Tax Inspectors Recover €17.7 Million in First Half of 2024

Tax Inspectors Recover €17.7 Million in First Half of 2024

Illustration photo. Pavel Danilyuk/Pexels
Illustration photo. Pavel Danilyuk/Pexels

In the first half of 2024, Austrian tax inspectors from the Office for Fraud Prevention collected €17.7 million in back taxes, the Ministry of Finance reported.

The investigations primarily targeted telecommunications, real estate, and construction companies and entities operating in the red-light district. A total of 83 cases were concluded, with offenders facing penalties up to double the amount of taxes evaded.

The VAT Fraud Prevention Competence Center (USt-BBCC) conducted risk analyses in 135 cases. One significant case of cross-border VAT fraud involved a network dealing in mobile phones, which lowered costs by not remitting VAT. In 2023, at least 28 cash packages were sent from eastern Austria to the main suspect, resulting in a total loss of over €50 million.

In the real estate sector, investigators uncovered unreported invoices and kickback payments. Construction companies were established to sell renovated apartments and then liquidated post-sale. Fake company invoices exceeded €6 million, while one suspect’s transactions included transfers over €1.2 million and cash withdrawals amounting to €461,000.

The construction industry also witnessed tax evasion cases. A company is suspected of generating “black income” through unbilled payments and incomplete accounting, causing nearly €3.5 million in damages.

The tax inspectors conducted eight house searches opened seven bank accounts and conducted 109 interviews. Following a police report in the red-light district, inspection, and investigation steps were initiated, leading to the seizure of evidence suggesting unreported prostitution and room rentals.

Finance Minister Magnus Brunner (ÖVP) emphasized the importance of the inspectors’ work in securing public funds. From January to June 2024, 56 house searches and 78 bank account openings were conducted, with over 50 terabytes of IT data secured.

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