It's a matter of millions

Former Finance Minister Grasser Charged Again

Karl-Heinz Grasser(Bild: Mario Urbantschitsch)

Former Finance Minister Karl-Heinz Grasser has been indicted again. This time, the charges stem from his alleged failure to pay taxes on “bribes” he received. He and two other businessmen are accused of evading millions in taxes.

The Public Prosecutor’s Office for Economic Affairs and Corruption (WKStA) has filed charges against a former finance minister and two other businessmen. The case stems from bribes related to the privatization of Buwog and the leasing of financial service offices in the “Terminal Tower” in Linz. It should be noted that the WKStA does not mention Karl-Heinz Grasser by name in its press release.

Around ten million euros had changed hands—for which the three defendants have already been convicted. The current charges relate solely to the allegation that Grasser and the two businessmen failed to pay taxes on the bribes, as the WKStA announced on Wednesday. The funds are said not to have appeared in their income tax returns for 2005 through 2007. The WKStA now accuses them of having “deliberately concealed” this information.

The amount in question is nearly five million
As a result, the defendants are alleged to have “evaded taxes totaling approximately 4.9 million euros.” In addition, Grasser and the two businessmen are alleged to have actively assisted one another in the tax evasion.

According to the WKStA, two of the defendants have already voluntarily reported themselves to the tax authorities. However, from the prosecution’s perspective, this does not protect them from punishment. This is because a voluntary disclosure only exempts one from punishment if the facts are disclosed “in a timely, complete, and truthful manner”—which is not the case here.

Imprisonment Looms Once Again
If convicted of tax evasion, the defendants could face a fine of up to 9.8 million euros. In addition, a prison sentence of up to two years is possible.

Grasser’s attorney, Manfred Ainedter, expressed surprise at the belated indictment: “It is completely incomprehensible that, following the conclusion of the protracted Buwog trial, an indictment has been filed in a financial criminal case that has been pending since 2010—without any apparent investigation having taken place,” he told the “Krone.” 

 under monitored house arrestFollowing his final conviction in the Buwog trial, Grasser spent seven months in prison in Innsbruck; afterward, he was fitted with an ankle monitor, which he still wears. The former finance minister most recently worked in Gamsstadt, Tyrol, and lives in Kitzbühel with his wife, Fiona Pacifico Griffini-Grasser—an entrepreneur and Swarovski heiress worth millions—and their daughter.