Defence in Corporate Tax Criminal Law
Corporate tax criminal law is a complex, highly specialised field, characterised primarily by the parallel nature of criminal and tax assessment proceedings, which are governed by entirely different procedural rules, administrative jurisdictions, conventions, and processes.
In recent years, it has also been observed that the threshold for intervention by the penalty and fines offices (‘BuStra’) has been steadily lowered, frequently affecting matters that previously would have been ‘resolved during a routine tax audit’.
Effective defence in corporate tax criminal law therefore requires not only a sound knowledge of criminal law and criminal procedure, but also a deep understanding of substantive tax law, the German Fiscal Code (AO), and the mindset and practices of the tax authorities, tax fraud investigators, and the public prosecution service.
We advise and represent clients in all phases of tax criminal proceedings – from preventive advice and the representation during tax audits to filing voluntary self-disclosures and defending clients before criminal courts.
Typical Advisory Scenarios in Corporate Tax Criminal Law
Typical tax criminal proceedings often arise from cross-notification reports, a tax audit, or reports made by (former) employees, business partners, or spouses.
Typical case scenarios include:
- Searches and seizures
- Enforcement of asset freezing orders (Section 111e of the German Code of Criminal Procedure (StPO), Section 324 of the German Fiscal Code (AO))
- Unreported income or assets, for example from capital investments, lettings, or foreign assets, leading to investigation proceedings on suspicion of evasion of income tax, corporate income tax, trade tax, or VAT.
- Errors or irregularities in tax returns that raise suspicion of intentional or negligent tax evasion.
- Customs offences, i.e. contraband, smuggling, import duties (such as customs duty and import VAT), and excise duties (especially tobacco, alcohol, or energy taxes).
- ‘Escalating’ field audits, special VAT audits, or payroll tax audits.
- Allegations related to VAT carousels, sham invoices, or incorrect business expenses.
- Advice on voluntary self-disclosures carrying immunity from prosecution (Section 371 AO) or corrections pursuant to Section 153 AO.
Regardless of the starting position, the following applies: the earlier advice on tax criminal law is sought, the greater the opportunities to actively shape the proceedings, limit risks, and develop appropriate solutions.
Act early – we support you in corporate tax criminal law
Our firm has deep, long-standing expertise in corporate tax criminal law, both in defending and advising individuals and corporate entities.
Tax criminal proceedings are often significantly shaped during the investigation stage. Decisions made at the outset of proceedings can decisively influence their further course and outcome. It is therefore advisable to seek specialised legal counsel early on.
Whether following the initiation of tax criminal investigation proceedings, a search by the tax fraud investigation department, a summons as a suspect or witness, or in connection with a tax audit – we accompany you with many years of experience in tax and white-collar criminal law and develop a defence strategy tailored to your individual case.
In a confidential initial consultation, we analyse the legal starting position, assess the existing risks, and work with you to develop a strategy that takes equal account of your criminal, tax, and economic interests.
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