Lyoness-Turkey: 16,915,399.49 million € have been transferred past tax to Switzerland. Tax audit report accuses.

According to the 87-page tax audit report of the Turkish Ministry of Finance in Istanbul (VERGI INCELEME RAPORU), over the course of years, Lyoness has transferred EURO 16,915,399.49 million alone to Switzerland.

Its bank accounts in Turkey have been blocked and any activity under this name has been prohibited. Lyoness/Lyconet (later myWorld) reacted with the usual wording for years: “One learned from these errors and restructured internally accordingly and adapted the trading conditions…..blabla!” The only problem is that you can rewrite a pyramid scheme to whatever liking of ones, but it will remain a pyramid scheme. If the terms and conditions had indeed been adapted to the legal regulations, myWorld would no longer be able to generate income via the Lyconet money machine.

MyWorld and Lyconet proceeded in their usual manner. The business conditions were rephrased and the financial products that were sold had been given new fantasy names to cause further confusion. That was until the next court determined the non-transparency of the trading conditions and declared them void. Until then, however, myWorld/Lyconet and, for some time now, its “shadowy plants” such as the “Black Diamond Suxess Club”, “Black Diamond Team Hannover” or the “FTP Business Club” will use the time to enlist more people in a sect-like manner with a supposedly better world with the aim of plundering their money.

The audit report of the Turkish Ministry of Finance indicates: (pages 58 – 60)


The taxpayer of the directorate of the tax office Mecidiyeköy, the Lyoness Kart Hizmetleri Tic. Ltd. Sti. is registered under the address, Esentepe Mah. Maya Akar Plaza No: 11 Sisli ISTANBUL. The taxable entity operates a pyramid selling system under the name Lyoness.

Lyoness Europe AG, on the other hand, which is registered in the Commercial Register of the Canton of St. Gallen with the number CH and whose registered office is at Bahnhofstrasse 7, CH-9470 Buchs is a potential taxpayer of the Directorate of the Tax Office Mecidiyeköy with the tax ID number 609 042 1859. Lyoness Europe AG owns 100% of the shares of Lyoness Kart Hizmetleri Tic. Ltd. Sti.

           The funds paid into the account of Lyoness Europe AG at Yapi Kredi Bank with the number 85310215 have not been registered or declared. The unregistered and declared funds, the general functioning of the Lyoness system with the corresponding evaluation, and the corresponding assessments, were listed in the tax technology report on the taxable entity with the number 2015-A-2311/1. The matters criticized concerning the corporate income tax of the taxpayers since 2011 have been the subject of a tax investigation report with the number 2015-A-2311/2.

This report has been prepared on the matters criticized concerning the VAT Act about the amounts that were not registered nor declared in 2011.


2.1 Summaries of the VAT declaration:

The summary of the VAT declaration of Lyoness Kart Hizmetleri Tic. Ltd. Sti. is as follows:


           3.1 Reasons to be assessed ex officio:

           It has been established that Lyoness Kart Hizmetleri Tic. Ltd. Sti. has not registered and declared a part of the revenues.

           Since it is evident that the taxpayer’s book entries for the past fiscal years as well as the related supporting documents are so deficient, inappropriate, and cluttered that the tax base cannot be determined correctly and accurately and therefore cannot be traced and since the declarations made, do not reflect the true state of affairs, the taxpayer’s VAT base for the corresponding fiscal year must be assessed and declared ex officio per Articles 30/4 and 6 of the Tax Code, number 213.

3.2 Data to be measured ex officio:

           3.2.1 Reports prepared concerning the taxable person:

           On 13.02.2015, our Inspectorate prepared a tax technology report on taxpayers with the number 2015-A-2311/1. It was concluded with this report that money was collected from the members in the Lyoness system under the advance promise of prepayment/partial payment for purchase/sale, the members were referred to the account of Lyoness Europe AG with the number 85310215 at the Yapi Kredi Bank about these payments, these deposited funds are the income of Lyoness Kart Hizmetleri Tic. Ltd Sti. and these were not registered and not declared.

           Concerning these unregistered and undeclared amounts of the last fiscal years, a tax investigation report with the number 2015-A-2311/2 was prepared on 13.02.2015 regarding the corporate income tax on the taxable organization. The unregistered and undeclared amounts established in this report are as follows.

