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The group reacts to continued public criticism.
The Lufthansa Group has responded to ongoing public criticism from German politicians and has published a list of what it says “all companies based in non-cooperative tax areas according to the EU list”. This should “create the desired transparency,” says a message from the company. According to its own information, Lufthansa observes in all the countries in which it operates. “National and international legal and tax regulations”.
The company also emphasizes that all of the companies on the list are subsidiaries of the LSG Group restaurant division or its joint venture with GCG Catering Group. These would offer, for example, food and logistics services “for local airlines and airports.” Their earnings “would be taxable on site even if they were taken directly from Germany,” Lufthansa said.
The group lists the following:
- Arlington Services Ltd, Panama, Purpose: holding company of the LSG Group;
- Sky Chefs of Panama, commercial purpose: catering at the airport
- LSG Catering Guam Inc., commercial purpose: holding company of the LSG Group
- LSG Lufthansa Service Guam Inc., Business Purpose: Airline Catering
- Inflite Holdings Cayman Ltd (49 percent owned by the LSG Group), business purpose: holding company
- GCG Virgin Islands Inc., Business Purpose: Ground Handling and Airport Catering
- Goddard Catering Group GCM Ltd., Cayman Islands, Business Purpose: Catering Operations
The Group did not publish further information on, for example, the cash flows of affected subsidiaries in low-tax countries.
Criticism of the SPD and the Greens
Observers attribute the fact that Lufthansa is now on the offensive and exposes connections with tax havens to public pressure in recent days. Because the company is negotiating billions of grants with the German state, some parties have criticized the opaque handling of the crane with daughters at Caymans and Co.
European green politician Sven Giegold said: “If you want to receive tax money, you must not trample on tax justice.” SPD co-director Norbert Walter-Borjans specified: the affected companies would have to close those subsidiaries in tax havens that “only serve to avoid taxes and have no other business purpose”, cite “Süddeutsche Zeitung”, NDR and WDR.
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