Financial Crime World

Financial Police Launches Crackdown on Tax Evasion, Social Fraud

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Austria’s Financial Police has launched a series of large-scale operations across the country to combat tax evasion and social fraud. These regular monitoring activities involve diversions of traffic from main roads and motorways, establishment of checkpoints at strategic locations, and deployment of emergency vehicles with flashing blue lights.

Targeting Tax Evasion and Social Fraud

The Financial Police is targeting individuals suspected of tax evasion or social fraud, visiting them at their place of work or residence. The authority has been tasked with:

  • Securing tax claims
  • Collecting tax arrears
  • Executing confiscation orders

In addition to these tasks, the Financial Police is also responsible for regulatory measures, including:

  • Detection of illegal employment of foreign nationals
  • Control of companies’ compliance with labour market regulations
  • Enforcement of social security laws

Regulatory Measures and Investigations

The agency is tasked with detecting violations of various laws and regulations, including:

  • Austrian Anti-Wage and Social Dumping Act
  • General Social Security Act
  • Unemployment Insurance Act

It also investigates cases of:

  • Illegal trade practices
  • Social fraud under the Penal Code
  • Infringements related to national and international secondment of workers

Additional Responsibilities

The Financial Police can be tasked by tax authorities or the Criminal Matters Division of the AFO to carry out general supervisory measures, such as:

  • Controls and inspections
  • Obtaining information and relevant data for financial criminal proceedings

In cases of clear and present danger, the authority is entitled to take measures under the Austrian Fiscal Penal Code.

Judicial Missions

The Financial Police also conducts judicial missions, including investigations on suspicion of:

  • Withholding employee contributions to social security
  • Fraudulent withholding of social security contributions and surcharges
  • Organised illicit work

Goals and Collaboration

The operations aim to ensure compliance with tax laws and regulations, as well as protect the social security system from abuse. The Financial Police is working closely with other authorities to identify and prosecute individuals and companies involved in tax evasion and social fraud.