…….. stay tuned…….!

myWorld Austria GmbH also part of the pyramide scheme with its judgement at the HG Wien of 13.11.2020!

In a legal dispute before the Supreme Court Vienna the connection of the companies Lyconet International AG, Lyoness Europe AG, and mWA myWorld Austria GmbH was judicially established and condemned.

The presiding judge formulated it excellently in a 38-page judgment and clearly explained the context in legal terms.

From the judgment it is clear,

the acquisition of “coupons” like e.g. mVouchern, aims to acquire shopping points as a marketer and thus to be entitled to remuneration in the system of the myWorld companies. Therefore, there is an inseparable connection between the acquisition of the vouchers at myWorld Austria GmbH and participation in the pyramid scheme.

It is obvious that this approach of the myWorld companies is aimed solely at confusing the members. Due to the inscrutable change of the contractual partners and different service providers, the enforceability of a claim should be made more difficult. Apart from minor changes to the fantasy names for the products sold by the defendants, their business model has not been changed.

The members of the myWorld companies are led to believe that only one contractual partner is facing them. By a possible blocking of member accounts, a “registration” is forced and eventually completes the immoral proceeding of the defendant companies.

At first, myWorld Austria GmbH did not appear at all to the outside world and was only mentioned on the invoices, clarifies the court.

The presiding judge Andrea Bayer formulated it excellently in a 38-page judgment and explained the connection legally clearly.

MyWorld constantly claimed to have no business connections with Lyoness or Lyconet. This has now an end.

The marketer had filed a joint complaint against Lyconet International AG (Vienna), Lyoness Europe AG (Switzerland), and mWA myWorld Austria GmbH (Graz/Austria) and was fully justified.

The defendant myWorld enterprises tried to question the local and international jurisdiction as well as the legal process, which was however rejected.

In 2018 and 2019, the marketer had invested a total of approximately €20,000 in discount vouchers and clouds. The court clearly speaks of investment here as well.

Among other things, the court stated that neither in the known terms and conditions nor the Lyconet Compensation Plan (old and new) was a comprehensible comparison or conversion into a real monetary value to there mentioned the shopping points, units, Balance Commission, Balance Bonus, Coach, and Senior Coach Bonus, etc.

Although the myWorld enterprises maintained that by the discount coupons acquired Shopping POINTs would entitle to purchase advantages with partner-enterprises, to the court however one remains the proofs guilty. One remembers the alleged large partner-enterprises!

The marketer was approached and recruited by a man who introduced himself as an “employee of Lyconet”. He was mainly interested in information about investment opportunities with the so-called “clouds”. Besides, it was explained to him that you can invest money in clouds and from a certain point in time you will get back the full value of the invested money plus EUR 300 to EUR 400 per month. This would be a passive income without having to do anything yourself. You buy a share of a country and then profit from the purchases of the people in that country. This would be risk-free because people would always buy. The clouds are like a savings book for investing money. If you bring more people to buy the clouds, you can also earn money from them. However, they would have to buy discount vouchers every month to remain eligible for remuneration.

In March 2018, he paid an initial entry fee of EUR 2,350. Furthermore, he acquired his first “discount voucher” for EUR 50. For a further purchase of the “discount vouchers”, he paid EUR 50 per month from April 2018 to April 2019. The monthly payments were necessary to be able to invest in the clouds and ultimately receive their payouts. In March 2019, he also invested in four shares in “S-E2CC” for a total of €6,000. He paid €4,500 for three “German Customer Clouds” and for another €1,500 he bought shares in “Italia Cloud” in April 2018.

When the marketer questioned the payouts from the clouds, he was told at the meetings that things were not going well. However, there had been a major change, for which another EUR 500 per share for the clouds had to be paid for the respective shares. The distribution of profits would only be extended by three more years. One would no longer earn money from one country but from several projects of the company. According to the judgment, the switch will enable the company to invest in the new projects.

As was stipulated in the meetings, he paid a further €4,000 for his eight shares in the clouds he had previously acquired, i.e. €500 per share.

