A warrant has been issued in Germany for the arrest of Peter Kaindl, the managing director and co-owner of the Austrian wood-based panel manufacturer Kronospan, who is the subject of a tax probe.
The senior prosecutor for the court in the town of Bielefeld, Burkhard Dannewald, says Mr Kaindl is wanted for questioning on 27 counts of tax evasion. Mr Dannewald says the amount involved is between euro20-25m.
The investigation centres on payments for allegedly useless patents which falsely reduced the profits of the company between 1998 and 2001.
Two other Kronospan employees are also alleged to be involved in the tax evasion.
Mr Dannewald said: “We have not talked to Mr Kaindl yet and we have no idea where he is – but if he were in Germany he would be in jail.”
Chris Ryan, company secretary at Kronospan UK, Chirk, confirmed that a tax investigation is being carried out in Germany. He said: “We understand from press reports that a warrant has been issued in Germany, but the prosecutor has not been able to present this to company lawyers.
“Because the investigation is not yet complete, the company does not feel that it is appropriate to comment upon the contents of it, but expects that all charges will be successfully refuted in due course and the charges withdrawn.
“Kronospan’s UK operations have no involvement as the companies are legally totally independent.”
