Austrian Kathrin Brettschneider, the financial director of the local company that owns the JW Marriot Grand Hotel in Bucharest, is investigated under judicial control by Romanian prosecutors for alleged tax evasion, according to judicial sources quoted by Mediafax newswire.

The prosecutors and local police carried out raided on Thursday morning, July 7, the offices of Societatea Companiilor Hoteliere Grand SRL located at the JW Marriott hotel. The company, which owns a multifunctional complex that includes the five-star hotel as well as offices and a shopping area, is investigated for alleged tax evasion. Austrian construction group Strabag fully owns the company.

The company and its directors are suspected of having diminished the taxable profits by illegally registering interest expenses and foreign exchange losses between 2008 and 2015, according to a press release by the Romanian Police. The damage caused by these illegal activities has been estimated at over RON 7.5 million (EUR 1.68 million), according to the police.

The prosecutors questioned Kathrin Brettschneide on Thursday, July 7, and placed her under judicial control for 60 days. The judicial control terms include the obligation to go to a designated police station regularly, the interdiction to leave a certain designated area, and the interdiction to return to her workplace or contact other people involved in this case.

The investigators also wanted to question the company’s general manager, Austrian Gregor Aufhauser, but couldn’t do that as he was not in the country, according to Agerpres.

Societatea Companiilor Hoteliere Grand is one of the top 3 hotel companies in Romania based on its turnover. It had a turnover of EUR 26.5 million in 2015 while its total revenues amounted to EUR 33.1 million.

Its biggest revenue source is the JW Marriott hotel, which is managed separately by the Marriott International group. The company itself only manages the Grand Offices and the Grand Avenue shopping gallery as well as other leasable spaces.

In 2015, Societatea Companiilor Hoteliere Grand recorded a net profit of EUR 1.67 million, down from 1.95 million in 2014. However, between 2010 and 2013 the company recorded losses, according to official data from the Finance Ministry.

Austrian construction group Strabag is currently the company’s only shareholder. Strabag bought 35% of the company from Bank of Cyprus for EUR 95 million, in August 2014. The deal also included a subordinated loan that Societatea Companiilor Hoteliere Grand had previously taken from Bank of Cyprus.

editor@romania-insider.com