GfK Reports 'Tax Fraud' at Turkish Subsidiary

GfK says it has uncovered incidents of tax evasion at its Turkish subsidiary GfK Araştırma Hizmetleri. The firm's former local management are accused of collaborating to defraud the global group through tax and social security avoidance schemes over several years.

GfK has self-reported the matter voluntarily to the authorities in Turkey, and will be exploring potential criminal and civil charges against the former Turkish management team and 'other responsible persons'.

The company will be booking a one-off provision of EUR 21m in its 2012 accounts to cover potential historic tax and social security financial obligations at Istanbul-based GfK Araştırma Hizmetleri. GfK said in a statement that its adjusted operating income will not be affected, but confirmed that consolidated total income will.

The group adds that it was taken the necessary measures to maintain the 'highest level of service' to customers, and says that as Turkey is an important market and a key component of its growth strategy, business activities will remain unchanged and the company will continue to invest in the region going forward.
Web site: www.gfk.com .