In March 2019, Lyoness Europe AG then intended to change the General Terms and Conditions and change of the contractual partners. For this purpose, they blocked the online access of customers who had not yet accepted the Lyconet agreement of March 2019. In doing so, Lyoness Europe AG advertised the change as follows:

“Lyconet – NEW. Why change something well-tried if it’s going well? Because it can go even better! Lyconet opens the door to a world with even more opportunities and advantages. (…).“ The usual slogans of perseverance.

The plaintiff had to register with the advertised “Lyconet NEW” in March 2019 and accepts the “Lyconet Agreement” by clicking on it, otherwise, he no longer would have had access to his member account. He trusted the statements of the Lifeline in the meetings that these were correct. He was not aware that with this procedure a new contractual partner – Lyconet International AG – was introduced to him. In the meetings, this was not announced either. When registering, he had to confirm that he was an entrepreneur, otherwise, no change would be possible. He was surprised about this but felt compelled to click on this “box” because otherwise he would not have had access to his member account.

Likewise, he had to accept the additional conditions for the purchase of mVouchers, whereby the mVouchers replaced the monthly discount vouchers. In return he had to accept the additional conditions for the purchase of mVouchers without reading them, notes the court.

Further from the judgment, it follows that the contract change was not plausible for the members. As Lyconet International AG is called, as Lyoness Europe AG was already called before in the general terms and conditions (“Lyconet”). The member’s membership number and the payment modalities always remained the same. As well as the account number of the recipient, which was always in the name of Lyoness Europe AG. The website for login access  always stayed a The member had to face „Lyconet” (see the “Lyconet agreements“) at all times. The contract forms refer to each other and cannot be read independently. Nor does myWorld Austria GmbH operate independently of Lyconet or Lyoness.

The fact that he visited Lyconet seminars/webinars and meetings regularly as a Marketer Lyoness/Lyconet seminars and meetings, was interpreted by myWorld, etc. as proof for its disadvantageously employership. His investments served alone for purposes of the investment of funds for his retirement provisions. He only visited the seminars/webinars in order to keep track of his investments, he assured, which is understandable and the court complied.

The court continues:

myWorld Austria GmbH, Lyconet internationally AG, and the Lyoness Europe AG knowingly caused in the procedure the impression that different circumstances and different sales contracts were present. For the plaintiff, the change of the contracts was not traceable. He was faced with “Lyconet”. As result from the general terms and conditions, this effect is quite wanted by the myWorld enterprises. Thus called the fundamental set of contracts since the beginning “Lyconet agreement”, although at first Lyoness Europe AG was behind it as a contracting party. Even the marketing program is called “Lyconet”. Finally, Lyoness Europe AG propagated a necessary “changeover” on its website. The members had no choice but to stick with the original contract and had to carry out the new “registration”, especially since otherwise they would not have had access to their data and payment overviews. To disguise the actual change of contract that took place here, the new agreement is again called the “Lyconet Agreement”. To further confuse the members, the new contractual partner is again Lyconet International AG. This creates the impression that nothing has changed. The membership number and payment modalities always remained the same.

The acquisition of the so-called “discount vouchers” and “clouds”, which were advertised as a secure investment, is only possible after the “Lyconet agreement” has been concluded. Initially, these vouchers were sold by Lyoness Europe AG and after a “switchover” by myWorld Austria GmbH. The different contractual partners who are confronted with “discount vouchers” when purchasing the “discount vouchers” and later “mVouchers” are not easy for members to recognize. Although the member had to accept terms and conditions once again, these again refer to the “Lyconet agreement”.

Have you understood everything? This is what contractual transparency looks like at the myWorld group of companies.

The judgment is at first instance and all three myWorld enterprises will go surely into an appointment, but as in Norway or Turkey, the procedure is only dragged out since one would like to avoid a promptly valid judgment.

TURKEY – Lyoness as a pyramid scheme prohibited by the court! Dummy company busted / Lyoness Kart Hizmetleri Ltd. Sti. under bankruptcy administration/tax debts worth millions / penal proceedings for tax evasion and deliberate bankruptcy.

At the time of the miserably low allocation of S-E2CC in June 2020, we were informed about the completed proceedings from Turkey, which had been going on for years. The incidents and convictions of Lyoness in Turkey are quite a challenge, however, due to the language barrier, the events have probably become less known elsewhere. This is something we are now changing.

