BARBA & PARTNER RECHTSANWÄLTE – YOUR LAWYERS FROM MUNICH
Law Firm for Criminal Tax Law in Germany
Defense in Criminal Tax Law – Experience and Precision
Criminal tax law merges criminal and tax regulations in a uniquely complex way. It requires not only legal expertise but also in-depth understanding of economics and tax systems. Salvatore Barba, a certified criminal defense lawyer, represents both individuals and companies in all phases of criminal tax proceedings. He also advises tax consultants who become involved in investigations.
Substantive tax law is highly complex and differs significantly in structure and terminology from other areas of law. Only those with expertise in both criminal procedure and tax law can effectively defend clients in tax crime cases.
Our law firm handles both active investigations and preventive advisory work—for example, in cases involving voluntary disclosure or during tax audits. We focus on discreet, well-structured defense strategies, especially where tax and criminal law intersect.
Barba & Partner Rechtsanwälte – independent, discreet, competent, loyal, and empathetic.
German Criminal Tax Law – Structure and Fundamentals
Criminal tax law is a separate field within German criminal law. It governs the legal consequences of violating tax obligations. The central legal provision is Section 370 of the Fiscal Code (Abgabenordnung, AO), which covers tax evasion.
Most tax evasion cases begin with the filing of an incorrect or incomplete tax return—or the failure to file a required return. Taxes are considered “evaded” when they are not assessed, not assessed fully, or not assessed in time. However, such mistakes only become punishable if they result in actual tax loss. Whether an act is considered wrongful or significant depends on the applicable tax laws, such as German Income Tax Act (EStG) or the German VAT Act (UStG).
The Fiscal Code (AO) differentiates between tax crimes (Sections 369 et seq. AO) and administrative tax offenses (Sections 377 et seq. AO). A key feature of criminal tax law is its direct reliance on substantive tax legislation—such as the income tax or VAT law.
Other important provisions include:
- Section 371 AO – Voluntary Disclosure
- Section 373 AO – Handling of Illegally Obtained Tax Assets
- Section 378 AO – Negligent Tax Shortening (administrative offense)
- Section 379 AO – Tax Endangerment
- Sections 26b, 26c UStG – VAT-related offenses
- Sections 148 et seq. StGB – Counterfeiting of official stamps
Additional relevant provisions can be found in the Criminal Code (e.g., fraud under Section 263 StGB) and the Administrative Offenses Act (OWiG). Administrative offenses under Section 377 AO can result in fines, while tax crimes are prosecuted under Sections 369 et seq. AO.
Criminal tax cases mainly involve private individuals or company executives accused of violating tax duties. In some cases, tax advisors may also be implicated, for example, for alleged aiding and abetting.
Voluntary Disclosure – A Special Legal Option in German Tax Law
Voluntary disclosure under Section 371 of the German Fiscal Code (AO) is a notable legal mechanism in German criminal tax law that enables individuals to avoid criminal prosecution for tax evasion—if the disclosure is timely, complete, and accurate. It is intended to encourage taxpayers to restore compliance and allow the state to recover lost tax revenue. Similar concepts exist in other areas of law (e.g., in cases of subsidy fraud or money laundering), but voluntary disclosure in tax matters remains a distinct expression of active remorse. The full repayment of evaded taxes, interest, and any applicable penalties is a prerequisite.
However, even minor mistakes can void the protection offered by voluntary disclosure.
Common pitfalls include:
- Incomplete information (e.g., missing tax years or types)
- Late submission after a tax audit has already been announced
- Lack of cooperation in making payments
If the amount of tax evaded exceeds EUR 25,000, an additional penalty under Section 398a AO is required to secure immunity from prosecution.
Our Advice:
Never submit a voluntary disclosure without legal guidance. An experienced criminal tax lawyer will assess whether disclosure is still possible and how it must be structured to ensure protection against prosecution.
The Uli Hoeneß Case – A High-Profile Example
In 2014, Uli Hoeneß, then president of FC Bayern Munich, filed a voluntary disclosure that ultimately failed to meet the legal requirements. It clearly demonstrated that voluntary disclosure only leads to immunity from prosecution if it is submitted in a timely, complete, and formally correct manner.
Even minor errors can result in the loss of immunity and trigger criminal prosecution. The case ended in a prison sentence—a textbook example of how crucial timely and expert legal advice is in criminal tax law.
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Sanctions and Sentencing in German Criminal Tax Law
Penalties in tax crime cases are based primarily on the amount of tax evaded. The German Federal Court of Justice (BGH) has established sentencing guidelines that scale with the damage caused. From an evaded tax amount in the mid-five-figure range, prison sentences are typically imposed. For amounts exceeding one million euros, sentences are usually served without suspension.
Typical sentencing range in practice:
- Up to approx. EUR 50,000: usually a fine
- EUR 50,000 to 1 million: fine or prison sentence, often suspended on probation
- Over 1 million: typically imprisonment without suspension
Additional factors always influence sentencing, such as confessions, repayments, attempts at restitution, or procedural delays.
