Former government official faces legal charges for systematic tax evasion in gambling establishments.
In Braunschweig, a trial has been going on since Tuesday, surrounding a potentially corrupt former city inspector. The 69-year-old ex-employee is currently up in court, accused of aiding gaming hall owners in tax evasion between 2012 and 2015. He is alleged to have received compensation in return.
Unrecorded Revenue of €3.6 Million
During this time, the defendant was the only official accountable for recording gaming tax in Braunschweig. He was responsible for logging slot machine ticket strips and adjusting gaming tax registrations with the gaming hall operators.
The modified adjustment led him to input lower amounts into the database. As a result, a €3.6 million player turnover was unrecorded, resulting in a loss of over €700,000 in tax income for the city of Braunschweig.
According to regionalheute.de, this situation occurred in at least 140 cases, and the defendant received bribes of at least €72,400 for tax fraud. There were also favors, like clearing drink debts.
Strict German Gaming Hall Regulations
Regulations are tightening for gaming hall operators in Germany, leading more to close their operations. Besides regionally varying gaming taxes that can reach double-digit percentages, legal gaming hall operators must also pay value-added tax. Meanwhile, gambling on the internet is taxed at a flat rate of 5.3%, making it more lucrative.
Hall operators who adhere to regulations can only provide players with lower jackpot quotas than what's possible in the black market, where taxes are evaded and player protection measures are nonexistent.
Subject matter experts question if tax reductions might be a solution but leave that decision to politics.
Confession Reveals More Corruption Details
The defendant has since admitted to the corruption charges, despite claiming serious illness at the initial trial. His confession has put more pressure on gaming hall operators, who so far have reimbursed €542,000 in tax arrears. It remains unclear whether this repayment is the only obligation or if additional penalties are yet to follow.
The Braunschweig public prosecutor is determined to uncover who else took part and how much money flowed in the scheme. The next court hearings are set for June 3rd, 17th, 20th, 27th, and July 2nd.
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