Wednesday, October 3, 2007

Siemens to Pay EUR 450 Million Fine, Ending Com Investigation

The Munich District Court has imposed a fine of €201 million on Siemens AG, marking the end of the investigation of Siemens' former Communications (Com) group in its bribery scandal. In addition, a final settlement has been reached with the German tax authorities. Total payments of approximately €450 million at the former Com Group have been determined to be non-deductible, resulting in a tax charge of €179 million. Of this amount, €168 million has already been recorded in the company's consolidated financial statements for fiscal 2006 for questionable payments of approximately €420 million.

Siemens said it accepts the fine imposed by the court, and takes responsibility for past misconduct at the Com Group. The company has waived its right to appeal.

See also