Foundation in Biel Lawyer shovels money into his own pocket - and damages foundation
A lawyer and president of a Biel foundation paid himself high fees - with expensive consequences. The foundation now has to pay taxes as it no longer meets the charitable criteria.
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- The Hans Gutjahr Foundation lost its tax exemption because its president paid himself higher fees for years than the foundation spent on charitable purposes.
- The cantonal tax appeals commission criticized the hourly rates in particular.
- It saw a conflict of interest due to the lawyer's dual function as president and managing director.
- The foundation supervisory authority now wants to examine the case more closely, as deviations from the charitable purpose could have further consequences.
The Hans Gutjahr Foundation in Biel, which is dedicated to alleviating humanitarian need, is at the center of a controversy. For years, the president of the foundation, a lawyer from Biel, paid himself high fees that exceeded the expenses for charitable purposes.
As a result, the foundation lost its tax exemption. Instead of the money ending up with people who urgently needed it, the lawyer pocketed the money himself, as the Berner Zeitung newspaper writes.
Over 100,000 francs paid out every year
In 2018, the foundation's donations and support amounted to CHF 101,000, while the president received a fee of CHF 159,000. One year later, donations amounted to CHF 115,000, while the President's fee was CHF 109,000.
This discrepancy was noted by the cantonal tax appeals commission, which described the remuneration of CHF 410 per hour as inappropriate for a charitable foundation.
The tax administration sees a conflict of interest in the president's dual function as managing director. When asked by the editorial team, the lawyer only wanted to comment under certain conditions, which could not be met.
The tax exemption is not fulfilled
Due to the high remuneration and the lack of charitable status, the foundation must now pay cantonal and federal taxes. The appeal against the withdrawal of the tax exemption was rejected as the foundation does not meet the requirements for tax exemption.
The foundation generates its income by renting out a property in Orpund. There are no indications that the rents are granted to financially weaker persons, which puts the foundation in direct competition with private companies.
Foundation supervisory authority takes up the case
The Bernese BVG and Foundation Supervisory Authority, which is responsible for monitoring regional foundations, cannot provide any specific information due to official secrecy. However, it emphasizes that deviations from the purpose of the foundation may lead to further clarifications, irrespective of the tax exemption.
The withdrawal of tax exemption is not relevant under criminal law, but does lead to more intensive scrutiny by the foundation supervisory authority. It will now also look into the case of the Hans Gutjahr Foundation.
The editor wrote this article with the help of KI.
