Tax Affair Involving Entrepreneur Kühn: Investigations Reach as Far as Liechtenstein

New Leads in a Long-Running Case

The name Matthias Kühn keeps surfacing on the island — and rarely without trouble. What began here as a rumor on the Plaza is now official: the Spanish financial authorities are expanding an ongoing proceeding and are turning their attention to a tax firm in Liechtenstein. Investigators suspect that nested corporate structures hid large sums of money.

What It's About

For more than two years prosecutors have been examining the business practices of the German-born real estate developer. The focus is on insolvencies, complex purchase and payment sequences, and, according to investigators, a network of companies that formally had nothing to do with each other — but in practice are believed to be controlled from a single hand. The authorities say claims have grown far beyond the originally demanded 13 million euros. We are now talking about amounts in the high double-digit millions.

Investigators see several building blocks: mailbox companies in tax havens, trustees, and complicated transfers of assets. The theory: this was meant to protect wealth from creditors and from the tax authorities. Whether that was legal or criminal in each individual case must be determined by a court.

What Is Changing Now

New is that the investigations no longer concern only local contacts. A law firm in Liechtenstein, which allegedly advised several of these firms, is coming under scrutiny. Colleagues from Palma report that officials have already begun requesting documents and preparing witness interviews. On the side: At the cafe on Passeig Mallorca people have been whispering for days — you hear times, file folders, supposed names. That's how local journalism works, after all.

Next Steps in Court

The investigative court has scheduled hearings for the end of October. Planned are interrogations of the principal accused as well as his two sons and other participants. Originally the dates were to take place in July, but were postponed according to the defense. A decision on the security deposit already deposited remains pending: Kühn posted bail in the tens of millions and has legally contested the amount.

Family and the Public

In discussions, the question arises how much family members are affected. The entrepreneur's wife, a well-known figure in Spain, was named in earlier steps, but as of now is not directly accused. Whether she still plays a role in the investigations remains open.

What remains: Many questions, dusty stacks of files, and a case that could take months more. For residents as well as for investors the message is clear: the investigation is ongoing and will keep Mallorca busy for a while.

Short Facts: Investigations for more than two years; originally 13 million euro claim; bail in the millions; new investigations with look toward Liechtenstein; court dates at the end of October.