Germany's Bayern boss may have hid millions: report

BERLIN (AFP) –

Bayern Munich president Uli Hoeness, pictured in Munich on November 24, 2012. Hoeness may have hidden more than 10 million euros ($13 million) from tax authorities, according to a Sunday media report.

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

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.

Both 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 six million euros 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 euros in income.

Hoeness, who also draws income from a sausage company he co-founded, told Focus he had originally planned to come forward after an expected 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.”

Peer Steinbrueck, due to challenge Chancellor Angela Merkel in September elections, also attacked those who hoped to win an amnesty without having to reveal their identity.

“He should be treated as normal in a state of law … he should not gain an advantage because he is a celebrity, not should he be disadvantaged because he is a celebrity,” Steinbrueck told WDR television.

However Philipp Roesler, leader of the pro-business Free Democrats, junior partners in 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.

Hoeness told Sport Bild that he would be in the Allianz Arena to cheer Bayern on and said he would not be stepping down over the affair.

He also told the Sueddeutsche Zeitung that he would not be commenting on a case that was still under investigation.

“You can imagine that I would have a lot to say on the matter but I must first fulfil my obligations towards the authorities,” he told the daily.

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.