In a series of raids, the tax investigation unit based at Austria’s Office for Combating Fraud uncovered a large-scale fraud scheme involving the trade of spare parts for luxury vehicles. The perpetrators, operating throughout Austria, used a particularly complex system of document forgery and manipulated supply chains. According to the Ministry of Finance on Sunday, around one million euros in taxes were evaded.
As part of the investigation, which had been ongoing for several years, searches were carried out at seven locations in Vienna and Upper Austria. In addition, 34 bank accounts at five financial institutions were opened for inspection, numerous witnesses and suspects were questioned, and national and international requests for information were made. The investigation also included a tax audit and the seizure of extensive documents and data carriers. The audits were conducted in close cooperation with the Tax Office of Austria.
The two suspects, operating through a limited liability company, systematically evaded taxes over several years. To do so, they manipulated vehicle supply chains for Italian and German luxury cars by interposing individuals connected to them.
No Entries In Accounting System
Furthermore, part of the business transactions was not recorded in the accounts. Incoming invoices were altered to simulate higher purchase prices or additional expenses, while outgoing invoices were falsified to show lower revenues. This allowed profits to be shifted into the suspects’ private assets without proper taxation. As a result, large sums in value-added tax, corporate tax, capital gains tax, and vehicle tax were not correctly paid.
Several luxury vehicles were also declared as alleged demonstration cars to obtain temporary exemption from vehicle tax and to claim input tax deductions. In reality, the vehicles were used as company assets. The numerous manipulations demonstrated systematic and deliberate action, some of which was even admitted by the suspects themselves. The preliminary damage amount is estimated at just under one million euros. Criminal proceedings have been initiated for multiple offenses.
