Back in court – Grasser tax trial starts next Monday

This time, Judge Michael Tolstiuk, who has led several major economic cases in recent years, is in the chair. In courtroom 203 of the Vienna Criminal Court, Grasser will in any case meet with acquaintances next Monday: the two chief prosecutors Gerald Denk and Alexander Marchart, who already represented the prosecution in the Buwog trial, as well as his then lawyer Norbert Wess, who tells him. also legally friendly in the tax case.

In addition to Grasser, his then tax adviser, who is accused of creating a cover-up, must answer as another defendant.

Up to two years in prison
The allegation in the tax criminal case is that Grasser did not declare millions of commissions from his activities for Meinl Power Management in his income tax return and that he paid too little tax. According to the indictment, the tax cut caused is about 2.2 million euros. The criminal framework provides for a fine of up to twice that amount, or up to 4.4 million euros. In addition to the fine, a prison sentence of up to two years can also be imposed. Grasser denies the allegations.

The investigation was initially aimed at eight suspects (six individuals and two associations). The investigations were “extremely complex and extensive, partly due to a widespread foundation structure with a large number of foundation contracts and international relationships to be analysed,” said the Public Prosecution Service for Economic Affairs and Corruption (WKStA) in the indictment.

Grasser joined the Meinl business empire in 2007 as manager following his tenure as Treasury Secretary in two governments led by Chancellor Wolfgang Bowl (ÖVP). Meinl Power Management Ltd. (MPM), based on the Channel Island of Jersey, was the management company of Meinl International Power (MIP), which went public in 2007. Grasser was involved with MPM, as was Meinl Bank. Grasser retired from the company in 2009.

This was preceded by a protest from shareholders and the first general meeting of MIP in May 2008 was already turbulent. Meanwhile, the price of MIP certificates, which had fallen from nine euros to less than five euros since the IPO in mid-2007, was not very encouraging. Nearly a year after the first general meeting, Grasser announced that he would sell his third-party stake in MIP.

word to word
13 years later, the court is trying to clarify whether the MIP sales commissions are attributable to Grasser and whether he is personally liable for tax – that is not how the ex-Finance Minister sees it. He says he relied completely on his advisor, while the latter claims that Grasser adapted the design himself. This concerns commission income of 4.38 million euros from Meinl commissions, of which Grasser would have evaded 2.16 million in taxes.

For the first accused in the Buwog-Causa, Grasser, the jury panel under Judge Marion Hohenecker sentenced to eight years in prison — not final. The appeal procedure for the first instance decision will not take place until next year.

At the oral verdict in the Vienna criminal court, Hohenecker told the former finance minister: “An honest business person does not need accounts in Liechtenstein.” Grasser, in turn, told reporters after the verdict: “You see, I am sad and shocked. This verdict is beyond anything I could have imagined.”