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Despite being convicted in April of aggravated tax fraud for failing to declare income from a bankruptcy case, Esch official Pim Knaff refuses to resign, sparking calls for his departure from several political parties.
Pim Knaff, a member of the municipal executive board ("Schäfferot") in Esch-sur-Alzette, was recently found guilty of aggravated tax fraud for failing to declare income from a bankruptcy case he handled as a lawyer. Despite this, Knaff has stated he does not intend to resign from his position.
On Tuesday evening, Knaff addressed the issue in a meeting with representatives of the parties on the Esch municipal council. The Democratic Party (DP) politician has so far avoided speaking to the press. Since news broke on Thursday, 30 May, about his April conviction, Knaff has not responded to any media enquiries. Instead, he personally invited party spokespeople to a meeting from 6pm to 7pm, where he answered their questions.
Following the meeting, Steve Faltz of the Luxembourg Socialist Workers' Party (LSAP) reported that Knaff has no intention of stepping down. Faltz criticised Knaff for trivialising the situation, noting that while the DP characterises the incident as an accounting error, the verdict clearly indicates that Knaff was fully aware of his actions. Faltz stressed that this was not a mere error but aggravated tax fraud that resulted in a guilty verdict.
Knaff reportedly sees no connection between his tax fraud conviction and his political role, a view not shared by the LSAP. According to Faltz, the LSAP believes the case significantly undermines public trust in politics and has called for Knaff's resignation from the municipal executive board.
The LSAP is not alone in this demand. The Left Party (déi Lénk) has been calling for Knaff's resignation since the verdict was made public. "I'm disappointed by Pim Knaff's decision not to step down," said Marc Baum of the Left Party. Baum argued that Knaff's decision to remain in office is detrimental to the interests of both the municipality of Esch and its municipal executive board.
A key question remains regarding the stance the municipal executive board will take on Knaff's future. So far, representatives of the Christian Social People's Party (CSV) and the Green Party (déi gréng) have been reticent about their positions. Marc Baum suggested that Knaff, as an individual, could avoid further trouble by resigning now.
Pascal Bermes of the CSV indicated that all viewpoints have been acknowledged and will be communicated to his team. It is expected that Esch Mayor Christian Weis will address the issue on behalf of the CSV on Wednesday. Mandy Ragni of the Green Party has also withheld comment, noting that the local Green Party chapter will discuss the case in a meeting on Wednesday.
Background
Pim Knaff has publicly defended himself by describing the incident as an accounting error he made as a lawyer in 2019. However, the verdict, which he has accepted, does not absolve him. It states that he failed to declare the amount "freely and knowingly."
The verdict emphasises that, as a lawyer, Knaff is responsible for ensuring his accounting accurately reflects transactions. By not declaring the income, Knaff unlawfully obtained tax advantages for himself. The verdict specifies that he "deliberately" paid less tax to benefit himself.
Specifically, Knaff did not pay tax on fees from a bankruptcy case where he acted as a receiver. The amount in question was €109,249.49, resulting in €33,525 in unpaid income tax and €16,142.94 in unpaid VAT, totalling nearly €50,000 in unpaid taxes. Despite the aggravated tax fraud conviction, Knaff received a fine of €9,500 and no prison time, owing to his lack of a previous criminal record.
