Wallner will probably not have to answer questions regarding the complicated tax law itself in the sub-committee. However, questions regarding handling the exam. Because both the state and the electricity producer illwerke/vkw are doing everything they can to avoid having to pay taxes. In the end with success. Files from the committee of inquiry that are available to the ORF show how much the country has tried to do this.
What are escheat rights?
That’s what it’s all regarding: the power plants are operated by illwerke/vkw, but they belong to the state. It is contractually stipulated that these power plants will eventually revert to the state – these are the so-called escheat rights. To ensure that the state does not do this, illwerke/vkw pay several million euros into the state budget every year. This money should be taxed, said the large-scale audit of the tax office. Illwerke/vkw saw things differently. And with the power plant operator also its owner – the state of Vorarlberg.
Great pressure on the tax office
No wonder, then, that the pressure on the tax office was great. A few examples: As early as 2014, an employee in the tax office wrote: “To clarify, I allow myself (…) any future interventions with Mr. Keeping the head of the section in check.” You should contact the tax office directly.
In October 2014, Finance Minister Hansjörg Schelling’s cabinet got involved. An employee wrote: “An audit was carried out at Vorarlberger Illwerke AG. Apparently, the findings made do not correspond in all points to the legal opinion of VIW (note: Vorarlberger Illwerke). The employee forwarded documents with the legal opinion of illwerke/vkw and asked for information on the procedure.
In January 2015, the same employee wrote once more to the section head in the Ministry of Finance: illwerke/vkw would complain that the large company auditors would always change their legal opinion. And the employee asked whether a representative from illwerke/vkw might contact the section head directly to make an appointment for a meeting.
The head of the section replied a few minutes later that additional appointments made no sense. He also denied these allegations. An employee of the Ministry of Finance also wrote: “I don’t think that a meeting in the Ministry of Finance is necessary.” And: “I also don’t think that one can speak of constantly changing legal views.”
Employee wanted to throw down
It went back and forth like that. Until one of the examiners finally had enough in May 2015. He writes to his superior: “I ask you to release me from further cooperation in this case.” In the attachment to the email he sends a statement that he sent to the public prosecutor’s office in Feldkirch in 2013.
In October, however, the employee was still entrusted with the test. However, he missed one meeting, as he complained to his superiors by email. He feared calculus: “Keeping me or both of us away from the meeting – whoever initiated it – obviously had the sole purpose of talking you down at the meeting in such a way that you prematurely agreed to such solutions.”
Governor reports to the Ministry
On December 23, Governor Markus Wallner reported directly to the department head in the ministry. “Enclosed I may send you a report from Dr. Josef Aicher, which Illwerke/vkw gave me,” he writes. After the first media reports on the cause, Wallner already confirmed that, as the owner’s representative, he represented the interests of the owner. He also appeared as such officially.
Lots of meetings, phone calls and emails
In the months that followed, there were repeated meetings, telephone calls and e-mails. Again and once more with the governor, as can be seen from an email exchange in July 2016. Also in July, illwerke/vkw boss Christof Germann tried to clarify the matter directly with the department head in the ministry.
However, a final discussion on the tax audit does not take place, as an employee in the tax office writes: an appointment for illwerke/vkw is only possible in September. Also in July there is talk of further meetings with Governor Wallner. The tax auditors have therefore submitted a compromise proposal to illwerke/vkw. Illwerke boss Germann would discuss this proposal with his expert. “After that he talks to LH Wallner”; writes the section chief of the Ministry of Finance to the large company auditors.
In September 2016, things are getting too colorful even for the head of the section. “He informed Director Germann that he will most likely withdraw from this case,” says an internal email within the investigators.
illwerke/vkw no longer wanted to talk to the auditor
In November 2016, illwerke/vkw had had enough, they no longer wanted to talk to the tax inspector. When the responsible examiner had further questions, the chief financial officer of the power plant operator wrote: The statements in the questions in no way correspond to what was discussed with the section head. “We will therefore report directly to the section head on the individual points.”
The illwerke/vkw complain that, in their opinion, there are “newly invented approaches on the part of the tax audit”. “We will therefore not take part in the meeting in the tax office in Feldkirch on November 22nd,” continues a representative of the electricity company. The group also complains directly to the head of the section, and Governor Wallner also receives this email.
The affected employee of the major inspection then reports. “I am somewhat surprised that the work of employees who have been working decently for the financial administration for over thirty years and who, despite massive personal attacks, have successfully worked off several “legacy issues” is now described as unacceptable.” Illwerke/vkw would have said themselves on the whole Procedure hardly moved. And he writes: “I have asked several times to release myself from further cooperation in this case.”
The interventions seem to be working: the head of the section increasingly shares the legal view of illwerke/vkw. In April 2018, another compromise will be proposed. The head of the section informs Germann and Wallner directly. A few days later, the head of the section wrote to a colleague: “LH Wallner called me today to say that they are unlikely to accept the proposal. But you will tell us that.” And three weeks later: “LH Wallner called me.” It’s regarding a similar case in Tyrol, which has to be evaluated. The head of the section continues: “I need a short reply by Wednesday evening because the minister has an appointment with LH Wallner on Thursday morning.” That will apparently take place on May 17, and illwerke/vkw boss Germann should also be there have been.
Head of section: “No intervention”
The cause is already a topic in the committee of inquiry. The said section head was invited on March 30th. And he remembers what happened. He speaks of an exciting question because escheat rights are an exception. “Individual large auditors have represented an extreme point of view,” he says. At a meeting, the joint legal assessment was then reached. Wallner actually only pointed out the problem to him. There can be no talk of intervention.
What happened is also reflected within finance. In January 2020, the former investigator in charge wrote to a colleague: “I have just spoken to the investigator at the time and we both agree that we are very happy that we are no longer involved in the case because we believe that this is a losing process can.”
