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Criminal tax law attorney in Munich

Defense and Legal Advice in Criminal Tax Law

schirach.law is a Munich-based law firm specializing in commercial and criminal tax law. In the area of criminal tax law, we defend entrepreneurs, managing directors, executives, private individuals, and companies nationwide in complex proceedings.

Our legal counsel often begins long before any charges are filed. We support clients from the moment suspicions first arise, through a tax audit, prior to a potential tax adjustment or voluntary disclosure, and throughout all phases of a criminal tax investigation or court proceeding.

In criminal tax law, tax and criminal law issues are directly intertwined. Therefore, it is not enough to simply calculate the potential back taxes owed. Equally important is determining who was responsible for a statement or decision, what information was available, and whether the conduct was intentional, reckless, or simply erroneous.

The sooner these questions are answered, the easier it will be to plan the next steps.

schirach.law's Specialization in Criminal Tax Law

schirach.law advises and defends clients nationwide in complex tax evasion cases. Within the team, there are various areas of expertise, ranging from defending against charges of tax evasion to reviewing, preparing, and filing voluntary disclosures that can lead to immunity from prosecution.

Attorney Marco Benedikt von Schirach is a specialist lawyer for criminal law and a certified defense attorney for tax and white-collar crime (DSV eV) . He is also a certified consultant for crypto assets and taxes (WIRE) . His legal practice focuses in particular on complex white-collar and tax crime cases, as well as related asset, money laundering, and crypto-related issues.

Attorney Frédéric Heindel, LL.B. , is a certified defense attorney specializing in tax and white-collar crime (DSV eV). His areas of expertise include voluntary disclosures in tax-related criminal cases, particularly in the investigation of undeclared or incompletely declared matters related to gift tax.

Attorney Julian Korbinian Huber is a certified tax criminal law consultant and also holds the additional qualification "Certified Consultant for Crypto Assets and Taxes (WIRE)" . His work encompasses white-collar and tax criminal proceedings as well as matters relating to crypto assets.

Attorney Simon Hannes Bloch defends clients in tax evasion cases, particularly those involving allegations of tax fraud, and has experience with complex VAT and cross-border issues, including proceedings related to VAT carousel fraud. Another focus of his practice is the review, preparation, and filing of voluntary disclosures that can lead to immunity from prosecution.

When Should You Hire a Criminal Tax Lawyer?

As early as possible—especially before you provide any information to the tax investigation unit, the tax office, or the district attorney’s office regarding a matter that may be relevant to criminal law.

Advice on criminal tax law is particularly useful when

• the tax investigation unit contacts you,
• if a government agency initiates criminal tax proceedings or proceedings to impose a fine,
• Investigators search business premises or private residences,
• Authorities may seize documents or data storage devices,
• you receive a summons or notice of hearing,
• criminal law risks become apparent during a tax audit,
• the tax office requests an explanation for suspicious transactions,
• tax returns may have been incorrect or incomplete,
• If you are considering filing a correction or a voluntary disclosure,
• if there is any unexplained income, foreign accounts, or assets,
• Crypto gains or other digital transactions may not have been fully reported, or
• Managing directors or other responsible individuals have come under scrutiny personally.

Before making any statement, it should be clear in what capacity the person in question is acting and what consequences their statements may have.

In criminal tax law in particular, tax proceedings and criminal proceedings often run concurrently. For this reason, tax-related communications should always be coordinated with the criminal defense strategy.

Tax Evasion Under Section 370 of the German Tax Code (AO)

Tax evasion may occur when a person provides inaccurate or incomplete information regarding facts relevant to taxation, or conceals such information in violation of their duty, thereby reducing their tax liability or obtaining unjustified tax benefits.

Typical scenarios include, for example:

• unexplained income,
• incorrect or incomplete tax returns,
• undisclosed foreign bank accounts,
• unexplained investment income,
• incorrect sales tax or payroll tax information,
• operating expenses incorrectly reported,
• hidden profit distributions,
• tax-related crypto transactions or
• tax compliance violations within a company.

However, not every false statement automatically leads to a criminal charge. Rather, the decisive factors are how the specific circumstances should be classified and what the person responsible knew.

Not every mistake constitutes tax evasion

An incorrect tax return does not automatically constitute willful tax evasion.

