"Disastrous Management" in the Summer Fairy Tale: DFB Faces Heavy Fine for Tax Evasion
Football club in Germany facing financial penalty
Social Media Share:Facebook | Twitter | WhatsApp | Email | Print | Copy Link
Final Verdict: The German Football Association (DFB) has been found guilty of tax evasion and will be hit with a hefty fine of €110,000. The once-accused trio - Theo Zwanziger, Wolfgang Niersbach, and Horst R. Schmidt - are no longer defendants following the Summer Fairy Tale trial.
The 34th and final day of the Summer Fairy Tale trial concluded with the Frankfurt Regional Court slapping the DFB with a €110,000 fine for tax evasion. The presiding judge, Eva-Marie Distler, decisively stated that the DFB's tax evasion was undeniable. The initial three defendants were dropped from the trial's list by the end.
The public prosecutor's office claimed the DFB intentionally evaded tax payments amounting to approximately €2.7 million in relation to the 2006 World Cup scandal. They demanded a penalty of €270,000, citing a high level of criminal intent.
"The DFB's act of tax evasion is, in this court's view, far from ambiguous," Distler asserted, explaining the verdict. The DFB was initially penalized €130,000, but the fine was reduced due to the "unconstitutional duration of the proceedings," with €20,000 waived. However, the DFB is liable for the cost of the proceedings.
DFB Remains Unapologetic
The DFB stood firm in their assertion of innocence. DFB lawyer, Jan-Olaf Leisner, stated on the last Monday during the trial that there was no evidence of tax evasion. He argued that the tax office did not suffer any financial loss but instead gained a 650,000 euro interest advantage.
As a result of the conviction, the DFB's hopes of receiving a €22 million tax refund dwindle. The sum was repaid by the DFB in 2017 following the withdrawal of its tax-exempt status for 2006 due to the World Cup affair. The DFB filed a lawsuit against this decision at the Finance Administration Court in Kassel but has yet to receive a ruling.
At the heart of the trial was the DFB's transfer of €6.7 million to FIFA in April 2005. This amount mirrored the 10 million Swiss francs that Franz Beckenbauer received from French entrepreneur Robert Louis-Dreyfus in 2002. The DFB concealed their repayment of the loan as a contribution to a planned World Cup opening gala, which ultimately got canceled, and reported it as a business expense the following year.
Sources:- ntv.de- Eric Dobias- dpa
Enrichment Data:
- The tax evasion case surrounding the German Football Association focused on allegations of the DFB intentionally avoiding €2.7 million in taxes related to payments connected with the 2006 World Cup hosted by Germany. The high-profile trial unfolded over 34 days at the Frankfurt Regional Court.
- The affair, known as the "Sommermärchen" (Summer Fairy Tale) trial, revolved around the DFB's financial dealings during the 2006 World Cup. The public prosecutor's office demanded a fine of €270,000, while the court imposed a reduced fine of €110,000. The DFB was ordered to pay the costs of the trial as well.
- The trial disclosed important details about a significant payment of €6.7 million involved in the scandal, although the specific nature and details of this payment were less clear in publicized reports.
- In summary, the DFB's mishandling and illegal evasion of taxes related to the 2006 World Cup revenues led to a court ruling that confirmed the evasion and resulted in a monetary penalty for the federation. The affair revealed a catastrophic image of the DFB's management of the World Cup's financial and legal aspects.
- The German Football Association (DFB) is now subject to a €110,000 fine under the community policy for tax evasion, following the conclusion of the Summer Fairy Tale trial.
- Despite the verdict, the DFB continues to maintain its innocence, having initially refuted any allegations of tax evasion during the trial.
- Amidst this controversy, discussions surrounding the DFB's employment policy, particularly in relation to finance and taxation matters, now find a prominent place in the general-news and crime-and-justice sections, as well as sports, football, and European leagues.
