Ne
ws

1. FOR WHICH OFFENSES IS SELF-DISCLOSURE POSSIBLE?

A voluntary disclosure that grants immunity from prosecution is possible in cases of intentional tax evasion as defined in Section 370 of the German Fiscal Code (AO).

2. WHAT ARE THE REQUIREMENTS FOR SELF-DISCLOSURE?

To be exempt from prosecution for tax evasion, the taxpayer must fully return to tax compliance.

The supplementary declaration must therefore be complete with regard to the respective type of tax and must cover all tax periods for which the statute of limitations has not yet expired, but at least all tax offenses of the last ten calendar years.

Furthermore, no grounds for exclusion may exist. The offense must not have been discovered, nor may the person concerned expect it to be. No audit order for a tax audit may have been issued for the periods for which the statute of limitations for criminal proceedings has not yet expired. No tax evasion proceedings may have been initiated.

If the amount of tax evaded per offense exceeds €25,000, or if the tax evasion is a particularly serious case, immunity from prosecution is granted only upon payment of an additional surcharge pursuant to Section 398a of the German Fiscal Code (AO). The surcharge is tiered from 10% to 20%, depending on the amount of tax evaded.

Finally, to obtain immunity from prosecution, the taxpayer must pay the evaded taxes, plus interest on the evaded amount, to the tax office within a deadline set by the tax office.

3. TO WHOM SHOULD A SELF-DISCLOSURE BE DIRECTED?

The voluntary disclosure must be submitted to the tax office responsible for the taxpayer's assessment. The tax office's fines and criminal matters department decides on the effectiveness of the self-disclosure.

4. WHAT FORM IS REQUIRED FOR A SELF-DISCLOSURE?

A voluntary disclosure can be submitted in writing, orally, by telephone, or via a written record from the tax office. Experience has shown that oral statements are often imprecise and carry the risk of misunderstandings. Furthermore, distracting remarks from the case worker can lead to an incomplete presentation of the facts. For this reason, a letter to the tax office is recommended. The letter must be signed by the taxpayer or their authorized lawyer or tax advisor.

5. WHAT HAPPENS AFTER A SELF-DISCLOSURE IS SUBMITTED?

After submitting a voluntary disclosure, the taxpayer will generally receive a notification from the tax office's fines and criminal proceedings department. This notification informs them of the initiation of tax evasion proceedings. The letter is standardized and contains no indication of whether the voluntary disclosure will ultimately be effective. As soon as the tax office checks the effectiveness of the voluntary disclosure, the criminal proceedings will be restarted ex officio.