According to a statement released by the company, Folkes, the former chairman of the group, has agreed to pay Pounds 3.58m, the basic sum demanded by the group, plus interest and contributions to professional costs. The Folkes Group also said he had also agreed to reimburse any tax penalties it incurred due to the taxman’s investigation.
Following the completion an investigation into the company’s taxes, comissioned by the company and conducted by KPMG forensic accounting, current chairman John Hartley Folkes Group launched a claim of over Pounds 2m against its former chairman.
The company also demanded tax-penalties, interest, and professional costs associated with the claim against Constantine Folkes.
In a statement prior to announcing the company’s interim results last week, Hartley said: ‘I am now pleased to report that, after extensive negotiations, in which Mr C J Folkes and his advisers have fully co-operated, an out-of-court settlement has been reached whereby Mr C J Folkes will pay to the Group a settlement sum.’
The Inland Revenue launched the investigation into the group’s taxes last June, leading to Constantine Folkes’ resignation.
Constantine Folks was unavailable for comment.
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