In addition to the tax implications, what matters most is what the responsible person knew and intended at the time the declaration was made.

A simple mistake may have no criminal implications. In the case of a significant breach of due diligence, however, reckless tax evasion may be considered. Only when there is intentional conduct is tax evasion under § 370 of the German Fiscal Code (AO) at issue.

This distinction plays a central role in many criminal tax proceedings. Therefore, intent should not be inferred solely from an objectively incorrect tax return.

What is the penalty for tax evasion?

Section 370 of the German Fiscal Code (AO) provides for a fine or imprisonment for up to five years in the standard case.

In particularly serious cases, the statutory penalty ranges from six months to ten years.

However, the potential consequences in a specific case depend on many factors. These include, in particular, the amount evaded, the duration of the evasion, the number of tax types and time periods involved, personal liability, and the nature of the alleged offense.

The behavior following the disclosure of the facts may also play a role.

In addition to criminal penalties, this may also result in back taxes, interest, asset forfeiture, and other financial consequences.

Reckless tax evasion under Section 378 of the German Tax Code (AO)

Not every instance of tax noncompliance is intentional.

Section 378 of the German Fiscal Code (AO) classifies reckless tax evasion as an administrative offense. It applies when there is no intentional tax evasion, but the person concerned is accused of a particularly serious breach of due diligence.

The distinction between intent, recklessness, and a simple mistake can have a significant impact on the further course of the proceedings.

Therefore, the defense should carefully examine whether the investigating authorities can actually prove intentional conduct.

How do criminal tax proceedings work?

A criminal tax proceeding begins with an initial suspicion of a criminal offense.

Triggers may include, for example, findings from a tax audit, audit notices, reports, bank information, international reporting systems, or other tax irregularities.

Depending on the case, the Office for Administrative and Criminal Offenses, the Tax Investigation Unit, the District Attorney's Office, or other investigative agencies will then take action.

For the defense, the first priority is to understand the specific allegation and the status of the proceedings.

Investigations and inspection of files

Once we have taken on the defense, we first determine exactly what the authorities are accusing the client of.

As soon as the documentation allows for a thorough review, we analyze, among other things:

• which types of tax are affected,
• which time periods are being examined,
• how the authorities calculate the potential tax shortfall,
• what documents and data are available,
• who was responsible for certain statements or decisions,
• what tax-related objections exist and
• whether intentional or merely reckless conduct can be proven at all.

Criminal tax proceedings are often based on extensive calculations, estimates, and data sets. Therefore, tax and criminal law analyses must be closely intertwined.

At the same time, the analysis of the case files reveals the assumptions made by the investigating authorities and the areas where the defense can focus its efforts.

Tax proceedings and criminal proceedings are not the same thing

The tax assessment process determines what tax is actually owed.

In criminal proceedings, on the other hand, the focus is on personal criminal liability.

Both proceedings are closely related, but they follow different rules. Therefore, a tax settlement regarding certain calculations does not automatically bring the criminal proceedings to an end.

Conversely, the termination of criminal proceedings does not necessarily resolve all tax issues.

A robust strategy must therefore take both levels into account and keep an eye on how they affect each other.

Statement, dismissal, summary judgment, or trial

Whether a defendant chooses to comment on the charges against them is a strategic decision.

In some cases, making a statement early on can help clear up factual or legal misunderstandings. In other cases, it makes more sense not to provide any information at first.

The relevant factors include, among others, the evidence, the alleged amount of tax evasion, personal responsibility, and the status of the proceedings.

Depending on the situation, various ways of concluding the proceedings may be considered. However, it is not possible to make any reliable promises regarding a specific dismissal or other resolution.

Tax Audits and Criminal Tax Law

Many criminal tax proceedings arise during a tax audit.

Suspicious transactions, unexplained money transfers, contradictory information, or missing documents can give rise to suspicion of criminal activity.

As soon as such a suspicion becomes more concrete, the communication to date should be reevaluated.

Taxpayers continue to have a duty to cooperate in tax proceedings. At the same time, no one may be compelled to incriminate themselves in connection with a tax offense or a tax violation.

It is precisely this tension that makes a coordinated strategy necessary.

That is why, when necessary, we coordinate our tax strategy with tax advisors or other tax specialists.

Search by the Tax Investigation Unit

During a search, those involved should not resist. At the same time, a criminal defense attorney should be consulted as soon as possible.

