DPWN’s ex-CEO pleads guilty to €1m tax evasion

By on Jan 23, 2009

How the mighty are fallen: Klaus Zumwinkel has pleaded guilty to charges of tax evasion to the tune of around €1 million Sharon Gill reports

Deutsche Post World Net's ex-CEO, who resigned hastily when details of his alleged tax fraud were made public in February last year, was charged with six counts of evading almost €12 million in taxes between 2001 and 2006

The court applied the statute of limitations and dismissed the charges relating to the year 2001

Zumwinkel was arrested last year after a disgruntled bank employee gave a disk containing bank account details to the German government in return for an undisclosed "informant fee" Zumwinkel was accused of transferring large sums of money into a foundation he created in Liechtenstein to avoid paying tax

Zumwinkel was just one of many to be investigated by the authorities, and according to Reuters, around 400 wealthy Germans came forward and admitted tax evasion activities in an effort to mitigate the consequences

During his trial, Zumwinkel confessed to tax fraud, saying he regretted his actions and has now paid all taxes due

The court is expected to deliver its verdict on Monday January 26th

According to Bloomberg, Zumwinkel may avoid jail time and be eligible for a suspended sentence under German law, since the fraud was less than €1 million