Additionally, other legal and economic consequences include:
- Interest and late-payment penalties
- Confiscation of evaded amounts
- Professional consequences (e.g., loss of licenses, permits or regulatory approvals)
- Reputational damage that may affect one’s career and business relationships
For self-employed professionals, freelancers, managing directors, and senior executives, a conviction can have existential consequences. Early and discreet legal defense is therefore essential.
The Investigation Process in Criminal Tax Cases
Criminal tax proceedings often begin unnoticed—triggered by routine tax audits, international data matching or disclosures (e.g., the Panama Papers), or whistleblower tips from former employees, partners or business partners.
In complex VAT fraud schemes (“carousel fraud”) within the EU, authorities increasingly rely on joint databases and begin investigations based on system alerts.
Once investigators suspect tax crime, they can open a case without notifying the accused. Formal notification typically comes with an advisement of rights. From that point on, no statement should be made without legal counsel.
Typical investigation measures include:
- Searches of homes or offices
- Seizure of documents or digital media
- Interrogation by tax investigators or prosecutors
- Asset freezes or account garnishment
The line between legal tax planning and criminal tax evasion can be blurry—and it continues to shift as legislation and case law evolve.
Our Advice:
Stay calm and call a defense lawyer immediately. Anything you say can be used against you later.
Tax Audits – Why Early Legal Support Matters
A tax audit is often the starting point of a criminal tax investigation—even if it initially appears to be just a routine review. Minor discrepancies in bookkeeping or tax filings may lead the tax office to suspect tax evasion. In such cases, auditors frequently refer the matter to the department for fines and criminal tax matters (Bußgeld- und Strafsachenstelle, BuStra) or to the tax investigation unit (Steuerfahndung), which will then assess whether to open formal proceedings.
These investigations are conducted by highly trained financial officials who are well-versed in both tax law and criminal procedure. This makes it all the more important to respond on an equal professional footing. A criminal defense lawyer with experience in criminal tax law can help guide the audit strategically, identify legal risks early on, and intervene when necessary. In many cases, it is advisable for the defense lawyer to remain in the background initially and only step in publicly once a formal investigation becomes likely.
A core element of the defense is ensuring the accurate calculation of the tax loss. The lower the established loss, the lower the potential penalty. Close cooperation with the client’s tax advisor is critical in this context to correctly present all relevant facts and assess any errors or ambiguities in the calculation.
Our advice:
Don’t wait until tax investigators are at your door. Legal counsel should already be involved during an ongoing audit—discreetly, competently, and with a clear strategy for defense.
Tax Advisor or Defense Lawyer – Who Handles a Criminal Tax Case?
Many individuals first turn to their tax advisor when faced with tax-related issues. However, if there is any suspicion of a criminal offense, it is essential to bring in an experienced defense lawyer. Tax advisors can quickly find themselves in a conflict of interest during a criminal tax investigation: unlike defense lawyers, they are not entitled to fully refuse to testify and their confidentiality obligations are limited.
The rule of thumb is:
→ The tax advisor handles the tax implications.
→ The defense lawyer protects you from criminal liability.
The best outcome is achieved through close but clearly defined cooperation between both advisors.
FAQ – Criminal Tax Law
When should I contact a lawyer in a criminal tax matter?
As soon as investigative measures are initiated—such as a search, an inquiry from the tax investigation unit, or a letter requesting a response. Early legal involvement can often prevent a public trial.
How much does a criminal tax lawyer cost?
Costs depend on the scope and complexity of the case. At Barba & Partner Rechtsanwälte, we prioritize transparency. You will receive a clear fee estimate before we take on your case.
Do I have to hand over everything during a search?
No. You have the right to remain silent. Only hand over what is specified in the search warrant, and call your lawyer immediately.
What happens if I submit a voluntary disclosure too late?
You lose the opportunity for immunity, and the investigation proceeds as usual. In such cases, we assess whether cooperating with the authorities could lead to a reduced sentence.
Your Contact in Criminal Tax Law
Rechtsanwalt Salvatore Barba is a certified criminal defense lawyer with more than 20 years of experience, including numerous complex tax crime cases. He successfully completed the advanced certification program in tax law for specialist lawyers and continues to build his expertise in this area.
During his time with a law firm in Miami (USA), Salvatore Barba gained practical experience in analyzing capital market structures and financial transactions in the so-called “gray capital market”—an area where tax and commercial criminal law frequently intersect.
Barba & Partner Rechtsanwälte advises and represents clients across Germany and in cross-border matters in German, English and Italian—particularly in cases involving international or EU dimensions.
Have you been accused of tax evasion?
Contact us today to confidentially discuss your case—in person in Munich or via video call.
Your lawyer in Munich
We provide legal advice to clients worldwide. Request a non-binding introductory meeting today.
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