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CRIME

Bayern’s Hoeneß said to hide cash in Swiss bank

The president of German football club Bayern Munich, Uli Hoeneß, may have hidden more than €10 million ($13 million) from tax authorities, according to a Sunday media report.

Bayern's Hoeneß said to hide cash in Swiss bank
Photo:DPA

Hoeneß, 61, revealed to Focus news weekly that he had voluntarily disclosed a Swiss bank account in January and is working closely with investigators on a tax evasion probe.

The football legend and prosecutors have declined to divulge the sums involved but Bild am Sonntag reported without citing its sources that Hoeneß had already paid nearly €6 million in back taxes.

The head of the German tax union, Thomas Eigenthaler, said that based on that sum, Hoeneß had likely hidden at least €10 million in income.

Hoeneß, who also draws income from a sausage company he co-founded, told Focus that he had originally planned to come forward after a planned German-Swiss tax accord came into effect, which would have allowed him to settle the matter anonymously with a one-off payment.

But the centre-left opposition torpedoed the measure late last year on the grounds that it unfairly offered criminal amnesty to tax dodgers.

Five months ahead of a general election, the opposition Social Democrats leapt on the high-profile case as proving their point about the flaws in the mooted Swiss tax pact.

“Once again we are so surprised when a prominent case of tax evasion comes to light,” SPD general secretary Andrea Nahles said in a statement.

“These cases are bad enough for the social cohesion of our country. But it is much worse when this behaviour is sanctioned by political leaders.”

However Philipp Rösler, leader of the pro-business Free Democrats, junior partners in Chancellor Angela Merkel’s ruling coalition, told Monday’s Bild newspaper that Berlin aimed to take a firm line against tax cheats and that without the accord with Switzerland, many cases would go undetected.

Although Switzerland has recently cracked down on undeclared funds in a bid to clear its reputation as a tax haven, it has so far doggedly refused to consider lifting its banking secrecy practices.

Bayern host Barcelona in the Champions League semi-final, first leg on Tuesday as the German champions bid to reach their third European Cup final in four years.

Bayern coach Jupp Heynckes played down the impact of the tax affair on the club.

“It’s a private matter for the president. There are often stories of this nature, especially in the Munich media, but it is of absolutely no interest to my team,” Heynckes said Saturday.

AFP/The Local/kkf

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MONEY

Unemployment benefits cut for almost 16,000 in Germany who refused work

The standard unemployment benefit rate paid to job seekers in Germany was reduced in 2023 for almost 16,000 people who rejected job offers or training.

Unemployment benefits cut for almost 16,000 in Germany who refused work

Job centres reduced the citizen’s benefit (Bürgergeld) rate last year for 15,777 people who either rejected job offers or did not want to accept or continue work or training, Germany’s editorial network RND reported on Saturday, citing a report from the Federal Employment Agency (Bundesagentur für Arbeit). 

Around 5.5 million people in Germany receive this benefit and some 3.9 million of these are considered employable. That means that the standard rate was reduced for around 0.4 percent of employable citizen’s benefit recipients.

In January, the German government gave the green light for tightening these benefits: job centres should be able to completely cancel Bürgergeld for unemployed people for a maximum of two months if those job seekers consistently refuse to take up work.

READ ALSO: How generous is Germany’s unemployment benefit system?

Since the German Employment Agency data dates back to December, these benefit cuts are based on the previous law. With the introduction of the new law, the standard rate will probably be reduced completely for fewer people.

“The limits are much narrower,” a spokesperson for the Federal Employment Agency told the RND.

The managing director of the German Parity Welfare Association Ulrich Schneider, criticised the “show politics” of the coalition government.

Speaking to the RND, he said that they wanted to play workers off against workers. “The figures show that there are almost no total objectors.”

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