The accusation of a tax offense can have serious consequences. In case of a conviction, fines or imprisonment of up to 5 years may be imposed, in particularly severe cases up to 10 years.
Tax criminal law imposes severe sanctions for a tax offense. According to the Fiscal Code (AO), tax evasion can lead to fines or imprisonment of up to five years. In particularly severe cases, imprisonment between six months and ten years is possible.
It is easy to fall under suspicion of a tax offense, and often tax regulations are unknowingly overlooked. Since the criminal consequences can be significant, it is first important to distinguish whether a tax administrative offense or a tax crime exists, explains the commercial law firm MTR Rechtsanwälte.
According to § 378 AO, a so-called minor tax reduction is still a tax administrative offense. A tax administrative offense is assumed when taxes were reduced negligently, but there is no intent. The problem for the accused is often that they must convincingly demonstrate that they acted only recklessly and did not intend to reduce taxes. In the case of a tax administrative offense, fines of up to 50,000 euros may be imposed. Even with tax endangerment according to § 379 AO, it is still an administrative offense.
Tax evasion, on the other hand, is a tax crime. However, it requires that the accused acted with intent. According to § 370 AO, tax evasion occurs when the taxpayer reduces taxes through active deed or neglecting duties or gains other unjustified tax advantages. If tax-relevant facts were completely or partially concealed from the tax office or inaccurate information was given, tax evasion is committed. Even an attempt is punishable, and fines and imprisonment are threatened. Therefore, competent defense by attorneys experienced in tax criminal law is essential when accused of tax evasion.
If the tax evasion has not yet been discovered by the tax authorities, there is still the possibility of a self-disclosure that exempts from punishment. However, this can only have an exempting effect if it is made in good time before the offense is discovered and is complete. Even small errors can cause the self-disclosure to fail. Therefore, competent attorneys should also be consulted for a self-disclosure in tax criminal law.
