Government Agrees on Tax Fraud Package

Next year, the planned measures are expected to bring 270 million euros into the budget, and by 2029, additional revenues of 1.4 billion euros are anticipated through fraud prevention. The focus is on tax loopholes in luxury real estate, shell companies, liabilities in the construction sector, and social insurance fraud.

Especially in times of budget consolidation, there should be zero tolerance for companies that cheat the public out of taxes, said Babler at the press foyer after the government meeting. It is fair that everyone meets their obligations, also stated NEOS leader and Foreign Minister Beate Meinl-Reisinger. Tax fraud has many faces, ranging from missing or manipulated cash registers to shell companies and international carousel fraud, and there are tax gaps that are mainly exploited by wealthy individuals, said Finance Minister Markus Marterbauer (SPÖ) in a statement. All these issues must be consistently addressed, "not only for budget consolidation but above all as a matter of justice and a functioning economy."

Benko Methods Should Become Impossible

Referring to the approach of Signa founder René Benko regarding his family residence, the input tax deduction for the rental of luxury real estate is to be abolished. According to the Ministry of Finance, this should generate additional tax revenues of around 50 million euros annually. Another lesson from the Signa case is a legal clarification in insolvency proceedings. To prevent paid taxes and social insurance contributions from being reclaimed for the bankruptcy estate in insolvency proceedings, withholding taxes and social insurance contributions should be immune to challenges in the future. Only where no insolvency proceedings would be possible due to lack of assets, challenges to finance the procedural costs remain permissible.

The NoVa fraud in the sale of car wrecks abroad is to be countered by completely abolishing the possibility of NoVA reimbursement when exporting vehicles abroad. In cases of social fraud, the obligations to provide information and access are to be extended to clients and employees of other companies who may potentially have information about the employment situation. Shell companies in the area of the Social Insurance Institution for the Self-Employed (SVS) should be better combated through faster reporting of pseudo-self-employment and more effective sanctions. In the construction sector, client liability in cases of labor leasing is to be increased from a maximum of 25 percent of the total contract volume to 40 percent.

Intentional Tax Evasion Will Be Punished More Severely

Other measures include improving the exchange of information for monitoring and tracking the taxation of income from cryptocurrencies and limiting cash acceptance in tax offices to 10,000 euros. Intentional tax evasion is to be punished more severely, even in the case of losses.

The measures are part of a proposal by an expert commission set up by Finance Minister Markus Marterbauer (SPÖ) to combat tax shifting, tax fraud, and undesirable tax avoidance. The tax fraud package is to be approved by the Council of Ministers by circular resolution on Tuesday or Wednesday and introduced to the National Council this week so that it can be passed in the December plenary session.

(APA/Red)

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