Kitzbühel, Austria – The prestigious Hahnenkamm races in Kitzbühel, held at the end of January, have led to a financial crackdown, with authorities uncovering multiple legal violations. The Austrian Ministry of Finance announced on Thursday that financial police imposed fines totaling around €100,000 on several companies following routine inspections.
Italian Security Company Faces Major Penalties
One of the most severe cases involved an Italian security company that failed to provide valid posting papers and refused to cooperate with inspectors. The bulk of the fines—approximately €100,000—was levied against this company. Austrian authorities have launched further investigations in collaboration with their Italian counterparts over suspected underpayment and tax evasion.
Taxi Companies and Construction Workers Also Under Scrutiny
The inspections extended beyond security firms, targeting taxi companies and workers involved in event construction. Financial police examined 72 employees across 11 companies, uncovering several compliance breaches.
Among the cases, a British national was found to be in Austria illegally. He was immediately handed over to the police and arrested. His employer, a company specializing in tent construction, was fined €2,400 under the Foreigners Employment Act.
Meanwhile, a Dutch company faced penalties for failing to present proper social security registration for its employee. This resulted in four fines totaling €4,000, with tax authorities set to conduct further assessments.
Authorities Tighten Controls on Cross-Border Business Practices
The Austrian Ministry of Finance emphasized its commitment to cracking down on illegal employment practices, ensuring compliance with labor laws, and preventing tax evasion. With increased cooperation between European financial and labor authorities, stricter enforcement measures are expected in future high-profile events.
The Hahnenkamm race, a highlight of the Alpine skiing calendar, not only attracts sports enthusiasts but also generates significant economic activity. However, as recent inspections reveal, it also presents opportunities for labor law violations, prompting authorities to maintain rigorous oversight.
What’s Next?
With ongoing investigations into underpayment and tax fraud, more penalties may follow. The Austrian government is urging companies operating at major events to adhere strictly to employment and taxation laws to avoid financial and legal consequences.
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