
Austria’s tax fraud unit has uncovered a significant tax evasion scheme involving fraudulent charitable organisations, the Finance Ministry announced on Sunday.
The alleged masterminds, aged 40 and 51, are accused of operating the scheme since 2019. Authorities believe the pair sold hundreds of fake non-profit associations to buyers, allowing them to avoid paying taxes. Many of the buyers are said to be connected to conspiracy groups, raising suspicions that some knowingly participated in the operation, according to the ministry.
Nationwide Raids
In early November, tax investigators conducted seven simultaneous raids in Vienna, Graz, Salzburg and Upper Austria. Among the items seized were €100,000 in cash, luxury watches, and muscle-enhancing drugs of Chinese origin, which have been handed over to customs for further examination.
Before selling the organisations, the suspects allegedly held workshops to show buyers how to exploit the entities to evade taxes. Officials said the income from these sales and training sessions was not properly declared. Instead, the funds were falsely classified as ‘tax-free’ across various associations.
Finance Minister Gunter Mayr praised the investigation, stating: “This successful operation demonstrates our unwavering resolve to tackle tax fraud. Criminal acts like these harm society and place an unfair burden on honest taxpayers. Our top priority remains ensuring fairness and upholding the rule of law.”