More tax justice means social progress
Enquiry for fair competition- strategies against tax fraud and wage dumping
On Tuesday, the Ministry of Finance and the Ministry of Labour and Social Affairs hosted an enquiry into fair competition, discussing strategies to combat tax fraud and wage dumping. The aim was to analyse existing measures and consider further effective solutions with practitioners, interest groups, and political decision-makers.
'If we succeed in implementing fair taxation, it will represent social progress,' said Finance Minister Markus Marterbauer at the start of the event. 'Of course, combating tax fraud is important for the budget. However, the most important purpose is to give the vast majority of honest taxpayers the feeling that everyone has to contribute, and that nobody can find ways to evade taxes with impunity. By taking consistent action against tax fraud, we protect those who pay their taxes honestly. This strengthens the sense of fairness.'
Labour and Social Affairs Minister Korinna Schumann also emphasised the importance of fairness in her speech. 'Anyone who performs work must also be fairly remunerated for it,' she said. Last year, 1.88 million euros in penalties were imposed for underpayment. 'Wage and social dumping has serious consequences in several respects. Firstly, for employees, and secondly, for many entitlements, such as pension levels, unemployment benefits, and benefits relating to the birth of a child. This money is also missing from private consumption. At the same time, the State is losing revenue needed to maintain the welfare State. Last but not least, honest companies are at a competitive disadvantage.' This makes it all the more important that wage and social dumping does not go unpunished, says Schumann, referring to the legal situation that has been in force since January 2026. According to this legislation, employers must report their employees' working hours when registering for social insurance.
In 2025, the federal government adopted a comprehensive anti-fraud package. The new measures are based on clear rules to prevent fraud and close legal and tax loopholes, as well as improving the data situation and competencies for combating fraud.
This is also a targeted response to the increasing use of dummy companies. Key elements in this regard are strengthening cross-authority cooperation, expanding data and analysis options for early risk detection, and providing more effective legal instruments for securing taxes and assets. Overall, the package enables the faster prevention of bogus invoices, illegal wage models, and fraudulent social security registrations, protecting against tax and contribution losses. The budget for 2026 has earmarked a total of 270 million euros in additional revenue as a result of this package.
The enquiry offered experts in the field the opportunity to discuss the first anti-fraud package and provide input for future initiatives in the broad field of fraud prevention. 'As with the first anti-fraud package, it is important to us that the proposals come from experts who deal with tax fraud, wage dumping and social dumping on a daily basis,' says Marterbauer.
During the enquiry, practitioners, interest groups, social partners and politicians discussed various areas in the fight against fraud. Christian Ackerler, Director of the Fraud Prevention Office, emphasised the importance of identifying bogus companies: 'In 2025 alone, bogus companies caused losses of around 500 million euros. We are keeping a close eye on this and now have improved methods of combating fraud to support honest companies and ensure they are not at a disadvantage."