As a general rule, no statements regarding the alleged offense should be made without prior consultation.

Searches conducted by the tax investigation unit usually come as a surprise. Investigators can search both private residences and business premises.

They often secure large volumes of documents, computers, cell phones, or other data storage devices.

The defense examines, in particular:

• the search warrant,
• the specific charge,
• the individuals and time periods involved,
• the scope of the measure,
• seizures and confiscations,
• the handling of digital data, and
• the other options available under criminal procedure.

Once the immediate measures have been taken, the strategic evaluation begins.

This raises the following questions in particular: What information do the investigating authorities already have? How do they calculate the potential tax shortfall? What further actions can be expected? And which tax and criminal law risks need to be addressed first?

Thus, attention is focused not only on the search that has already taken place, but also on the investigators' next possible steps.

Voluntary Disclosure of Tax Evasion under Section 371 of the German Tax Code (AO)

An effective voluntary disclosure may lead to immunity from prosecution, provided the legal requirements are met.

However, it is neither an informal confession nor a simple standard form.

In order for the desired exemption from liability to take effect, the legal requirements must be met. These include, in particular, the necessary completeness, timely submission, and the absence of any relevant grounds for denial.

In addition, the relevant tax types and periods must be entered correctly.

Therefore, a voluntary disclosure should not be filed simply because a tax error has been discovered.

First, it must be determined whether intentional tax evasion is even an issue or whether a correction under § 153 of the German Fiscal Code (AO) is sufficient.

When is it still possible to file a voluntary disclosure?

Whether a voluntary disclosure can still be effective depends largely on whether a statutory barrier to disclosure has already arisen.

The situation can be problematic, for example, when

• the initiation of criminal or administrative fine proceedings has already been announced,
• there is a relevant audit directive,
• officials have already appeared in connection with certain audits or investigations,
• the act had already been discovered and the person concerned knew this or should have anticipated it, or
• there are other statutory grounds for exclusion.

Therefore, before any disclosure is made, it should be determined whether a voluntary disclosure is still legally possible.

Completeness and Payment

A voluntary disclosure must fully cover the types of taxes and time periods required by law.

Missing or incorrect information may jeopardize the desired immunity from prosecution. Therefore, the facts of the case must be as fully established as possible before filing the voluntary disclosure.

In addition, there are the required tax payments and interest as prescribed by law.

In certain cases involving larger amounts of tax evasion or specific circumstances, additional payments may also be required.

§ 398a of the German Tax Code (AO) for certain higher amounts of tax evasion

In certain cases, Section 371 of the German Fiscal Code (AO) does not directly result in immunity from punishment, even if disclosure has been made.

However, subject to certain additional conditions, Section 398a of the German Fiscal Code (AO) may allow the authorities to refrain from criminal prosecution.

To do so, the taxpayer must pay, among other things, the evaded taxes, the applicable interest, and an additional sum of money.

Whether § 398a of the German Fiscal Code (AO) applies in this specific case must therefore be examined separately.

Correction under Section 153 of the German Tax Code (AO) or Voluntary Disclosure under Section 371 of the German Tax Code (AO)?

Not every correction to a tax return constitutes a voluntary disclosure.

Anyone who subsequently realizes that a filing they submitted is incorrect or incomplete—and that this could result in underpayment of taxes or has already resulted in underpayment—may be required to report and correct the error under the conditions set forth in § 153 of the German Fiscal Code (AO).

A voluntary disclosure under § 371 of the German Fiscal Code (AO), on the other hand, applies to cases involving alleged intentional tax evasion, with the aim of obtaining immunity from prosecution under certain conditions.

The key factor in determining the scope of the statement is what the responsible person knew or believed to be possible at the time of the original statement.

For this reason, a correction should not be hastily labeled as a “correction” or “voluntary disclosure.”

First, the underlying facts must be clarified. Only then can one determine which legal course of action is appropriate.

If you discover tax discrepancies on your own—what should you do?

Anyone who discovers a potential tax error on their own should first reconstruct the facts of the case and not rush to explain the situation to the tax authorities.

Typical triggers include, for example:

• missing or incorrect tax documents,
• newly discovered foreign accounts,
• investment income not fully reported,
• Discrepancies between accounting records and tax returns,
• incorrectly classified business expenses,
• unexplained cryptocurrency transactions or
• A tax advisor's comments regarding past discrepancies.

