Entrepreneur Convicted of Tax Evasion After Securing EUR4 Million Mask Deal with Government

In Landshut, a businessman has been sentenced for tax evasion linked to a substantial contract during the COVID-19 pandemic. Harald L. sold face masks worth over four million euros to the Federal Ministry of Health but failed to remit the corresponding value-added tax (VAT). This case has drawn attention from the European Public Prosecutor's Office due to its financial implications.

The Landshut District Court found Harald L. guilty of VAT evasion, resulting in a sentence of one year and ten months in prison. However, this sentence has been suspended, allowing the entrepreneur to remain free while on probation.

Harald L. operates a trading company based in Hong Kong, which is not registered for tax purposes in Germany. He neglected to file VAT returns, a significant oversight that has resulted in legal repercussions.

In December 2022, during the peak of the pandemic, L. issued an invoice to the Federal Ministry of Health for FFP2 masks totaling EUR4.045 million. This invoice included approximately EUR646,000 in VAT that he was legally obliged to report and pay to the tax authorities in Berlin-Neukölln, but this requirement was not fulfilled.

Initially, the investigation suggested a potential tax loss of EUR1.9 million; however, as one charge was dropped, L. was ultimately held accountable for nearly EUR650,000 in unpaid VAT.

Throughout the trial, L. expressed remorse for his actions through his defense attorney, stating that he deeply regretted his misconduct. He had previously spent four months in custody before being released on bail set at EUR650,000. L. has since settled his tax liability and, as part of his sentencing conditions, is required to make a EUR100,000 donation to a children's hospital.

The verdict is not yet final, and further developments may arise as the case progresses through the legal system.