Tax evasion occurs in particular when taxes are intentionally reduced or unjustified tax advantages are obtained, for example, by providing incorrect or incomplete information to the tax authorities regarding tax-relevant facts or by unlawfully withholding tax-relevant facts from the tax authorities. Both active conduct and unlawful omissions can be punishable offenses – even the attempt is sufficient. Negligent tax evasion (§ 378 AO) is not a criminal offense, but constitutes an administrative offense.
According to Section 370 Paragraph 1 of the German Fiscal Code (AO), fines or prison sentences of up to five years can be imposed. In particularly serious cases according to Section 370 Paragraph 3 of the German Fiscal Code (AO), the penalty is imprisonment for six months to ten years.
A particularly serious case may exist, among other things, in cases of large scale, abuse of a public official position, continued tax evasion using forged or falsified documents, or in cases of organized crime.
According to the Federal Court of Justice, the criterion of "large scale" is met if the amount of tax evaded exceeds €50,000 (BGHSt 53, 71). This now also applies if the perpetrator's conduct is limited to unlawfully withholding information from the tax authorities regarding tax-relevant facts, and this merely jeopardizes the tax claim (Federal Court of Justice, Judgment of October 27, 2015, 1 StR 373/15).
According to the jurisprudence of the Federal Court of Justice, in cases of particularly high amounts of tax evasion exceeding €50,000, a fine can only be considered proportionate to the offender's culpability if there are significant mitigating circumstances. In cases of tax evasion amounting to millions of euros, a suspended prison sentence is only considered if there are particularly significant mitigating circumstances.
Yes. A variety of circumstances can lead to a reduction in sentence in a specific case, in particular restitution, early and complete disclosure of the facts, and cooperation with the authorities.
You should discuss which measures are appropriate in your case with a criminal defense lawyer.
A self-report can lead to immunity from prosecution if it is complete, timely, and made before actual discovery. The legal requirements are stringent and depend on the individual case.
The statute of limitations is generally five years, but 15 years in particularly serious cases. The decisive factor is the point in time when the offense was completed, such as the notification of the tax assessment. A variety of circumstances can cause the statute of limitations to expire significantly later.
Every criminal proceeding begins with an initial suspicion, which leads to the initiation of an investigation. The investigation concludes with an indictment, a penal order, or the dismissal of the case, for example, due to insufficient suspicion of a crime or upon the imposition of conditions. Following an indictment, a main trial and a court hearing are usually held. The main trial typically ends with a verdict or, in some cases, with a dismissal. Subsequently, an appeal may be pursued.
For example, tax evasion proceedings are discontinued if it turns out that there is no sufficient suspicion of a crime or that the public interest in prosecution is so low that discontinuation subject to conditions is possible.
An experienced lawyer will examine the charges, develop a realistic defense strategy, and vigorously represent your interests before tax authorities, investigative authorities, and courts with the aim of achieving a dismissal of the case or the mildest possible sanction.