In the meantime, we have more than 300 pages of documents from Turkish government agencies, which we will publish soon in an explanatory and translated form.

Already since the time of the country packages, Lyoness has transferred all sales made in Turkey untaxed directly to accounts throughout Europe (Switzerland, Germany, Great Britain, or UK Iceland bank accounts) or third-party accounts to avoid taxes. As can be seen from the investigation files of the Turkish tax authorities, an amount of 70,355,352.55 TL, converted to 16,915,399.49 Euro, was deliberately transferred untaxed from Turkey to Switzerland alone.

Lyoness is proven to be prohibited in Turkey. We also know that Lyoness/Lyconet marketers and myWorld itself do not really care much about state orders nor do they even let themselves be deterred from activities (as in Norway). By controls of the authorities in Turkey, they determined that even forbidden seminars were held. In these seminars, the pyramid scheme was further distributed and participants were asked to make new potential members aware of this “life-changing and safest business in the world”. In return, the participants were promised to receive an even higher commission.

Hereafter is a decree dated on the 18th of October in the year 2018

Translation of the upper decision:

To the responsible authority

The business operations of Lyoness Kart Hizmetleri Ticaret Ltd. Şti. have been terminated due to tax debts to the tax office in Mecidiyeköy and bankruptcy proceedings are currently continuing.

After the bankruptcy decision concerning this company, LYONESS HOLDING EUROPE Ltd. will be registered as bankrupt according to the Trade, Enforcement and Competition Law of the Turkish Republic. Furthermore, Lyoness Kart Hizmetleri Ticaret Ltd. Şti. will be registered as bankrupt. It will not be possible for these bankrupt companies to resume trading activities in Turkey. If LYONESS HOLDING EUROPE AG. founds another company in Turkey or becomes a partner in another company, its liability for the public debt before bankruptcy will continue.

For these reasons, it is not commercially possible for these companies to establish companies in Turkey or become shareholders in other companies.”

In a further decree of the Istanbul Commercial Court of 17.01.2019 (excerpt see below), it is stated that the bankruptcy of Lyoness will be announced and the control of the company will be officially transferred to an Istanbul bankruptcy administrator with immediate effect.

After being charged with commercial tax evasion by the Turkish state, the lawyer of Lyoness founded a dummy company of Lyoness Europe AG in Turkey and declared that the transferred funds to the companies in Europe did not belong to the company and requested that the foreclosures and penalties be lifted. The Turkish government authorities did not follow this request. After several objections, according to our information so far, this decree is legally binding since March 2020. We will shortly publish this decision in a fully certified translation.

Extract from the DECREE (Page 9 of 11) dated on the 17. January. 2019

With the open negotiation about the insolvency proceedings before our court, the following was RECOGNISED AND DECIDED FOR RIGHT: The following is summarized in the statement of claim by the plaintiff’s attorney: The client Lynoss Kart Hizmetleri Tic. Ltd. Şti. is registered in the Directorate of the Istanbul Commercial Register under the registration number 707436. ………. As a result of the client’s transactions, high amounts of taxes became due for her, and tax penalties were imposed on her……………… To collect the public debts that became due, seizure proceedings were initiated and the Ltd. was no longer able to continue its trading activities. As a result, the authorized representatives of the client, the LLC, have had a valuation carried out by a tax advisor to assess the financial situation of the LLC per Article 179 of the Law on the Enforcement and Insolvency of Companies, based on financial data, which established that the assets of the LLC amounted to TL 1,935,471.49.49 (as of 19.01.2019, € 309,675.43) and the total liabilities to TL 94,620,938.59 (as of 19.01.2019, € 16,139,350.35). This shows that the liabilities of the LLC exceed the assets by 92,685,467.10 TL (as of 19.01.2019, 15,829,674.09 €) and that it is bankrupt. 4. COMMERCIAL COURT ISTANBUL.”

What Hubert Freidl and Marco Sedovnik arranged with the former MD (Managing Director) to blame everything on him, will be published with further publications, as well as witness statements, indictments, and personal interviews on-site. To be continued…………………………