First, reconstruct the facts of the case

First, it should be determined which types of taxes and time periods are involved.

Next, it must be determined which statements were made, which documents are missing, and when the inaccuracy was discovered.

Equally important is the question of who had what information and when.

Only then can one determine whether a standard tax adjustment is sufficient or whether there is a risk of criminal tax liability.

No Premature Disclosure

A spontaneous correction can be problematic if there is indeed a suspicion of intentional tax evasion.

Conversely, an objective error should not be hastily classified as a criminal offense.

For this reason, it is advisable to first review the facts of the matter, potential liability, and the appropriate form of disclosure on a confidential basis.

This helps prevent a well-intentioned statement from triggering unnecessary criminal consequences or from causing an existing course of action to be lost.

Coordinate between tax advisors and criminal defense attorneys

In more complex cases, criminal defense attorneys and tax advisors often work closely together.

Above all, the tax advisor can assist with tax review and calculation. At the same time, the criminal defense attorney assesses the criminal liability risk, the status of the proceedings, and possible options for corrections or voluntary disclosure.

Communication with the tax office, the tax investigation unit, or the public prosecutor's office must also be incorporated into this strategy.

Clear lines of responsibility therefore help to clearly separate tax and criminal law issues from one another while still ensuring they are coordinated.

Criminal Tax Law for Business Owners and Executives

Tax obligations within a company are often shared among several people and departments.

As a result, senior management, the finance department, accounting, the tax department, and external consultants may all be involved in decisions that have tax implications.

If irregularities occur, therefore, simply finding that a statement is objectively false is not sufficient.

In addition, the following needs to be clarified:

• Who had what information?
• Who was responsible for the statement?
• Who made the final decision?
• What control mechanisms were in place?
• Which tasks were delegated?
• Who was actually able to spot an error?

Particularly in companies where work is divided among employees, an individual’s criminal liability must be carefully distinguished from the liability of other parties involved.

Tax Evasion in Businesses

Criminal tax law charges are generally brought against individuals.

Nevertheless, this could have significant legal and economic consequences for the company itself.

In addition to back taxes and interest, other potential consequences include, in particular, fines, forfeiture measures, liability issues, and consequences under commercial or public procurement law.

The company's reputation may also be affected.

Furthermore, the company's interests do not always align with the personal defense interests of individual board members or employees.

Therefore, potential conflicts of interest should be identified early on, and the respective roles should be clearly separated.

Criminal tax law and cryptocurrencies

Cryptocurrency transactions that are not reported or are reported incompletely may give rise to criminal tax law issues.

Those who may be affected include, among others:

• Trading and swaps,
• Staking,
• Mining,
• Lending,
• Airdrops,
• DeFi protocols,
• Liquidity pools,
• token sales as well as
• commercial or business activities involving cryptocurrencies.

This process is often challenging because transactions can be spread across multiple wallets, exchanges, and networks.

In addition, automated tax reports may differ from one another or incorrectly classify transfers between your own wallets.

For this reason, technical transaction data and tax valuation must be reviewed separately and then reconciled.

schirach.law combines expertise in criminal tax law with a deep understanding of digital assets.

More on this: Cryptocurrency Criminal Law and Cryptocurrencies

Foreign Accounts and Cross-Border Issues

Undeclared foreign income or assets are among the classic areas of risk under criminal tax law.

The following groups may be particularly affected:

• Foreign accounts,
• Investment income,
• Investments,
• Real estate,
• Foundations,
• Trusts or
• Business activities abroad.

Through international information exchange and other sources, German tax authorities now receive extensive data on cross-border matters.

However, this does not automatically lead to a criminal charge.

Rather, the decisive factors are the specific tax obligations, residency, actual structures, and the knowledge of the person concerned.

Before making a belated disclosure, it should therefore be determined whether a correction is sufficient, whether a voluntary disclosure is required, or whether a defense case already exists.

Criminal Tax Law and White-Collar Crime Law

Criminal tax proceedings often do not occur in isolation.

Depending on the circumstances, in addition to tax evasion, fraud, embezzlement, bankruptcy offenses, money laundering, or the withholding of social security contributions may also be involved.

