Benko Villa in Igls: was the dedication and use legal?

The Innsbruck Neos told the “Tiroler Tageszeitung” that it was possible that the property was not being used in accordance with the intended use in connection with the Republic’s reservation of a lien on a villa belonging to the founder of the insolvent Signa Group, Rene Benko, in Innsbruck-Igls. The villa was built commercially but was used privately by Benko. Mayor Georg Willi (Greens) objected violently: It was a legally compliant dedication and use.

Neos demand clarification

Neos local councilor and National Council member Julia Seidl assumed that the residence, which was purchased by Schlosshotel Igls Betriebs GmbH in 2016, was officially built as a commercial or tourism business, but was used privately by Benko’s family. This is the only way to explain why the finance department now wants to have back input tax that was once refunded. Seidl, who is running as the pink top candidate in the local council elections next April in Innsbruck, is demanding complete clarification from the city government: “Why was Benko approved for this private building? It was clear to those in political responsibility that it was officially a hotel business.”

Willi defends himself against accusations

Mayor Willi did not want to let the Neos allegations or suggestions stand on Wednesday. When the property or residence was purchased, the hotel operations there had already been discontinued, emphasized Willi and presented the official purchase deed from 2016. The legally binding designation of the purchase area of ​​around 5,900 square meters was a general tourism area. This zoning category is a mixed area that explicitly allows for tourist use, but does not exclude residential use. The latter – namely permission for private living – is crucial, according to the mayor. The Neos’ statements would therefore be ineffective. And Willi also made it clear: “An additional reallocation for the residential category was not necessary at all due to the existing designation and the buying company of Mr. Rene Benko did not submit a request in this regard to the city of Innsbruck.”

Bausperrenverordnung in Igls

As a result, people in Igls, a district above Innsbruck in the eastern low mountain range, were confronted with a general problem, Willi explained: Other hotel businesses were increasingly closing their businesses, not least due to the Corona problem, and the land was being offered to residential developers or has been sold to such. That’s why the city initially decided to impose a “construction ban ordinance” for all larger existing tourist areas in Igls.

The Republic has seized Benko’s privately used villa in Innsbruck because of outstanding tax payments.
Image: (APA/EXPA/JOHANN GRODER)

In addition, a new zoning or special zoning was determined for the hotel locations that still existed at that time, which was “tourism area with exclusion of residential” and precludes conversion to residential without prior reallocation. Although this cannot force the continuation of a hotel business, in the event of the closure of a business and a planned conversion of the area to residential use, the “sovereign control of the city is necessary.” A conscious decision is needed within the framework of the city’s discretionary power. We took action because there was and is an essential interest in strengthening tourism in the eastern low mountain ranges, emphasized Willi.

The deposit cause causes waves to rise

The waves had recently risen around the deposit issue surrounding Villa Benkos. The accusation: Schlosshotel Igls GmbH is said to have owed more than 12 million euros in sales tax since 2016, as can be seen from a lien notice. The registration of the lien was confirmed at Finanz, but without mentioning the amounts or background information.

Benko’s Laura private foundation, which largely owns the Schlosshotel Igls company, rejected the reports about the private villa as “false and misleading”. Schlosshotel Igls GmbH is an independent real estate entrepreneur. As part of the construction of the new building, they “properly paid VAT on construction costs and received it properly and correctly as part of the input tax from the Innsbruck tax office.” The tax authorities are of the “unilateral view that the input taxes that have already been refunded must be repaid – which has no legal basis and is rejected by the property owner.” As part of this discussion, the administration arranged for disputed input taxes to be secured by means of a mortgage. “These are not personal taxes of Mr. Rene Benko,” said the foundation.

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