Deutsche Post to take legal action against fraud allegations

Deutsche Post World Net AG said its units Deutsche Post Global Mail and DHL Worldwide Express are to merge their international mail activities to enhance the group’s position in international mail business.

It said Deutsche Post Global Mail will take over the former DHL product WorldMail and process these items in its own network.

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Deutsche Post, the partly privatised German postal authority, said Tuesday it would take legal action against anyone who claims the company wrongly charged some of its customers value-added tax for some of its services, but failed to pass on the VAT to the tax authorities.

In a press conference here, Deutsche Post chairman Klaus Zumwinkel insisted that group made its sale tax payments in line with “current German and European law.”

And the group would take legal action against anyone who damaged the price of Deutsche Post shares by making false allegations on this issue, Zumwinkel warned.

Recent media reports have said that Deutsche Post faced steep back-payments of VAT to the tax authorities.

“Among other things, the allegation was made that Deutsche Post wrongly charged VAT from customers but failed to pass on the VAT to the tax office,” the company said.

But it dismissed the allegations as “groundless”.

“Sales tax has never been charged on postal services in Germany. The same stands for neighbouring companies in Europe,” Zumwinkel said.

Universal postal services within Germany, for example, basic delivery services of letters weighing up to two kilogrammes, are exempt from VAT.

But Deutsche Post charges a sales tax for commercial customers, in accordance with EU rulings, the company said in a statement.