News
The article is more than 10 years old

Tampere businessmen paid their kids huge salaries – to avoid taxes

Two executives were sentenced on Tuesday for aggravated fraud after years of channelling money through minors' bank accounts.

Tampere Areena
Image: Elina Nieminen / Yle

Two businessmen have been handed suspended prison sentences in an unusual case of tax fraud. The defendants, one current and one former executive of the Tampere Areena multi-purpose hall, were convicted of aggravated fraud for using their children's bank accounts to avoid paying taxes and social security payments.

On Tuesday Pirkanmaa District Court gave the men six and seven month suspended terms. One man, who still works at the facility, had his sentence lightened because he assisted authorities investigating the case. The other man was also slapped with a three-year ban on business operations.

They avoided paying taxes and fees on an estimated 200,000 euros in salaries between 2007 and 2012 – partly by paying themselves via their children's bank accounts. The children were then aged one to 10.

"All taxes now paid"

Reached by Yle Tampere after the charges were announced in early February, the man who remains on staff did not deny the wrongdoing. He said all back taxes on the wages have now been paid.

Tampere Areena is in the south-central city's Kaleva district. It rents out space for various concerts, sports and other events. Formerly known as Metroauto-areena, it also features a restaurant, gym, bowling alley, paintball facility and rehearsal spaces for bands.