15,000 people in 7,100 companies checked – number of fake companies increased again
Vienna (OTS) – The financial police in the anti-fraud office checked almost 15,000 employees in around 7,100 companies in the first quarter of 2024 in the fight against tax evasion and social fraud. This resulted in almost 2,100 criminal complaints with a total fine of more than 4.8 million euros. Most of the offenses relate to violations of the Employment of Foreigners Act (872), followed by undeclared work (787) and the Wage and Social Dumping Combat Act (410). Almost 750,000 euros in fines were imposed in the area of illegal gambling. The development of fake companies continues to be problematic – a new anti-fraud law is intended to remedy this.
“The financial police regularly carry out targeted checks in order to protect the financial interests of the republic and to take rigorous action against tax and social fraud, undeclared work and illegal gambling. This is the only way honest companies can be protected. In addition, we are strengthening fair competition and fighting against bogus companies with the anti-fraud law currently under review. “We are giving the financial police a new tool in the fight against black sheep,” said Finance Minister Magnus Brunner.
In the first quarter of this year, the highest total penalties were applied for in Vienna (1.2 million euros), followed by Lower Austria (1 million euros) and Upper Austria (660,000 euros). In absolute numbers, the most criminal charges were filed in Vienna (570), ahead of Upper Austria (339) and Lower Austria (301).
The financial police are also continuing the fight against illegal gambling unabated. In the first quarter, 42 checks were carried out, which resulted in 32 criminal charges with a total fine of around 750,000 euros. This is a significant increase compared to the comparable period from the previous year (1st quarter of 2023: 492,000 euros), which is primarily due to several major cases in the Salzburg area.
The development in the area of fictitious companies continues to be problematic. In the first three months of this year, 39 fake companies were identified – in the same period last year there were 28. A trend reversal was noticed for the first time in the posting of workers from abroad: in the first quarter of 2023 there were still around 54,600 postings , so this year the figure is just under 47,150.
New anti-fraud law strengthens the fight against bogus companies
A new anti-fraud law is currently being assessed in order to be able to take even more effective action against various fraud scenarios, especially bogus companies. The focus is on promoting tax justice and combating tax fraud as well as strengthening legal certainty and protecting honest business from illegal and competition-distorting activities.
As an effective measure against fictitious companies, in addition to other measures to speed up procedures, the Social Fraud Prevention Act also stipulates a sanction for the creation and use of fictitious and cover invoices. The introduction of this new financial offense (and a proposed fine of up to 100,000 euros) ensures timely and effective action due to the short-lived nature of most fictitious companies and the associated lack of tangibility of those responsible and assets.
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