Dutch postal group launches UK tax probe
TPG, the Dutch postal group trying to capture some of Royal Mail's business, has begun an inquiry into the tax affairs of a British subsidiary.
Link: Royal Mail to lose VAT advantage
The subsidiary, which is part of an express delivery service, has been in dispute with the Inland Revenue since the late 1990s over the treatment of its earnings.
But with matters with the Revenue coming to a head, and reports that TPG could be left with a headache of up to £27m, TPG has decided to initiate its own review.
The decision was taken by the company’s audit committee after consulting with TPG’s auditors, PricewaterhouseCoopers.
Officials claimed there was no question of missing monies.
The investigation though could hold back the fully audited 2003 accounts.