Tax millionaire convicted: Kitzbüheler entrepreneur in court!

Tax millionaire convicted: Kitzbüheler entrepreneur in court!

An entrepreneur from Kitzbühel was convicted of tax evasion at the Innsbruck Regional Court. From January 2021, the 60-year-old had acquired jewelry and gemstones worth over one million euros via his company, but did not pay the levies required for this, in particular sales tax. The prosecutor accused him of having abused his company for a tax -free reference by pretending to be an “intra -community acquisition” and tried to bypass the sales tax of almost 200,000 euros.

The investigation showed that the bought jewels and jewelry were never intended for the intention to sell over the Immobilienverwaltungs-GmbH. The accused said guilty and expressed: "In retrospect, you are always smarter." The court imposed a partial penalty of 150,000 euros, with half of which is immediately due. In addition, the Immobilienverwaltungs GmbH was occupied with a partial penalty of 60,000 euros. The judgment is currently not yet final.

background to sales tax fraud

The case throws a light on the problem of sales tax fraud, in particular the so -called sales tax carousel. This represents a form of tax evasion and is a serious offense within the EU. Fraudsters use the VAT system to obtain illegal sales tax returns, which results in significant financial damage to the states concerned. The sales tax is collected by companies in the event of sales and must be paid to the tax office, while input tax can be deducted from the sales tax to be paid.

The process of a sales tax carousel often requires the use of false companies and fictitious sales tax refunds. Techniques to cover up this fraud include the establishment of false companies and the creation of fake documents. Digitization favors the implementation of such fraudulent activities because it enables faster trade processes and anonymized cash flows.

• penalties for participation in a sales tax carousel can be between 6 months and 10 years of imprisonment, depending on tax damage.
• In the event of tax damage over 1 million euros, prison terms are usually threatened without probation.
• In addition, the business license and personal liability of managing directors can occur.
• those affected should take legal support to protect their rights.

The European and global institutions work more together to take action against sales tax fraud. The exchange of information between tax authorities is also improved in order to recognize and punish fraudulent activities more quickly. Preventive measures and tax compliance are crucial to comply with tax regulations and minimize risks.

The case of the Kitzbühel entrepreneur serves as an example of the serious legal consequences that can result from such actions, and shows the need for clear regulations and their enforcement in order to counteract such distortions in economic competition. While the judgment is not yet final, it remains to be seen how the legal steps will develop.