Foundations are a form in which large assets can be managed legally and legitimately, as experts at the University of Innsbruck say. There are around 250 foundations in Tyrol, most of them in the Kitzbühel area. According to experts, they only make sense and are worthwhile for assets of 25 to 30 million euros, even if they could theoretically be justified for assets of 70,000 euros or more.
Foundations have come into discussion, among other things, because of the question of whether Benko moved millions into his Laura private foundation and thereby let creditors look through his fingers as an entrepreneur despite the many bankruptcies, including his own. Since the Signa bankruptcy, the term “foundation” has had more negative connotations than ever before. Illegal transfer of assets and deception of creditors are subject to various assumptions and assumptions.
Questionable foundations with a completely self-serving purpose
The Innsbruck economist Andreas Exenberger says that the tax advantages of foundations are entirely legitimate and understandable, but foundations can also be used improperly. In Austria there is still the situation where private foundations can pursue a completely self-interested purpose. In international comparison, this is rather unusual, says Exenberger.
That probably also plays a certain role in the Benko case, says Exenberger: On the one hand, to conceal the activity more than in the case of purely entrepreneurial activity. “You can ultimately keep things secret that you wouldn’t necessarily be able to keep secret in a company.” On the other hand, you could also keep money safe from creditors if you do it in a timely manner. The Signa bankruptcy marks a high point, and the legislature is called upon to tighten up foundation law, said Exenberger. “Self-interest is already very well developed in Austria, so you could consider making cuts.”
Expert sees many positive aspects of foundations
Francesco Schurr is a lawyer specializing in foundations and a professor at the University of Innsbruck. In his opinion, foundations, when used correctly, are a useful instrument. Foundations that do not serve a charitable purpose are primarily founded by entrepreneurs to regulate company succession and inheritance. Wealthy families often use foundations in complicated family disputes. But they could also be used improperly.
Against blanket criticism of foundations
One cannot and should not criticize foundations per se, says Schurr. He points out that foundations ensure continuity in the Austrian economy in times of pandemics, financial crises or military conflicts and thus great security. Schurr also speaks of securing locations; it could prevent know-how from being bought and production from being relocated to other parts of the world.
Private foundations play a major role in tourism. The shares in numerous hotel companies are partly held by foundations. Many wealthy people have also moved to Tyrol or the Kitzbühel area in order to be able to make use of the private foundation's instrument, says Schurr.
