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Sponsors under scrutiny
MUNICH. Ger many. Jan 29: Prosecutors are checking evidence revealed at the “ trial of tennis ace Steffi Grafs father, to determine if a criminal investigation should be opened against her sponsors, a Munich-based magazine said Saturday, reports AP.
The weekly Focus magazine, said the sponsors Included Adidas. Dunlop and the German
milk products company Sued-milch.
According to the report, the companies were willing to route their sponsorship payments to a Netherlands-based tax haven set up by Peter Graf in 1987 to avoid German taxes on his daughter s earnings.
Focus quoted Mannheim prosecutor Hubert Jobski as saying his office was still going through information that came out at the trial of Peter Graf, to determine if a criminal investigation would be opened against any or all of the three companies.
Spokesmen at the companies were not available to comment on the report Saturday. However, a spokesman at Adidas, contacted after Peter Grafs trial ended, said "we gave no comment during the trial and we won't comment now."
Peter Graf was found guilty on six counts of tax evasion and attempted tax evasion on Friday and sentenced to three years and nine months in prison by the Mannheim High State Court.
The court said that Graf, 58. had evaded some 12 million marks (7.3 million dollars) in taxes on his daughter's earnings between 1989 and 1993. He also attempted to avoid paying an other 3 million marks (1.8 million dollars) in taxes, the court
saia.
However, the Graf family paid nearly 20 million marks (12 million dollars) in back taxes even before the trial started In September. Prosecutors had originally charged Graf with avoiding 19.2 million marks (11.7 million dollars) In taxes.
Graf, who was released on 5 million marks (3 million dollars) bail on Nov. 15. after being jailed for more than 15 months, remains free pending an appeal That process could take months.
Grafs time in prison counts toward serving the sentence, which means that If he is required to return to prison, he could be released in 7 1/2 months, or after completing half of the full sentence on good behavior.
Also convicted and sentenced to two years and six months as an accessory to tax evasion was Graf family tax advisor. Joachim Eckhardt. He had spent 14 months in jail before he was also released on bail, and remains free pending an appeal.
The court exonerated Steffi Graf in the case, saying she had played no active role in the tax evasion, and asked prosecutors to close an ongoing investiga tion against her. Prosecutor Jobski said his office would independently make its decision..