Million-euro fine against Zurich hotelier Schwarzenbach confirmed
Published: Thursday, Aug 15th 2024, 12:00
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The art collector and financier Urs E. Schwarzenbach has been finally sentenced to pay a fine of around CHF 7.1 million for multiple VAT evasion. The Federal Supreme Court dismissed his appeal. Schwarzenbach's lawyer and the co-owner of Galerie Gmurzynska were also not acquitted as requested.
In a decision published on Thursday, the Federal Supreme Court confirmed the fine of around CHF 1.4 million for the gallery owner. Only in the case of Schwarzenbach's lawyer was it reduced from a good 2 million to not quite 1.8 million. The gallery owner and lawyer must also pay the unpaid VAT of CHF 7.7 million and CHF 4.8 million respectively, whereby they are jointly and severally liable for these amounts. Schwarzenbach has paid his share.
The Federal Supreme Court confirms the findings of the Zurich High Court that the three convicted persons used an unlawful procedure when importing works of art from the Dolder owner between 2008 and 2013.
About offshore companies
The gallery had been commissioned by Schwarzenbach's offshore companies with simulated commission contracts to sell the imported works of art. This procedure meant that no VAT was due, as would otherwise be the case with an import.
However, according to the court, the art collector never intended to sell the works. Rather, he wanted to exhibit them permanently in the Hotel Dolder, in St. Moritz and elsewhere. The Federal Supreme Court considers this to be established. The three men recorded their actions in a memorandum in October 2007, which was seized during subsequent house searches.
The Federal Supreme Court also rejected the complaints of the three appellants that the time limits for initiating and conducting the investigation were time-barred.
In recent years, financier Schwarzenbach has been involved in numerous legal disputes in connection with the import of works of art and tax issues. This summer, the Zurich tax authorities confirmed that all of Schwarzenbach's outstanding tax matters had been resolved. (Judgments 6B_1360/2022, 6B_1362/2022 and 6B_1378/2022 of 22.7.2024)
©Keystone/SDA
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