Tax fraud in Austria: 107 million euros uncovered!

Tax fraud in Austria: 107 million euros uncovered!

In 2024, over 107 million euros in tax fraud were discovered in Austria. This alarming sum was determined by the Anti-Fraud Office (ABB), which identified a total of 195 bogus companies and closed 6,059 financial criminal proceedings during this period. Finance Minister Markus Marterbauer emphasized that tax fraud not only harms the state, but also puts a burden on honest taxpayers. In response to these developments, the Federal Government plans to further intensify its efforts against tax fraud and tax avoidance. Tax and social fraud as well as tax evasion in the construction and services sectors were particularly affected in 2024.

The legal definition of tax evasion describes an intentional violation of tax obligations, which results in a reduction in taxes. Common forms include grossly negligent evasion of duties and customs offenses. It turns out that companies often find creative ways to avoid their tax responsibilities. For example, illegal cash register systems were discovered that made it possible to delete sales.

Illegal activities uncovered

As part of these fraud cases, several illegal gambling activities were also uncovered. A repeat offender was sentenced to a fine of 960,000 euros and a twelve-month prison sentence for his activities. Two major security fraud cases were also of interest; This was about illegally employed security forces and drug trafficking.

A concrete example from the construction industry shows how far some companies will go to avoid taxes. A construction company manipulated over 1.1 million records to hide untaxed sales. This led to an estimated financial loss of 325,000 euros. The company's managing director could now face a fine of up to 650,000 euros.

Establishing associations to avoid taxes

One particularly scandalous case involved two Austrians offering “training” on tax avoidance. This led to the creation and sale of 26 clubs. Such activities are not only suspected of being illegal under tax law, but could also violate tax evasion guidelines.

Tax evasion occurs when taxpayers wrongly benefit from a tax assessment through false or incomplete information in the tax return. In the case of a “tax debtor” act, it is crucial that the culpable breach of the tax obligation can be proven, which significantly influences the criminal law implications, including the possibility of strangling voluntary disclosure.

Tax fraud, on the other hand, is considered a more serious crime. It arises when an attempt is made to deceive the tax authorities using forged or untrue documents. This type of offense can result in up to three years in prison or a hefty fine. It is clear that the state wants to demonstrate rigor to counteract these trends.

In summary, it can be said that the developments in financial criminal law and the discovery of numerous tax crimes in Austria illustrate how important it is to take decisive action against tax fraud and evasion. The complete prosecution of these crimes is of central importance in order to both protect the state budget and ensure a fair tax climate for all citizens.