New Buwog Indictment: Prosecutors Charge Grasser and Two Lobbyists with Tax Evasion in the Millions

The Republic suffered tax damage totaling approximately 4.9 million euros as a result. According to the indictment, the three defendants allegedly "aktiv und wechselseitig unterstützt" each other. The WKStA emphasizes that the current indictment "ausschließlich die Frage der Versteuerung" of the already court-established financial flows concerns.

For the underlying bribery and breach of trust actions, the defendants have already been finally convicted and sentenced to prison terms. The Supreme Court (OGH) established that approximately ten million euros in "Schmiergeldern" flowed in these transactions. Grasser was finally convicted by the OGH at the end of March 2025 for breach of trust and acceptance of gifts by public officials and sentenced to four years of unconditional imprisonment.

Background: The Buwog Conviction

The Buwog case concerns the privatization of federal housing in 2004, in which the Republic suffered damages of 4.9 million euros. Grasser and his co-defendants allegedly collected a commission totaling 9.6 million euros for this. In the current proceedings, the focus is exclusively on the tax-related processing of these financial flows.

Defense Reviews Double Jeopardy Prohibition

The defense immediately announced legal action. Norbert Wess, Grasser's defense attorney, told the STANDARD: "Wir prüfen derzeit, ob die gegenständliche Angelegenheit nicht allenfalls gegen ein Doppelbestrafungs- und/oder Doppelverfolgungsverbot verstoßen könnte, da die nunmehrige Anklage letztendlich ein- und denselben Lebenssachverhalt betrifft, nämlich den Buwog Sachverhalt." Speaking to the KURIER, Wess stated: "Wir haben die Anklage heute zugestellt bekommen und prüfen derzeit, ob diese Anklage nicht gegen ein Doppeltverfolgungsverbot verstößt, weil es sich um ein und den selben Sachverhalt handelt".

Penalty Range: Up to 9.8 Million Euros Possible

The WKStA rejected the defense's concerns regarding a voluntary disclosure ("Selbstanzeige"). "Eine Selbstanzeige befreit laut Gesetz aber nur dann von einer Strafe, wenn man den Sachverhalt rechtzeitig, vollständig und wahrheitsgemäß offenlegt. Dies ist nach Ansicht der Staatsanwaltschaft in diesem Verfahren jedoch nicht zutreffend und konnte daher nicht strafbefreiend gewertet werden", the authority explained. Accordingly, a penalty-relieving effect of the voluntary disclosure does not come into consideration.

The penalty range for tax evasion is substantial: According to the WKStA, a fine up to twice the amount of the tax shortfall is threatened, which in this case corresponds to up to 9.8 million euros. A prison sentence of up to two years is also possible. For tax evasion of this magnitude, severe sanctions are to be expected.

Grasser's Financial Situation

Parallel to the new indictment, private bankruptcy proceedings are ongoing against Grasser. According to reports, the former finance minister is sitting on a mountain of debt totaling 34 million euros, of which he owes 8.5 million euros to the tax authorities alone. In his private bankruptcy proceedings in April, claims totaling 23.1 million euros were negotiated. At the end of April 2025, Grasser had filed for private bankruptcy and originally intended to settle his debts through a cash quota of 3 percent within two weeks.

According to his own statements, Grasser has already paid approximately 1.3 million euros in taxes, which only partially offsets the total amount of his tax debt. The 57-year-old from Carinthia is currently working in Kitzbühel in Tyrol. At the beginning of 2026, he received an electronic ankle bracelet and has since been serving his sentence under electronically monitored house arrest.

The Buwog case is considered one of the largest corruption scandals in Austrian post-war history. The original conviction encompassed bribery and breach of trust in connection with the Buwog privatization and the Terminal Tower lease. With the new indictment, another chapter of legal proceedings is now added, focusing on the tax consequences of the already proven bribe payments.

Observers see the new proceedings as a precedent for the criminal prosecution of tax evasion in the context of already adjudicated corruption offenses. The question of whether the new indictment violates the double jeopardy prohibition may ultimately need to be clarified by higher courts.

Walter Meischberger and Peter Hochegger, both known as former lobbyists, had already been convicted in the original proceedings. The three defendants must now answer in court again, this time for the tax side of the already proven bribe payments.

Outlook on Further Proceedings

The WKStA had led the investigation into whether the commissions from the Buwog and Terminal Tower cases totaling 9.8 million euros had been properly taxed. After the conclusion of the investigation, the indictment was now filed. An advisory council was consulted before the indictment, as stated in the announcement.

The date for the main trial in the new proceedings has not yet been set. In the meantime, the defense attorneys must formally raise their objections to the indictment. The Buwog case will continue to occupy the Austrian judiciary for years to come – with each new procedural step, the complexity of the case becomes more apparent.

Overall, the development shows that the judiciary is processing the financial entanglements surrounding the Buwog privatization with great persistence. Even though the core charges of bribery have already been finally resolved, tax-related questions remain open and are now to be clarified in a separate proceeding. The defense announced that it would exhaust all legal means.