Judgement Confirmed in Mask Affairs Tax Evasion Case
The Federal Court of Justice (BGH) has upheld the convictions of two defendants implicated in a tax evasion scheme connected to the controversial “Masks Affair” that emerged during the COVID-19 pandemic. The court’s decision, announced Friday, confirms lower court rulings and establishes a definitive outcome in a case that has drawn significant public attention.
Defendant T. has received a total prison sentence of four years and five months, while defendant N. was sentenced to three years and nine months.
According to findings by the Munich I Regional Court, the defendants, through their company, generated approximately €48 million in commissions for brokering deals related to the supply of medical protective masks. Defendant T. leveraged her contacts with high-ranking officials within the Christian Social Union (CSU) political party as part of the scheme. She had falsely requested a reduction in advance income tax payments and failed to correctly account for the commissions, resulting in a tax shortfall of roughly €3.7 million.
Further complicating the case, the defendants provided false information, claiming their company’s headquarters were located in Grünwald, to benefit from a lower trade tax rate. This action led to an additional tax loss of nearly €4.2 million.
The Federal Court of Justice has, however, discontinued proceedings concerning the alleged evasion of advance income tax payments. The court determined that existing findings do not support a conviction on this charge and that pursuing the matter would require an unduly burdensome and extensive re-examination. The convictions related to the trade tax evasion, however, remain legally binding.
