Tax evasion

Businessman fined after gold bar deal

A well-known Salzburg businessman admitted to the charge of tax evasion at his trial on Thursday at the regional court. In the course of selling a 1.5 million euro property, he had part of the purchase price paid "in the black": in the form of 200,000 euros and six gold bars. 

The entrepreneur, who is already active in the real estate business, had officially sold a property in Flachgau for 1.1 million euros in November 2022. However, the unofficial sale price was significantly higher: 1.5 million euros. The company managing director received the difference in the form of 200,000 euros and six gold bars.

On the one hand, however, the defendant had reduced the corporation tax by almost 90,000 euros. And on the other hand, it was a "hidden profit distribution", as no capital gains tax was paid, emphasized the public prosecutor. In this case, 100,000 euros in capital gains tax would still have had to be paid. The prosecutor also applied for a fine to be imposed on the company in accordance with the Corporate Criminal Liability Act.

Confession and restitution
"The taxes have already been paid," emphasized the defence lawyer, who repeatedly pointed out that restitution had already been made. The defendant himself pleaded guilty and confessed: "I'm sorry. It was stupid. I'm not the kind of person to do something like that. It was a one-off", he explained in his closing words. With regard to a possible revocation of his business license in the event of a heavy sentence, the defence lawyer concluded by asking for leniency: "This is not the classic tax evader". 

Due to the many reasons for mitigation, the panel of lay assessors was merciful and gave the entrepreneur a second chance: a fine of 95,000 euros, half of which he must pay. The association, of which the defendant is the managing director, received a fine of 38,000 euros, half of which was also conditional. The verdicts are already legally binding.