Police uncover

Tax scandal: conspirators sold associations

The tax investigation department of the Anti-Fraud Office has uncovered a serious case of tax evasion in Austria.

(Bild: stock.adobe.com, Krone KREATIV)

Two suspects allegedly sold hundreds of people non-profit associations from the cultural and craft sectors in order to evade tax payments. According to the Ministry of Finance, many buyers, some from conspiracy movements, may have deliberately made the purchase.

The tax investigation department of the Anti-Fraud Office has uncovered a serious case of tax evasion in Austria. After extensive investigations, the tax investigation team carried out seven simultaneous house searches in Vienna, Graz, Salzburg and Upper Austria at the beginning of November.

Training courses offered for tax evasion
The main suspects are a 40-year-old and a 51-year-old. According to the ministry, they are suspected of having "built up a lucrative source of income" by founding and subsequently selling hundreds of associations since 2019.

Before the club sales, so-called training courses are said to have taken place to show the buyers how to handle taxes with the clubs. "The income from the sales and training courses was either not properly declared or was declared as 'tax-free' in various clubs," said the Ministry of Finance.

This success of the tax investigation shows that we are taking decisive action against tax fraud. Such schemes damage society and put honest taxpayers at a disadvantage. Protecting the rule of law and financial fairness remains our top priority.

Finanzminister Gunter Mayr

Bild: APA/Helmut Fohringer

100,000 euros and luxury watches confiscated
During the house searches, 100,000 euros in cash, luxury watches and muscle-building drugs from China were found. The latter were handed over to customs for further investigation.

Finance Minister Gunter Mayr emphasized: "This success of the tax investigation shows that we are taking decisive action against tax fraud. Such schemes damage society and put honest taxpayers at a disadvantage. Protecting the rule of law and financial fairness remains our top priority."