Financial Criminal Law in Austria: Understanding Penalties for Tax Evasion and other Financial Crimes

In the intricate world of finance, ignorance of the law is not an acceptable excuse. Below, we delve into the complexities of financial criminal law, focusing on tax penalty offenses such as tax evasion and smuggling, and the severe consequences that ensue.

Consequences for Financial Criminal Offenses

Financial criminal law refers to legislation governing tax penalty offenses. Violations in this area can lead to substantial penalties:

• Heavy fines: An acceptable consequence for those found in breach of financial criminal laws.
• Alternative custodial penalties for non-payment: Imprisonment remains a potential outcome for those unable or unwilling to pay imposed fines.

Penalties for Specific Financial Offenses

Certain financial offenses are handled by specific courts:

Section 39 - Tax Fraud

Convictions under Section 39 of Austria’s Financial Criminal Code (tax fraud) result in unconditional imprisonment.

Financial Offenses with Penalties Above €33,000

For financial offenses with penalties exceeding €33,000, the appraisal court becomes involved. This court comprises of a judge, a financial official, and a lay associate judge, often representing the defendant’s professional organization or the Austrian Federal Economic Chamber. The appraisal court also handles:

• Negligent tax evasion under Section 34 of the Financial Criminal Code
• Financial offenses per Section 49

Jurisdiction and Penalty Values

The jurisdiction and penalty procedures vary depending on the penalty value:

• Financial offenses with penalty values below €33,000: Handled by the financial administration.
• Financial offenses with penalty values between €33,000 and €100,000: The above-mentioned appraisal court is responsible.
• Financial penalties above €100,000: These are subject to administrative penalty procedures before financial penalties officers or the appraisal court, while judicial financial criminal proceedings are conducted by ordinary criminal courts.

Repercussions of Financial Penalties

The financial penalty aspect has grown increasingly important due to its significant repercussions:

• High fines: Create substantial issues for associate entities.
• Criminal records: Penalties often lead to criminal records for offenders.
• Imprisonment or alternative custodial penalties: If fines remain unpaid, imprisonment or other alternatives may be imposed.