What are the consequences of tax evasion
What are the consequences of tax evasion and how can you protect yourself from it?
12.12.2020 | Category: Tax & Financial Criminal Law
Tax evasion in criminal tax law
Tax evasion is the central offense in criminal tax law. The Tax Code (AO) describes tax evasion in Section 370. Accordingly, who commits tax evasion deliberately causes a tax reduction through incorrect or incomplete information or achieves an unjustified tax advantage. Who:
1. Passes on incorrect or incomplete information to tax authorities or other authorities,
2. withholding significant tax facts from the tax authorities or
3. no mandatory tax characters or tax stamps used.
The act can through both active doing as well as through breach of duty are committed.
also the Attempt is punishable. Only a natural person can be considered a perpetrator, for example not a GmbH, but its managing director, tax advisor, etc.
Examples of tax evasion are:
There are different types of tax evasion:
What are the penalties for tax evasion?
This can lead to tax evasion Fines or imprisonment up to five years come. In severe cases, the prison sentence increases to up to ten years, a fine is then no longer possible. In addition to the fine, the evaded taxes plus 6% interest must be repaid annually. No table of penalties can be drawn up for tax evasion, as the individual case is always possible Mitigating and Reasons for aggravating the penalty is judged.
Particularly serious cases exist when trading within a gang, multiple receipts are falsified or an official abuses his position. A particularly large amount of tax evasion, from an amount of 50,000 euros, is a particularly serious case. As is the tax reduction via third-country companies, i.e. a partnership, corporation, estate whose headquarters are outside the EU or European free trade area.
as mitigating punishment various factors can have an effect:
Furthermore, some factors can also have an aggravating effect:
Voluntary disclosure in the event of tax evasion
Before tax evasion is discovered by the authorities, there is the possibility of Self-disclosure exempt from punishment. This prevents proceedings and thus fines or imprisonment, only the evaded taxes including arrears and evasion interest in the amount of 6% have to be repaid annually. Once the crime has been discovered, there is no longer any possibility of self-disclosure. Anyone who decides to self-report should contact an experienced lawyer, such as one Tax law attorney. This helps with the complex matter because the process offers a multitude of sources of error.
The self-disclosure takes place at the responsible tax office. All figures have to be corrected, then the missing taxes plus interest will be paid, there may be a surcharge.
Statute of limitations on tax evasion
Tax evasion will criminal as well as tax law tracked. This results in two periods of limitation for prosecution. The prosecution of tax offenses is statute-barred after five years and in serious cases after ten. The period begins with the termination of the act, i.e. with the announcement of the tax assessment. The tax assessment period is at least ten years.
If you have tax proceedings, you should consult a tax lawyer. During the proceedings, the latter will try to weaken the facts and the amount of the tax embezzled. In addition, the lawyer can incorporate all mitigating factors into the defense strategy.
Tax evasion - the law explained in simple terms
What is tax evasion?
Continue reading:What is tax evasion?
When is tax evasion a criminal offense?
Continue reading:When is tax evasion a criminal offense?
What do I need to do to get mitigation?
Continue reading:What do I need to do to get mitigation?
What are the penalties for tax evasion?
Continue reading:What are the penalties for tax evasion?
Where can I submit a voluntary disclosure?
Continue reading:Where can I submit a voluntary disclosure?
What does voluntary disclosure in the event of tax evasion do?
Continue reading: What does voluntary disclosure in the event of tax evasion do?
Which lawyer do I need for tax evasion?
Continue reading: Which lawyer do I need for tax evasion?
Is tax evasion time-barred?
Continue reading: Is tax evasion time-barred?
Disclaimer: The information provided on this website is only general information and does not replace professional legal advice. Any liability for correctness, completeness and topicality is excluded.
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