Steel

ADAC has to pay almost 500 million euros

Summary

The automobile club ADAC does not get out of the negative headlines. According to information from the magazine “Der Spiegel”, the association owes the federal government 500 million euros. This emerges from a note from the Federal Ministry of Finance […]

.  The ADAC owes the federal government half a billion euros (source: dpa)

The automobile club ADAC does not get out of the negative headlines. According to information from the magazine “Der Spiegel”, the association owes the federal government 500 million euros. This emerges from a note from the Federal Ministry of Finance (BMF).

Insurance tax not paid

According to the auditors, the automobile club did not pay any insurance tax in the 2007 to 2009 financial years, although membership “establishes an insurance relationship that is relevant to insurance tax law”, reports “Spiegel”. Specifically, it is about accident and breakdown assistance.

According to the report, “according to a preliminary and very cautious estimate”, “insurance tax of around 200 million euros to be paid afterwards” should be assumed for the audit period. For the following years, the experts from the BMF had also calculated an annual revenue of 67 million euros.

No criminal case

According to the report, however, it has not been clearly clarified whether the ADAC deliberately did not pay the taxes. While the tax auditors speak of deliberate tax fraud – from the auditor’s point of view, there were indications of tax evasion – the Ministry of Finance has a different view, writes the “Spiegel”. Accordingly, no preliminary investigation has been initiated.

Nevertheless, the automobile club had to pay the outstanding tax liability. According to the magazine, the club is prepared. “The ADAC,” it says, “is basically aware of the intended further course of action.”

ADAC in the wake of scandals

Germany’s largest car club has caused a number of scandals in the past few weeks – including manipulation of the awarding of the “Yellow Angel”. As a result, ADAC President Peter Meyer resigned last month and was before his dismissal. “I no longer want to be held solely responsible for errors and manipulations by full-time executives who, according to the ADAC statutes, are responsible for managing day-to-day business,” he explained in the message.