Criminal defense for Tax Evasion in Bonn

Legal Basis

§ 370 AO

Sentencing Range

Imprisonment of up to five years or a fine; up to ten years in particularly serious cases

Summary

Evading taxes by providing incorrect or incomplete information to the tax authorities or by failing to disclose tax-relevant facts

Tax Evasion (Section 370 German Fiscal Code) – Criminal Defense Against Tax Evasion Charges

Tax evasion is the central offence of German tax criminal law and carries a sentence of up to five years of imprisonment – up to ten years in especially serious cases. As a white-collar offence, it affects private individuals, self-employed persons, and companies alike and requires highly specialised defense at the intersection of tax law and criminal law. For expats in Germany with international income or assets, the risk of inadvertent non-compliance is particularly high.

Statutory Text – Section 370 AO (Excerpt)

Paragraph 1: Whoever provides incorrect or incomplete information to the fiscal authorities or other authorities regarding tax-relevant facts (no. 1), wrongfully leaves the fiscal authorities uninformed about tax-relevant facts (no. 2), or wrongfully fails to use tax stamps or revenue stamps (no. 3), and thereby evades taxes or obtains unjustified tax advantages for themselves or another, shall be punished with imprisonment of up to five years or a fine.

Paragraph 3: In especially serious cases, the penalty shall be imprisonment from six months to ten years.

Elements of the Offence in Detail

Incorrect or incomplete information: The offender provides information to the fiscal authorities that is objectively incorrect or incomplete. This covers false tax returns, undeclared income, fabricated business expenses, and manipulated bookkeeping.

Wrongful omission: Failure to provide information can also be punishable if a tax declaration obligation exists and the offender wrongfully violates it.

Tax shortfall: The act must result in tax being evaded. Taxes are evaded if they are not assessed, not assessed in full, or not assessed in time.

Intent: The offender must act intentionally, knowing the incorrectness of their information and at least accepting the tax shortfall as a possible consequence. In cases of negligence, reckless tax reduction (Section 378 AO) may constitute an administrative offence.

Typical Methods of Commission

Tax evasion occurs through failure to declare income (particularly from abroad), claiming fabricated business expenses or input VAT amounts, manipulation of cash records, undeclared work and cash-in-hand payments, use of letter-box companies abroad, VAT carousel fraud, and failure to remit payroll tax and social security contributions.

Sentencing Range

Simple tax evasion is punished with imprisonment of up to five years or a fine. In especially serious cases (para. 3) – particularly evasion on a large scale (from approximately 50,000 euros) or as part of a gang – the penalty is imprisonment from six months to ten years. For evasion amounts exceeding one million euros, a suspended sentence is only possible in exceptional cases. A voluntary disclosure (Section 371 AO) can lead to exemption from punishment if all requirements are met.

Typical Defense Strategies

Defense against tax evasion charges requires expertise in both tax law and criminal law. Central points of attack include examining whether a tax shortfall has actually occurred and whether the tax authority’s legal assessment is correct. Intent is also scrutinised – complex tax matters may be based on a mere legal error or advisory negligence. The possibility of a criminal-exempting voluntary disclosure is evaluated at the earliest opportunity. BAFTEH Criminal Defense comprehensively analyses the tax situation and develops a defense strategy that addresses all tax and criminal law aspects.

Typical case groups in tax evasion (§ 370 AO)

Tax-criminal proceedings range from forgotten income to complex VAT cases. The amount evaded and a voluntary disclosure largely determine the outcome.

Voluntary disclosure

An effective voluntary disclosure under § 371 AO can bring impunity – but only with a complete subsequent declaration and as long as no barring ground (such as discovery of the offence or an audit order) exists. A failed disclosure can worsen the situation; legal support is indispensable here.

Amount evaded and sentencing

The amount evaded strongly shapes the sentence. For high amounts a custodial sentence comes closer; at the same time there is scope through repayment and clarification.

Estimation and VAT

Often the allegation rests on an estimate by the tax authority. These estimation bases can frequently be challenged – an important line of defense.

Note: This information is general and does not replace advice in an individual case.

Summons or accusation of Tax Evasion? What matters now

Make no statement to the police at first

As an accused person you are never obliged to comment on the allegation. Anything said to the police can be used against you. Provide statements only through your defense attorney and only after reviewing the case file.

File inspection comes first

A sound defense against the allegation of Tax Evasion requires knowledge of the investigation file. Only once the available evidence is clear can we decide whether a statement is advisable or whether remaining silent is the better strategy.

Possible discontinuation of proceedings

Not every case ends in a trial. Depending on the evidence and any prior record, the proceedings may be discontinued for lack of sufficient suspicion (§ 170 II StPO), for triviality (§ 153 StPO) or subject to conditions (§ 153a StPO). Often a penalty order without a public trial can be achieved.

Victim-offender mediation and restitution

In many cases, victim-offender mediation or making good the damage (§ 46a StGB) can significantly reduce the sentence or enable a discontinuation. Whether this is advisable in your case is something we assess based on the file.

What we do after reviewing the file

We examine the evidence for reliability and admissibility, look for procedural errors, develop the defense strategy, seek a dismissal of the proceedings through discussions with the public prosecutor’s office and represent you, if necessary, at trial before the Bonn Local Court or Bonn Regional Court.

Available 24/7: +49 228 504 463 36

This information does not replace a review of the individual case. In criminal proceedings, the defense strategy depends substantially on the case file, the specific allegation and the evidence.