Daewoo denies VAT fraud allegations

Daewoo FSO has denied allegations made by Życie Warszawy on June 18, which were based on information from the Internal Security Agency (ABW), that it and its subsidiaries perpetrated a zł. 50 million fraud, through non-payment of VAT. The newspaper discovered that the ABW was investigating Daewoo in relation to 1997-1999. Yesterday, the company stated that during the years in question, Daewoo's local partnerships were transformed into subsidiaries that bought the assets of Daewoo FSO. "According to existing VAT regulations, these transactions were properly taxed. In all cases, VAT was calculated and paid in full to a proper fiscal office. In accordance with the law, however, subsidiaries that had paid too much tax, could apply for a refund," said the statement. Daewoo FSO also stressed that the correctness of each tax return was confirmed by a tax office inspection. (www.onet.pl) M.M.