Hamburg's Federal Bank reconsiders the ruling of the Court of Justice.
**German Football Association (DFB) Appeals Tax Evasion Fine Following Landmark Verdict**
The German Football Association (DFB) has announced its intention to appeal a 110,000 euro fine imposed by a regional court in Frankfurt for tax evasion, following a landmark verdict on June 25, 2023. The four-week trial, which concluded on its 34th day, saw the DFB found guilty of intentionally evading taxes amounting to approximately 2.7 million euros in relation to a payment made in April 2005.
Presiding Judge Eva-Marie Distler stated during the verdict announcement that it is beyond doubt that the DFB evaded taxes, and the parties involved knowingly accepted this. The proceedings were not about any specific tax evasion related to the 2006 World Cup revenues, but rather to the 2005 payment to FIFA.
The payment, amounting to 6.7 million euros, was transferred to a Robert Louis-Dreyfus account and corresponded to the ten million Swiss francs that Franz Beckenbauer had received from the French entrepreneur in 2002. The exact purpose of the money was never clearly determined, but it was suspected to be part of a bribery scheme to secure votes for the 2006 World Cup hosting rights.
The DFB was not convicted of causing overall tax damage to the state, but rather of a tax-related issue related to the 2005 payment to FIFA. The DFB explained in its statement that, according to the court's view, the tax deduction should have been made in 2002.
The public prosecutor's office had demanded a fine of 270,000 euros for the alleged tax evasion, but the court ultimately imposed a fine of 130,000 euros, with a 20,000 euro reduction due to "unconstitutional procedural delay". The DFB will assess the further procedure after receiving and evaluating the written reasons for the judgment, which the Regional Court has several weeks to issue.
Proceedings against three former high-ranking DFB officials—Theo Zwanziger, Wolfgang Niersbach, and Horst R. Schmidt—were dropped after they paid fines ranging from 10,000 to 65,000 euros. None of these officials were present at the end of the trial.
Judge Distler emphasized that the DFB presented a "disastrous picture" in the investigation. The DFB, however, maintains that it fully declared and taxed its income from the 2006 World Cup, but the court's ruling was based on specific tax years. The German Football Association has now filed an appeal against the fine with the Federal Court of Justice.
The German Football Association (DFB) is seeking to overturn a 110,000 euro fine for tax evasion related to a 2005 payment to FIFA, as they believe the tax deduction should have been made in 2002. With the appeal, they aim to clear their name in the ongoing controversy surrounding the use of funds in sports services, particularly in relation to the 2006 World Cup.