Conversely, investigations under commercial criminal law can raise new tax issues.

That is why schirach.law combines criminal tax defense with a special focus on white-collar crime.

More on this: White-Collar Crime Law in Munich

Criminal Tax Law in Munich and Nationwide

schirach.law is headquartered in Munich and represents clients throughout Germany.

Our services are aimed in particular at entrepreneurs, managing directors, executives, private individuals, and companies facing complex criminal tax law issues.

In-person meetings can be held in Munich. In addition, we provide representation in criminal tax proceedings throughout Germany.

Frequently Asked Questions About Criminal Tax Law

Is every error on a tax return considered tax evasion?

No. Tax evasion requires intentional conduct.

Depending on the circumstances, the case may instead involve reckless tax evasion, a simple mistake, or conduct that is not subject to criminal or administrative penalties at all.

That is why it is always necessary to determine what the responsible person knew and how the specific inaccuracy arose.

Do I have to testify before the tax investigation unit?

As a defendant, you are not required to incriminate yourself.

Whether you are required to appear at a hearing depends, among other things, on who summoned you and in what capacity you are to be heard.

For this reason, the specific status of the proceedings should be reviewed before making any statement.

What should I do if I'm subjected to a search by the tax investigation unit?

Do not resist and contact a criminal defense attorney as early as possible.

As a general rule, you should not make any statements regarding the alleged offense without first consulting an attorney.

The defense should then review the search warrant, the seized items, and the specific investigative approach.

Can I easily correct an incorrect tax return?

Not always.

If an error is discovered after the fact, a correction may be required under § 153 of the German Fiscal Code (AO).

If, on the other hand, there is suspicion of intentional tax evasion, one should determine—before making any corrections—whether the conditions for a voluntary disclosure under § 371 of the German Fiscal Code (AO) apply.

When is it still possible to file a voluntary disclosure?

A voluntary disclosure can only be effective as long as no statutory grounds for exclusion have arisen and the statutory requirements are met.

Therefore, the legal situation should be reviewed before any disclosure is made.

Especially in the case of audits that have already been announced or known investigative measures, the timing can be crucial.

Is a voluntary disclosure for a single year sufficient?

In many cases, a declaration limited to just one year is not sufficient.

Section 371 of the German Fiscal Code (AO) generally requires full disclosure of all tax offenses relevant under the law for a given type of tax during the applicable time periods.

An incomplete voluntary disclosure can therefore jeopardize the intended immunity from prosecution.

What happens if I discover tax errors on my own?

First, it should be determined which types of taxes and time periods are affected and how the original error occurred.

Based on this, it is possible to determine whether a standard adjustment is sufficient or whether there is a risk of criminal tax liability.

Premature disclosure should be avoided as long as this classification remains undecided.

Can a tax audit and criminal proceedings take place at the same time?

Yes.

Tax and criminal proceedings may take place simultaneously. However, the two types of proceedings are governed by different rules and serve different purposes.

For this reason, tax compliance and criminal defense should be coordinated.

What are the consequences of tax evasion?

The basic offense under § 370 of the German Fiscal Code (AO) is punishable by a fine or imprisonment for up to five years.

In particularly serious cases, the statutory penalty ranges from six months to ten years.

However, the specific sanction that is actually considered always depends on the particular case.

Does schirach.law only represent clients from Munich?

No.

schirach.law is headquartered in Munich, but advises and defends clients nationwide in criminal tax proceedings.

Particularly in the case of complex proceedings, the location of the competent authority is therefore not a determining factor in accepting a case.

Provide Clarity Early On

Anyone who discovers a tax discrepancy, is undergoing a tax audit, or is already facing an investigation by the tax authorities or the public prosecutor’s office should first determine what tax and criminal risks actually exist.

Before making statements, voluntarily submitting documents, or making extensive corrections, the specific status of the proceedings should be reviewed.

This makes it possible to determine what information is needed, whether a correction or voluntary disclosure is appropriate, and which defense strategy is best suited to the situation at hand.

schirach.law advises and defends entrepreneurs, managing directors, executives, private individuals, and companies in complex criminal tax proceedings—nationwide from its Munich office.

Contact schirach.law

Theatinerstraße 40–42
80333 Munich

Phone: +49 89 443 695 60
E-Mail: kanzlei@schirach.law