Fraud Prevention Package Expected to Bring 270 Million

According to data provided by the Ministry of Finance, more effective controls will play a central role. They aim to generate 110 million through measures such as additional inspectors and improved data utilization.

The package, which has already been introduced to the National Council, is quite comprehensive. It also includes the abolition of the input tax deduction for the rental of luxury properties. Previously, companies benefited from being able to reclaim VAT paid for residential construction from the state. They expect at least 50 million from this, making it the second largest item in the package.

Change in Sale of Car Wrecks

The Ministry of Finance expects another 40 million from the restriction of the refund of the standard consumption tax on sales of car wrecks abroad. In insolvency proceedings, withholding taxes (especially VAT and payroll tax) as well as social security contributions will be immune to challenges. Only where no bankruptcy proceedings are possible due to lack of assets, challenges to finance the procedural costs will continue to be permissible, up to an amount of 4,000 euros. This point is expected to bring in 30 million.

There will be harsher penalties for tax evasion. Penalties must be paid in the future even if intentional fraud results in losses rather than profits. The acceptance of cash at tax offices will be limited to 10,000 euros, similar to banks, to prevent black money and money laundering.

Expanded Disclosure Obligations

The obligations to provide information and investigation possibilities in cases of social fraud are being expanded. Currently, in the area of social insurance, the obligations to provide information and grant access apply exclusively to the employer and the insured individuals. This is now being extended to all persons who could potentially have information about the employment situation. This includes, for example, clients or employees of other companies.

Among the measures that are expected to generate significantly more revenue (16 million) is the expansion of client liability in construction. The Ministry of Finance assumes that in the construction sector, practically all subcontracting services originating from fraudulent construction companies are handled as pure labor leasing. Therefore, the existing liability of a maximum of 25 percent of the total contract volume is considered far too low. To have more impact, the rate will be increased to 40 percent.

For Marterbauer a Question of Justice

Combating tax fraud is far more than a budgetary measure, says Finance Minister Markus Marterbauer (SPÖ) about the package: "It is above all a question of justice." With the package now presented, numerous measures are being implemented to protect honest businesses. In addition, tax loopholes, which are mainly used by people with a lot of money to circumvent the tax system with "tax-saving" constructions, are being closed.

State Secretary Barbara Eibinger-Miedl (ÖVP) emphasizes that legal certainty will also be increased and more efficient procedures will be ensured. The result is a package that contributes to the necessary budget consolidation and represents more fairness towards honest companies as well as taxpayers.

(APA/Red)

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