By self-reporting, you get the penalty-free effect in the case of tax evasion. We show you which requirements you have to meet since January 1, 2015 and what has changed in 2015. It is also good to know how the procedure works and how long it takes.

1. When do you become a tax evader?

Tax criminal law has two types of tax evasion. In both cases, it is irrelevant whether the taxes have actually been reduced or not, because the attempt at tax evasion is already punishable. A distinction is made between the injunctive offence and the offence committed:

1.1. Injunction (example: non-delivery of tax return)

Taxpayers generally have the obligation to submit annual tax returns and to inform the tax office of special facts. Anyone who does not fulfil this obligation on time commits tax evasion. A classic example of an injunction is that a taxpayer does not submit his income tax return on time.

1.2. Commitment offence (example: submission of an incorrect tax return)

Whoever, on the other hand, submits all tax returns to the tax office on time and also declares all other information correct, becomes a tax evader if this information is inaccurate or incomplete. Classic example here is when the taxpayer does not record foreign revenue in his tax return.

We have summarized more information about tax evasion here.

It is often assumed that only the taxpayer himself can evade taxes and be punished for this. However, criminal law also knows accomplices, indirect perpetrators, instigators and accomplices. So whoever incites someone else to tax evasion, supports him or even signs the tax declaration together with him (spouse), also becomes a tax offender.

This is particularly critical in the case of inheritance. Due to a special tax standard (§ 153 AO), the heirs must notify the decedent of tax evasion “immediately” after the succession and pay the taxes. Otherwise, they themselves will become tax evaders.

3rd expiry of a self-disclosure

First: Do not contact the tax office in advance. If tax evasion is detected by the tax administration, the self-disclosure can no longer be effective. You should contact a tax advisor or lawyer for self-disclosure in a timely manner. This will determine the income of the past 10 years and on this basis prepare the self-disclosure and have it signed by you. Subsequently, it is sent to the competent tax office.

In our tax office, the self-disclosure is referred to as “rating of revenue”. The designation as “self-disclosure” is not provided for by law. However, it is important that all requirements for effective self-disclosure are met, in particular that the income is declared for 10 years and is complete.

Payment of the evaded tax, additional contribution and interest

From an evasion amount of EUR 25,000.00, an additional amount of 10 percent has to be paid to the State Treasury since January 1, 2015. If the evaded taxes exceed the amount of EUR 100,000.00, the additional contribution is 15 percent and from EUR 1,000,000.00 even 20 percent.

In addition, there are 6 percent evasion interest, which can be up to 60 percent for 10 years.

The payment of the tax, additional contributions and interest is mandatory for the effectiveness of the self-disclosure.

Good advice: 2 tax advisors and 2 tax attorneys for effective self-disclosure

Free download of the presentation on criminal tax law