Wise PLC (LSE:WISE) said it continued to support its chief executive Kristo Kärmann while he is being investigated by the City watchdog over a deliberate tax default, which the board said it is taking “very seriously”.
HMRC published a list of business and individual tax defaults last September, saying he failed to pay £720,495 of tax for the 2017-18 tax year and received a fine of £366,000.
Following this, the board of the international payments company carried out an investigation, where it took advice from external lawyers.
Towards the end of last year, the board shared details of its findings, assessment and remedial actions with the Financial Conduct Authority (FCA), which has now begun an investigation.
This probe is examining the regulatory obligations and standards to which Kärmann is subject, with which Wise said its CEO “intends to cooperate fully”.
David Wells, chair of the board, 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 advisors to ensure his personal tax matters are appropriately managed.”
Karmann co-founded the company as TransferWise in 2011.
The shares fell over 3% in early trading to 396.4p.