Porsche SE: 40 million euros due to tax offense, proceedings against Uwe Hück suspended

Once one of the most powerful works councils in Germany:

The investigations against Porsche's former works council boss Uwe Hück have been discontinued.

Nevertheless, the car manufacturer pays a fine of 40 million euros for tax offenses

Photo: Felix Kaestle / AP

Uwe Hück

(59)

was a powerful man in Stuttgart. He headed the Porsche works council for 22 years. He spoke to major shareholder

Wolfgang Porsche

(76), called board members late in the evening and dictated what they had to do in the next few days. Then he suddenly resigned on February 4, 2019. Officially to campaign for the SPD. But it quickly became clear that there was more to it than that.

Now, more than two and a half years later, the public prosecutor's office has closed the case against Hück - and has also ended further investigations against Porsche. The Stuttgart public prosecutor announced on Wednesday. Hück has to pay a mid six-digit amount to charitable organizations because he used works council money for private purposes. The Porsche company has to pay a total of 40 million euros because it posted incomplete or incorrect tax information in the years 2009 to 2016. This at least made it easier for employees to reduce their taxes, which in turn benefited the car manufacturer.

This brings an end to a story at Porsche that was uncomfortable for many people involved. In his 22 years as head of the works council, Hück had built up a unique position of power. After his departure, there were a number of allegations, all of which told the story of a workers' leader who was aloof: Hück appointed an elected and released works council as his driver for a good ten years. The chauffeur was not contractually entitled to him. The works council chairman paid too little when he used the company's rooms and catering for private receptions; Accordingly, he did not pay tax on the pecuniary benefits or paid too little tax. The list of allegations was long; Hück was unable to clear all of them.

The public prosecutor's office has now investigated two issues.

On the one hand, there was the question of whether Porsche paid the works council chairman an inadmissible remuneration under the works constitution.

The proceedings were discontinued because the allegation "was not confirmed with sufficient certainty to bring charges", according to the public prosecutor.

Porsche accepts the fine

In addition, there was a suspicion that Hück used funds from the works council for private purposes in the period from 2013 to 2018 - to the knowledge of Porsche board members. Investigations against four current and former board members have now ended because of minor guilt. You don't have to pay any additional money. The investigations against Hück were also ended against a monetary requirement, since evidence of the crime was not to be kept and the public interest in the prosecution was eliminated with a payment to a charitable organization, it said.

According to the announcement, the penalty against Porsche itself is divided into two parts: 9.9 million euros in fines were imposed for the administrative offense committed, 30.1 million euros had to be paid for the economic benefits. There was also a fine proceeding on suspicion of breach of duty of supervision against six current and former board members of the Volkswagen subsidiary. This has been discontinued. "Although the investigations revealed specific violations at the working level of Porsche AG; however, individual responsibility for the violation of supervisory duties could not be established," said the public prosecutor.

According to its own statements, Porsche accepted the fine and waived legal remedies. The prosecution announced that the proceedings were legally concluded.