Cash register obligation

All businesses are obligated to assess their cash ear- nings with an electronic (tamper proof) cash register. This applies to all business unites with a turnover > EUR 15,000 AND a cash turnover > EUR 7,500 (cash turnover = cash, payment, payment via debit or credit card, vouchers, payment via phone, etc.).

Cash registers must have a certain safety device.

Under certain circumstances facilitations apply (turnover generated outside business premises, vending machines, webshops, etc.). If a cash register is used, an annual receipt must be created at the end of each calendar year, which must be electronically checked by February 15 of the following year.

Receipt issuing obligation

All businesses are obligated to hand out receipts to their customers in case of cash sales (independent of the cash register obligation). Customers are supposed to accept the receipt and keep it until they leave the business premises.

The receipt has to display the following information:

• explicit name of the supplier
• serial number
• date of the receipt
• amount supplied and commercial designation
• amount due

Compulsory single record

Taxpayers are obligated to record every single cash sale individually.

• in case of accounting and voluntarily bookkeeping: all cash earnings and cash payments have to be recorded individually on a daily basis
• in case of cash basis accounting or statement of excess of revenues over expenses: all cash sales have to be recorded individually.

Under certain circumstances facilitations apply (turnover generated outside business premises)

Directory of bank accounts and disclosure of bank accounts

Establishment of a directory of bank accounts: register of all bank accounts (also savings books and stock deposits) of individuals and enterprises. Financial insti- tutions are obliged to transfer the data (bank balances and account movements are not apparent).

Disclosure of bank accounts is a subsidiary measure. Only applicable in case the entire circumstances can’t be determined with help of the taxpayer or in case of reasonable doubt regarding the accuracy of the data supplied. It has to be granted by resolution of a single judge of the Federal Fiscal Court (BFG).

Register of economic owners

Disclosure of data concerning the (direct or indirect) economic owners of certain entities (especially certain companies, foundations and trusts). Starting from 10.1.2020 publicly available for a fee.

In case of a violation of the reporting obligations, penalties up to EUR 200,000 can be charged.

Reporting obligation for cross-border arrangements

"Potentially aggressive, cross-boder tax arrange- ments", where the main purpose is to achieve a tax advantage, have to be reported from mid-2020 onwards. The tax arrangement must show certain hallmarks according to the new directive. A violation of the reporting obligation can lead to penalties of up to EUR 50,000.

Capital Outflow Reporting Act

Capital outflows ≥ EUR 50,000 of bank accounts or deposits of an individual have to be reported (apart from bank accounts of enterprises).

Advance rulings (binding agreements)

Binding evaluation by the appropriate tax authority of a situation not yet realized, is possible for reorgani- zations, company groups, transfer prices, VAT, international tax law and abuse. (with costs of max. TEUR 20 per person and situation); since 1.7.2019: the assessment must be issued within two months

Horizontal Monitoring

instead of tax audits horizontal monitoring by the tax authority (on request); generally tax audit at the begin- ning of the horizontal monitoring

Requirements:

• taxpayer with annual revenues > EUR 40 million (no minimum revenue for banks and insurance companies)
• no financial criminal offence in the last five years
• tax control system established and reviewed by tax advisor or auditor

Penalties for late payment

Default penalty 1–2 % Penalty for delay up to 10 %

Late payment interest on back payments of personal and corporate income tax beginning after September 30 of the subsequent year Interest and penalties less than EUR 50 are not assessed

Criminal provisions

Fiscal Penalties Act and Corporate Responsibilities Act

Tax offense	Penalty up to (in principle)	Imprisonment up to (exceptional)
Breach of tax regulations	50 % of tax evaded	None
Grossly negligent tax evasion	100 % of tax evaded	None
Tax fraud	200 % of tax evaded	4 years
Gang tax fraud (tax evasion up to TEUR 100)	300 % of tax evaded	3 months
Tax offense	Imprisonment up to (in principle)	Additional fine up to
Tax fraud (tax evasion over TEUR 100) In syndicates	10 years	EUR 2.5 million EUR 8 million
Gang tax fraud (tax evasion over TEUR 100) In syndicates	5 years	EUR 1.5 million up to 3 times of tax evaded
Cross-border VAT fraud In syndicates	10 years	EUR 2.5 million EUR 8 million

In part also penalties for the following tax offenses

• Gang, violent acting/smuggling
• accessory after the fact with regard to taxes and evasion of customs clearance
• prohibited tobacco manufacturing
• wilful interference or grossly negligent with a state monopoly or accessory after the fact with regard to monopolies
• failure to fulfil the obligations regarding cash transactions

Annulment of penalties

Annulment of penalty in special cases: Possible in case of tax audits – limit EUR 10,000 per fiscal year or EUR 33,000 for the entire period under tax audit. Implication: Evasion surcharge of 10 %

Corrected return

Corrected return:

Evaded taxes must be paid, otherwise no relief from penalty (also applies in case of insolvency). Repeated corrected returns for the same tax debt is not possible. Penal surcharges are between 5 % and 30 % for corrected return after the announcement but before the commencement of the tax audit.

Payments in connection with corrected returns for self calculated taxes (e.g. VAT, tax on wages) are due within one month after filing of the corrected return. In all other cases the payment period (one month) starts with issuance of the tax or liability notice. Payment can be postponed through request for deferral of payment for up to 2 years.

Court proceedings apply for evaded taxes exceeding TEUR 100.

Anti wage- and social dumping

In case employees are paid with too little wages (including overwork premiums, extra pays, supple- mentary payments just like 13th and 14th salaries) in respect to collective agreement and/or law, a criminal underpayment is to be considered.

This is also true for foreign employees seconded to Austria for work activity.

Austrian authorities have to be notified in advance about the activity of foreign employees in Austria.

Certain wage related documents (e.g. secondment notification, A1 form) have to be presented in case of an audit (this is also true for the legal employer and the economic employer in case of staff leasing).

Penalties for each offence range between EUR 1,000 up to EUR 20,000 per underpaid employee.

Exceptions from these regulations exist interalias for low scope activities of foreign employees seconded to Austria for a short period (e.g. attending business meeting without providing additional services).