Mask scandal: Did Palmers evade 700,000 euros in taxes?

Mask scandal: Did Palmers evade 700,000 euros in taxes?

A year and a half after the mask scandal broke at Hygiene Austria – at that time a joint venture between the textile group Palmers and the fiber manufacturer Lenzing – there are now new allegations. As reported, the company admitted in March 2021 that it had produced some masks in China and relabeled them as “Made in Austria”. As a consequence, Lenzing withdrew from Hygiene Austria as the main shareholder – OÖN reported. So much for the history.

Serious allegations

A good six months after Lenzing left the company, Hygiene Austria was searched again in September 2021. Other locations that are or were connected to the company were also targeted by the corruption hunters and customs investigators. The officials also knocked on the door of the owner Palmers and ex-co-owner Lenzing. Now it has become known what this second raid was about. As the standard reports online, there are serious allegations. According to documents available to the standard, Palmers is said to have evaded at least 693,000 euros in customs and import sales tax. On the other hand, there are 37 million FFP2 masks from China that Palmers transported to Austria – probably for Hygiene Austria.

From China via Germany to Austria

According to a media report, after the masks were manufactured in southeast China, they were first delivered to Frankfurt by an internationally operating shipping company before they came to Austria. The same company then took care of the customs clearance there “as a representative” of Palmers Germany. According to the accusation in the search warrant, the “artificially low Chinese outgoing invoices” then reduced customs duties significantly. The investigators assume that the value of the goods is 40 percent higher than stated.

Palmers denies allegations

Palmers vehemently denies all allegations. “There was no evasion of customs duties and no artificially low outgoing invoices from China,” the Standard said in a statement. “All deliveries were correctly declared – with the actual value of the masks.” Hygiene Austria also denied it. The accusation that the masks had a 40 percent higher goods value is seen as “unrelated to the market” and is argued with the high number of 37 million. The prices would vary greatly for such large quantities, it is said.

Source: Nachrichten

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