Shamed Wise chief probed by watchdog over tax default

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The move comes after Mr Kaarmann, 41, was named and shamed by HMRC last year. It issued a £365,651 fine over £720,495 of unpaid taxes or duties in the year to April 2018.

Wise, which enables people and small businesses to transfer money across borders at a fraction of the cost of using a high street bank, has seen its share price tumble since the fine emerged.

The company’s stock market value has more than halved from £8billion a year ago.

It said it had since launched its own internal probe, with help from external legal advisers, which finished at the end of last year.

Wise shared its findings and actions with the FCA and said Mr Kaarmann intends to co-operate fully with the FCA investigation. Wise chairman David Wells said: “The board takes Kristo’s tax default and the FCA’s investigation very seriously.”

“After reviewing the matter late last year, the board required that Kristo take remedial actions, including appointing professional tax advisers to ensure his personal tax matters are appropriately managed.”

“The board has also shared details of its own findings, assessment and actions with the FCA and will co-operate fully with the FCA as and when they require, while continuing to support Kristo in his role as chief executive.” Mr Kaarmann co-founded Wise, previously known as TransferWise, with Taavet Hinrikus in 2011.

He floated the business on the London Stock Exchange last July in what was one of the biggest flotations of the year and the largest London tech listing in history.

Estonian Mr Kaarmann still owns 19 percent of the firm.

Shares in Wise fell yesterday on the back of confirmation of the FCA investigation.

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