After accounting scandal

Voestalpine wants millions back from the tax office

"This is an isolated case," says Herbert Eibensteiner about the profit-improving incorrect bookings made in one company over a number of years.(Bild: voestalpine)

In a video to employees, CEO Herbert Eibensteiner had already mentioned that the company may have paid too much tax - now voestalpine is certain. The steel group based in Linz (Upper Austria) wants EUR 14 million back from the tax office. The reason: for years, figures had been embellished in one company.

At the Annual General Meeting on July 3 at the Design Center in Linz, voestalpine CEO Herbert Eibensteiner gave a 17-minute presentation to inform shareholders about the case, which has brought the steel group a great deal of media attention since the beginning of June.

The reason for this are earnings-improving false bookings that had been made in a company of the Metal Forming Division over 12 years and amounted to a total of 99.5 million euros. The accounting scandal came to light internally in February. Since the announcement of the business figures for 2023/24, it has been an ongoing topic.

voestalpine referred to the accounting scandal in the 2023/24 Annual Report.(Bild: Krone KREATIV/Screenshot)

"The status quo is unchanged," emphasized Eibensteiner on Wednesday morning when he presented the results for the first quarter of 2024/25. A statement that is true with regard to the status of the investigation. After all, there is still no final report and the investigation is in the hands of a specialized auditing firm and a German law firm.

Tax income booked for the first quarter of 2024/25
However, while a loss in the mid-single-digit million range can no longer be reversed, there is apparently still something to be gained in terms of taxes. Accordingly, voestalpine has booked tax income of EUR 14 million for the first quarter of 2024/25.

"We want to get this amount back from the tax office," says Eibensteiner. CFO Gerald Mayer confirmed that it took time to correctly allocate all amounts and that tax returns have now also been corrected. "In the case of the 14 million, it is relatively clear that we will get it back," said Mayer.

A decision as to whether civil or criminal charges will be brought in the case will only be made once the final report is available. "The aim is to be able to take legal action against those responsible," says Eibensteiner.