Germany's
Federal Court of Justice has ruled that people found guilty of severe tax fraud
must face prison terms.
Germany's
Federal Court of Justice (BGH) ruled Tuesday that defendants found guilty of
evading at least 1 million euros ($1.31 million) in taxes would in future
almost invariably face prison terms.
The court
acted on a revision appeal by prosecutors after a regional court in Augsburg
handed down a suspended sentence to a 60-year-old German who'd misreported 1.1
million euros.
The man in
question was a partner in two companies which were sold to a joint stock
company in 2001.
Fraud
intended
The
defendant received some 15 million euros from the sale, plus company shares. He
also remained managing director in one of the firms and in this capacity
received 570,000 euros in royalties in 2006.
The
businessman partly misreported his earnings and wrongly declared part of the
royalties as an endowment. As a result, he became subject to a lower taxation
category, meaning he had to pay 1.1 million euros less in taxes.
"Tax evasion
is no longer a trivial offense," said Federal Public Prosecutor Wolfgang
Kalf, commenting on the ruling in Karlsruhe.
The
businessman's case will now have to be reopened at the regional court in
Augsburg.
Author:
Hardy Graupner (dapd, dpa)
Editor: Martin Kuebler
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