Tipico admits aiding and abetting tax evasion

There is probably no sports betting fan who does not know Tipico . But hardly anyone knows the moving company history, which is currently taking on a negative touch. Why? Quite simply: Tipico has been involved in tax evasion for years - at least that's what the company itself gave to understand. True betting fans hope these facts don't turn into a scandal similar to that of the Crown casinos.

Aid to tax evasion through commission payments

If there is now talk of a scandal, the origins go back to 2013. Even then, Tipico noticed that commission payments were being made in very large sums . That alone is not a problem. After all, a bookmaker also has the right to pay a commission for referrals. The problem, however, is that the payments went to Croatia, for example, even though the recipients of the payments were taxable in Germany.

The company must be credited with the fact that they themselves began investigations and the responsible manager has since been suspended . It is the manager who approved these payments. After all, it is a total of 20 million euros. At the same time, Tipico filed several voluntary reports in order to avoid an official penalty. The reason for this is clear: the payments should not have run into Croatian accounts if the commission recipient is taxable in Germany.

The fact that commission payments were made in the period from 2007 to 2012 could become critical. In addition, the internal investigations did not take place without reason. The origin of the investigation lay in a request made by the Croatian authorities to the FIAU. The FIAU is the Financial Intelligence Analysis Unit. The Croatian authorities turned to them to investigate strange payment transactions.

Did a betting manipulator also receive payments?

Of course, no bookmaker should come up with the idea of ​​tax evasion or aid in this. Another problem could arise at Tipico: A betting manipulator may also have received payments. No name is mentioned, but based on the facts, experts made an estimate of who it might be: Marijo Cvrtak. He had manipulated several hundred football matches in 2009 and is now serving a prison sentence. If so, these facts would damage Tipico's positive image.

In principle, betting commissions paid to operators of betting shops are legal. The basis for the commission is the gross profit generated at the betting shop. This is calculated from the stakes in sports betting minus the cancellations and the winnings that are paid out to the player. The betting shops keep 60 percent of this gross profit - the rest is transferred to Tipico. The tax evasion happened, however, because the betting shops transferred too much to Tipico. The amount overpaid was then transferred back to foreign accounts - shown as commission.

The amounts repaid were shown as special commission and were deposited in accounts in Croatia, Turkey, Hong Kong, Austria and Cyprus.

Although these incidents are described as normal and lawful at Tipico, the manager and at the same time one of the Tipico founders were dismissed unscheduled . Thus the public was given to understand that something was wrong.

Are you in contact with criminal organizations?

The special payments to the aforementioned betting manipulator were discovered at Tipico in 2014, more by chance. At that time it was about a special declaration in the tax return . Tipico took this as an opportunity to examine its own structures. In this context, it was found that some of the commission takers had contact with criminal organizations. However, the information obtained was not sufficient to issue a special termination with the partners.

In one case, Tipico attempted a special termination. In the absence of evidence, this meant that Tipico had to pay the partner a double-digit million amount. This was the only way to terminate the contractual relationship. However, all of this also proves that Tipico is doing everything possible to avoid conflicts with the law and to ensure a high level of player safety. So it is hardly surprising that many the best online casinos offer the Tipico range.

Tax evasion cause for sale

When the problems with the special payments arose and Tipico started a voluntary disclosure, the idea of ​​selling also came up. However, there was no buyer who wanted to acquire the entire company. As a result, only 60 percent was sold to the private equity firm CVC Capital Partners. The purchase price was 1.3 billion euros.

Very few players who participate in Tipico's sports betting via an online casino know all this . It is much more interesting that Tipico has had a license for Germany for ten years to offer sports betting. This increased the value and awareness of the company. When the company was founded by several students in 1998, nobody expected such a success.