cross-border workers who work in Geneva but live in France, who normally pay their taxes and social security contributions in Switzerland. 

Under normal circumstances, anyone living in France who works in Switzerland can spend no more than 25 percent of their time working from home. If they exceed this time limit, they would have to pay these tax charges tin France rather than in Switzerland, which would be much higher.

The agreements between France and Belgium, Luxembourg, Germany and Switzerland “provide that days worked at home because of the recommendations and health instructions related to the Covid-19 pandemic may … be considered as days worked in the state where [workers] usually carry out their activity and therefore remain taxable,” according to the statement from the French Employment Ministry.

In the case of Luxembourg, days worked from home because of the health crisis are not counted in usual the 29 day limit.