Wise boss slapped with tax disclosure fine of £350,000

Wise boss slapped with tax disclosure fine of £350,000 Kristo Käärmann received a £365,651 fine from the FCA in February 2021 HMRC added him to their list of public tax defaulters seven months later By Harry Wise Updated: 06:37 EDT, 28 October 2024 e-mail View comments The co-founder and chief executive of financial technology firm Wise has been fined £350,000 for failing to inform the City regulator of personal tax issues. Kristo Käärmann would have paid a £500,000 penalty but received a 30 per cent discount because of his co-operation with the Financial Conduct Authority. It follows a £365,651 fine from the FCA in February 2021 for failing to notify HMRC of a capital gains tax liability after he sold shares valued at £10million in 2017.

Penalty: Kristo Käärmann, a co-founder of financial technology firm Wise, has been fined £350,000 for not informing the authorities of his tax issues HMRC added the Estonian-born entrepreneur to their list of public tax defaulters seven months later. Regulators since began an investigation into Käärmann, who was worth £1.7billion in the latest Sunday Times Rich List.

The FCA said Käärmann did not 'appropriately consider the significance of the tax issues and notify the FCA, despite being aware of them for over seven months'. RELATED ARTICLES Previous 1 Next Wise shares slump as fintech group warns of slowing income..

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. Share this article Share However, it found no 'adverse findings' concerning his 'continued fitness and propriety' to undertake his current duties as Wise boss and concluded that he did not behave 'with a lack of integrity'. Therese Chambers, the FCA's joint executive director of enforcement and oversight, said: 'We, and the public, expect high standards from leaders of financial firms, including being frank and open.

'It should have been obvious to Mr Käärmann that he needed to tell us about these issues, which were highly relevant to our assessment of his fitness and propriety.' The Estonian national set up Wise in 2011 with Taavet Hinrikus after the pair became frustrated with the high costs of transferring cash to their home country. Among the company's financial backers have been Virgin Group tycoon Sir Richard Branson, venture capital fund Andreessen Horowitz, and Paypal co-founder Peter Thiel.

Wise was valued at £8.75billion when it was listed three years ago on the London Stock Exchange, making it the biggest initial public offering of a technology firm in the UK Capital. However, its market capitalisation has since shrunk to around £7.

5billion. During the last summer, Wise warned income growth more slowly this financial year following recent price reductions aimed at attracting more consumers. In its second-quarter results, Wise's underlying income rose by 17 per cent year-on-year to £337million, while customer numbers grew by 23 per cent to 8.

9 million. Käärmann told investors on Monday: 'After several years and full co-operation with the FCA, we have brought this process to a close. 'I remain focused on delivering the mission for Wise and achieving our long-term vision for being 'the' network for the world's money.

' Wise shares were 0.4 per cent lower at 732p this morning and have fallen by around 13 per cent since the year started. DIY INVESTING PLATFORMS AJ Bell AJ Bell Easy investing and ready-made portfolios Learn More Learn More Hargreaves Lansdown Hargreaves Lansdown Free fund dealing and investment ideas Learn More Learn More interactive investor interactive investor Flat-fee investing from £4.

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