After voluntary disclosure

KTM boss Pierer had to pay millions in back taxes

According to the responsible tax office, Pierer had to pay a total of more than eight million euros in back taxes due to the income from the insurance in Liechtenstein.(Bild: FOTOKERSCHI.AT)

During the 2017 election campaign, the industrialist emphasized that he had paid taxes correctly. He was also a major donor to the ÖVP at the time. Now he had to pay millions in back taxes.

The industrialist Stefan Pierer, founder of the motorcycle manufacturer KTM and major donor to the ÖVP, did not properly pay tax on the income from an insurance policy in Liechtenstein. Research by "Standard" and ORF revealed that Pierer had to pay millions in back taxes. This happened after a voluntary disclosure in 2017.

In total, there was a tax reduction of six million euros, plus interest on claims and a tax increase. In total, Pierer therefore had to pay more than eight million euros in arrears, according to documents from the responsible tax office. Pierer lodged an appeal against the interest payment, among other things, the outcome of which is not clear.

A tax agreement with Liechtenstein was due to come into force in 2013. This would have disclosed the assets previously held there anonymously. Two weeks before the agreement came into force, Pierer canceled the insurance policy and transferred more than 20 million euros to Austria.

Two years later, the government decided that income had to be reported retroactively. This resulted in the so-called list of evaders, which also included Pierer. The Upper Austrian was a recurring topic in Austrian politics due to his donation to the ÖVP.