Final Word from Thursday, August 19, 2004

Euro magazine dropped a bombshell this week when it revealed confidential information about Eurotel's tax scheme for expat managers. Euro suggested that the structure, which was devised by PwC, was illegal and could lead to criminal charges against ex-CEO Terrence Valeski. PwC refused to comment, which lent credibility to the insinuations. (Oddly, PwC has been hired to do a forensic audit of the very tax structure it itself recommended.) Euro had accurate information but intentionally told only part of the story. Valeski in fact had a base salary of Kč 12.5m, not Kč 50m, and the tax structure was approved by Český Telecom. This episode represents a degradation in what is considered fair game in business conflicts. Foreign investors will be wary of coming to a country if they have reason to fear that their tax structures will be smeared through the press. expatriat PricewaterhouseCoopers


Tel: 420 224 221 580

Published by

E.S. Best s.r.o.
Ovenecká 78/33
170 00 Prague 7
Czech Republic



FS Final Word