Tax Evasion Under Government Scrutiny
The issue of undeclared foreign assets remains highly relevant, especially due to the German tax authorities’ purchase of data carriers (so-called data CDs) from Switzerland and other former tax havens, and the persistent media coverage. The Panama Papers and the names of famous individuals with so-called black accounts abroad, who have not submitted effective voluntary disclosures through knowledgeable lawyers or tax advisors, frequently dominate the media debate.
However, it is also a fact that the German government has been consistently working for years to curb tax evasion by German taxpayers entirely. The legislature employs various measures to combat tax evasion, such as the automatic exchange of information between countries on foreign accounts, gradually closing many loopholes. The introduction of the lifelong identification number, the tightening of voluntary disclosure regulations, the new transparency register, the abolition of the 500-euro note, the lowering of the limit for anonymous cash deposits from EUR 15,000 to EUR 10,000, and the regulations for tamper-proof electronic cash registers are just a few of the numerous measures to tackle black money and tax evasion. There is currently no end in sight for further legislative tightening both nationally and internationally.
Voluntary Disclosure of Taxes: Timing Is Crucial
Whether as a company manager discovering tax evasion by a predecessor or personally neglecting the proper declaration of income, the risk of detection with criminal consequences looms due to whistleblowers, tax audits, control notices, and the aforementioned legislative measures, unless a timely and effective voluntary disclosure is made.
In other cases of tax evasion (e.g., with Spanish vacation properties S.L.), the risk of missing the window for voluntary disclosure is always present. Only those who submit an effective (i.e., timely) voluntary disclosure under § 371 of the German Fiscal Code to the tax office will be rewarded with the exemption from punishment.
Tax Voluntary Disclosure – Trust in Experience
RUGE FEHSENFELD has extensive experience in this specialized area of tax criminal law, with numerous voluntary disclosures in both the private and business sectors, and over 200 successfully disclosed foreign accounts. We are familiar with a wide range of account documents from foreign private and major banks, as well as insurance companies and foundations. We are regularly recommended by reputable foreign financial institutions.
The voluntary disclosure to the tax office is a highly sensitive and often very emotional issue for clients. We understand this unique responsibility and value the trust placed in us. We guarantee not only absolute discretion from the first contact to the conclusion of the procedure but also a professional, swift, and above all, successful resolution of the sensitive tax matter based on our extensive experience.
