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Total payments of approximately €450 million at the former Com Group have been determined to be non-deductible, resulting in a tax charge of €179 million. Of this amount, €168 million has already been recorded in the company’s consolidated financial statements for fiscal 2006 for questionable payments of approximately €420 million.
“Today’s decisions are important steps in clarifying and coming to terms with the misconduct which occurred in the past. Siemens accepts full responsibility in this matter. We have no tolerance for illegal conduct, and we respond to violations with clear consequences. We will continue to strengthen Compliance as a key element of Siemens’ corporate and leadership culture,” noted Siemens President and CEO Peter Löscher.
Today’s decision by Munich District Court (I) and the settlement with the tax authorities conclude the German investigations into illegal conduct and tax violations at Siemens’ former Com Group as they relate to Siemens AG. The German tax authorities have based the settlement on the results of investigations conducted jointly with the public prosecutors. Siemens accepts the fine imposed by the court, and takes responsibility for past misconduct at the Com Group. The company has waived its right to appeal.
The comprehensive independent investigation being conducted by the law firm Debevoise and Plimpton continues. Siemens is committed to clarify all related matters – also in the company’s other Groups – and continues to support the work of the authorities. The company is also further strengthening its compliance measures and internal control systems.-Siemens
Posted October 4th, 2007 by harminka
