Multi-million-dollar tax fraud linked to the brewing industry - Criminal proceedings for beer-related tax avoidance scandal
A new trial for organized tax evasion related to beer fraud has begun at the Hamburg Regional Court, with a 34-year-old Moldovan suspect facing charges. The alleged tax evasion activities are said to have started as early as August 2016.
The international gang, of which the defendant is accused, aimed to evade consumption taxes on beer in France. The beer shipments, intended for sale in France and the UK, were exported from France to Hamburg on paper to pay the lower tax in Germany. However, in reality, the beer was intended for the black market in France and the UK.
The defendant is charged with tax evasion in 117 cases, accused of joining forces with other co-defendants, some of whom have already been convicted. The prosecution alleges that the defendant served as the "right-hand man" of the main culprit.
In an opening statement, the defendant's lawyer, Viktor Bach, rejected the allegations, stating that his client was not a key figure in the gang. Another defense lawyer, Jan Schürmann, explained that the prosecution must prove the defendant's intentional conduct to secure a conviction. He further added that only the defendant's intentional conduct can be punished.
Three men were previously sentenced to multi-year prison terms by the Regional Court in July 2018 for their role in the same tax fraud case. The verdicts for these men are now final.
The economic crimes chamber has scheduled 18 further dates until November 12 for the trial. The defendant remains silent on the allegations.
Beer tax is a harmonized consumption tax within the EU, levied in the country where the drink is sold. This case serves as a reminder of the complexities involved in cross-border tax evasion and the efforts of authorities to combat such activities.
As the trial continues, the public awaits the court's decision on the fate of the Moldovan suspect and the resolution of this significant tax fraud case.
- The community policy on combating cross-border tax evasion should outline strategies to address cases like the ongoing organized tax fraud related to beer fraud, as illustrated by the trial at the Hamburg Regional Court.
- The employment policy for tax authorities involved in general-news, crime-and-justice related cases such as this tax evasion trial, requires thorough investigative skills and knowledge of business finance to ensure the prosecution of such crimes.
