Tax evasion and social security contributions: Suspended sentence for aiding and abetting in Hesse - Construction Boss Gets Suspended Sentence for €4.3M Tax and Social Security Fraud
A 33-year-old managing director of a construction company has received a suspended prison sentence for his role in a large-scale tax and social security fraud. The court ruled that his actions led to tax losses of over €650,000 and evaded social security payments totalling more than €3.2 million. The case highlights the growing crackdown on financial crimes in Germany's construction sector.
The defendant, who headed a construction firm, supplied fake invoices to another businessman. These documents allowed off-the-books payments to workers, bypassing tax and social security obligations. The scheme caused significant harm, with the construction industry's social welfare fund losing over €1.1 million.
Over the past five years, German authorities have stepped up efforts to combat such fraud. The Finanzkontrolle Schwarzarbeit (FKS) has used specialised task forces and digital tools to improve detection rates. Annual reports from the Federal Ministry of Finance show a 15-20% increase in prosecuted cases between 2021 and 2026.
The court handed down a two-year suspended sentence for aiding tax evasion and failing to pay social security contributions. The ruling reflects the severity of the offences, which involved large-scale financial deception and systemic non-compliance with legal obligations.
The suspended prison term follows a pattern of stricter enforcement against financial fraud in Germany. The case resulted in over €4.3 million in combined losses from unpaid taxes and evaded social security contributions. Authorities continue to target similar schemes as part of broader efforts to strengthen compliance in high-risk industries.
