Judge Pablo Ruz suspects there may have been tax fraud in Pescanova's management. (Photo: Stock File)
Tax fraud suspicion in Pescanova’s management
SPAIN
Friday, October 11, 2013, 00:40 (GMT + 9)
The judge of the Court N° 5 of the National Court on the case opened for the Galician multinational firm Pescanova’s management has suspicions that there could have been tax fraud.
This implies that the company’s former executives are not only facing allegations of accounting fake, use of relevant information and fraud, but also the possibility of being prosecuted for tax fraud.
On 3 October, a writ was issued in which the judge Pablo Ruz orders the Tax Agency to provide information on the statement of income and payments "as soon as possible," and the statement on information about the operations under the books for the years 2012 and 2013 for a total of 13 legal entities.
It is the companies that belong to Pescanova’s group: Frinova, Pescafresca, Pescanova Alimentación (Boapesca), Frivipesca Chapela, Frigodis, Bajamar Séptima (Ultracongelados Antárctida), Novapesca Trading, Insuiña, Pescafina, Pescafian Bacalao, Fricata Mar and Hasenosa, La Voz de Galicia reported.
Besides, Ruz placed an order to Pescanova for the firm to report to the Economic and Prosecutor Unit of the National Police on all factoring contracts (a short-term financing tool) signed with the banks as well as their description and the people involved.
Furthermore, it became known that the Court has admitted the complaint filed by Cartesian Capital Group against BDO, the auditing firm of the accounts of the multinational firm for hiding a debt for EUR 1,667 million.
The board of Pescanova has been scheduled to reconvene next Friday. During the meeting, issues such as the draft plan of viability of the company that is being prepared by PwC are to be analysed with the reorganisation administrator Deloitte.
Meanwhile, the firm Yvancos & Abogados will ask for the detention of those accused in the case opened for Pescanova’s management to be decreed.
This group of lawyers represents several minority shareholders that form the Affected Platform of Pescanova, the agency Europa Press reported.
The firm argues that with the reports of KPMG and Deloitte, "accounting irregularities and planned moves are proven, such as the use of subsidiaries as special purpose vehicles to hide the debt and losses in order to deceive potential shareholders that, after receiving distorted accounting information on the company, decided to invest their savings in a company that did not have the solvency and guarantees offered by the managers."
Related article:
- Pescanova’s feasibility plan excludes its liquidation
By Analia Murias
[email protected]
www.seafood.media
|