Hotelier Urs E. Schwarzenbach Convicted of Tax Evasion
After a long legal battle that spanned several years and multiple court levels, Urs E. Schwarzenbach, the owner of the renowned “Dolder” hotel, has been sentenced to pay a fine of 4 million Swiss francs for tax evasion. This final verdict was issued by the Zurich High Court on August 21, 2024, putting an end to a complex legal saga that began in May 2018.
The case reached its conclusion through a written decision by the Zurich High Court, as no oral hearing took place. The verdict was accepted by all parties involved, making it legally binding as of October.
Tax Evasion Involving Imported Artworks
Among the various legal disputes that Schwarzenbach faced, one of the most significant allegations was related to tax evasion in connection with the importation of artworks. He was accused of failing to declare the import of art pieces in 123 instances and undervaluing goods in 27 cases, resulting in the wrongful non-payment of 3.721 million Swiss francs in import taxes.
In June 2020, the Zurich High Court reduced the initial 4 million franc fine imposed by the Bülach District Court to 2.503 million francs, finding Schwarzenbach guilty of smuggling 112 art pieces into Switzerland without paying customs duties.
Following a successful appeal by the Swiss Federal Customs Administration in November 2021, the case was sent back for reassessment. The Zurich High Court then lowered the fine to 3.098 million francs in August 2022, taking into account the prolonged duration of the legal proceedings.
After a third reassessment prompted by the Federal Court, the Zurich High Court upheld the original 4 million franc fine, as prescribed by the Bülach District Court over six years ago, with no room for further increase due to legal constraints.
Settlement of Outstanding Taxes
In September 2012, Schwarzenbach came under scrutiny when customs officials at Zurich Airport discovered undeclared artworks worth over 300,000 francs in his luggage. Subsequently, the Swiss Federal Customs Administration initiated a criminal investigation against him, leading to a protracted legal battle that lasted over a decade.
Ultimately, Swiss customs and tax authorities sought approximately 300 million francs from the billionaire from Küsnacht. However, in July 2024, it was revealed that Urs E. Schwarzenbach had settled his debts with the tax authorities and customs, resolving all outstanding matters and concluding the legal proceedings.
For more information, refer to judgment SU230058 dated August 21, 2024, which is now legally binding.