Advice on voluntary disclosure

Slush funds: Finance Ministry anticipates windfall

Following a series of raids by the tax authorities and public prosecutors targeting slush funds, even local celebrity restaurateurs are trembling at the prospect of further revelations.(Bild: APA/BARBARA GINDL)

The cash register affair involving manipulated software and subsequently deleted invoices is having a greater effect than expected for the Ministry of Finance. After tax advisors in the restaurant industry aggressively promoted voluntary disclosures to reduce penalties, a windfall is now expected. Meanwhile, the key witness for the prosecution continues to be "very cooperative."

The shockwaves in the domestic restaurant scene have not yet subsided after the major crackdown by fraud investigators from the Ministry of Finance and the Special Public Prosecutor's Office. As reported, there were more than 50 raids across Austria on suspicion of black (register) cash registers using manipulated software. The estimated damage exceeds well over five million euros.

Key witness continues to spill the beans
The five provinces of Vienna, Lower Austria, Burgenland, Styria, and Upper Austria were affected. The targets were not small snack bars, but restaurants and innkeepers with corresponding annual sales.

Following a series of raids by the tax authorities and public prosecutors targeting black cash registers, even local celebrity restaurateurs are trembling at the prospect of further revelations.(Bild: APA/BARBARA GINDL)

While the developer of the criminal computer program is proving "very cooperative" as a key witness for the judiciary, according to investigators, and continues to spill the beans, the Ministry of Finance is hoping for a surprising side effect. This is because tax advisors are suddenly advertising aggressively for voluntary disclosures online.

Voluntary disclosure protects against higher penalties
This also protects potential suspects from double fines on the amount evaded. For larger restaurateurs, this can run into millions. All that is then due is the tax claim with interest. In any case, the tax office is expecting a small windfall in the coming weeks.