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IFPI Switzerland caught up in tax fraud allegations
By CMU Editorial | Published on Friday 8 July 2011
The Swiss branch of the International Federation Of The Phonographic Industry is busy distancing itself from its former CEO, according to various reports online, after allegations he abused his position in the trade body to gain tax breaks for his own company IPGate.
According to TorrentFreak, and German journalist Christian BŸtikofer, former IFPI Switzerland boss Beat Hšgger employed two administrators at the Swiss trade body through his own German company, so to qualify IPGate for concessions under Germany’s tax system on the basis he had a Swiss operation. BŸtikofer claims this benefited Hšgger’s company to the tune of 316,500 euros.
IFPI Switzerland seemingly outsourced a lot of its operations to Hšgger’s company, something which is possibly questionable in itself, though the tax dimension has moved this story onto a higher level, leading to Hšgger’s resignation from the trade body, and the group’s board distancing itself from his past actions, even though, BŸtikofer argues, some board members sanctioned them.
All agreements between IFPI and IPGate have now been cancelled following Hšgger’s departure, though the tax investigations into past arrangements are reportedly ongoing.
