Dutch TPG posts surprise tax liability

Dutch mail and logistics group TPG has announced a EUR 59m (USD 71m) tax liability 50percent higher than estimated last month relating back to an unnamed UK subsidiary in the late 1990s. TPG’s audit committee has directed the company’s board of management to make ‘organisational and personnel changes with respect to certain UK subsidiaries’ although a TPG spokesman declined to give further details. A TPG statement said: ‘The investigations conducted by the audit committee, with the assistance of independent legal counsel, concluded that not all relevant details of certain tax matters were adequately disclosed to the UK Inland Revenue and PricewaterhouseCoopers.’ The increased tax charge is EUR 19m higher than TPG’s previous management estimate, contained in the publication of 2003’s unaudited results, on February 19. Chief executive officer Peter Bakker said: ‘Now is the time for TPG to resolve all outstanding UK tax issues, for which purpose we shortly are submitting a report to the UK Inland Revenue. Upon completion of the ongoing discussions with the UK Inland Revenue, the actual liability will be settled.’ The Inland Revenue declined to comment on the discussions.