Tax law is complex. Whether it is tax evasion through negligence and overly creative tax structuring or deliberate evasion, the tax authorities show no mercy. Criminal tax proceedings and fines have drastically increased over the years. Generally, these proceedings are resolved by the tax authorities via written procedures (penalty orders); however, in some cases, the public prosecutor's office is involved.

Our experience covers the entire range of criminal tax law - from advice on self-disclosure to support in penalty order proceedings to defense in proceedings before the criminal courts, with which we are just as well versed as in proceedings before the fiscal courts. Our approach is to always develop the argumentation and strategy in the light of both proceedings and to work towards a quick and, where possible, noiseless settlement.

Determining the facts of life and assessing them from a tax perspective is particularly important in criminal tax proceedings. The view of the tax authorities is not always in line with the case law of the tax courts or the prevailing doctrine. In such cases, it is necessary to compile sound arguments in order to refute or at least weaken the arguments of the investigating authorities. Even if in the end it turns out that tax claims objectively exist, there is often still sufficient room for argumentation on the subjective level, which is important for criminal proceedings.

On behalf of our clients, we prepare detailed legal opinions on tax-related issues, which help them to present and evaluate complex facts in the light of case law and tax doctrine. In this way, we create a valid basis for discussions with the tax authorities in mutual agreement proceedings, as well as establishing an effective defense in case criminal tax proceedings are unavoidable.

Surprise is the trump card up investigators' sleeves. When companies or private individuals are unexpectedly visited by the police and the public prosecutor's office, the shock is usually deep. This is all the more true if, in addition to the search warrant, there is also an arrest warrant. The first reaction should always be to call in an experienced criminal defense lawyer.

We have assisted in multiple searches throughout the years. In situations of stress, we maintain a composed approach when conducting searches. Our priority is to ensure that the search is executed within the legal boundaries established by the law and the warrant. Moreover, we guarantee that no excessive evidence is gathered during the procedure. The mere presence of legal counsel often helps to make the dialogue between investigators and searched individuals more objective and helps to relax the situation to a certain extent.

If the tax return was incorrect or incomplete, or if income was completely concealed from the tax authorities, it is usually only a matter of time before the tax evasion brings the investigators onto the scene. Tax law provides a last chance to return to tax honesty without incurring penalties: the voluntary disclosure.

Filing an effective voluntary disclosure requires a high level of expertise and careful preparation of the causes and motives for the incorrect or incomplete tax return: Was the tax evasion caused by recklessness, negligence or intent? Especially in companies, the clarification of the facts here is usually anything but trivial. The decision as to whether a voluntary disclosure should be made at all is also linked to a large number of preliminary questions that often have to be answered under great time pressure. One thing is certain: once the tax authorities become aware of tax evasion, voluntary reporting is no longer an option.

Our team of tax experts has prepared a range of voluntary disclosures over the years that cover various aspects, such as assessing the probability of exemption from penalties, evaluating the anticipated tax arrears, clarifying the factual basis of the case, and negotiating with the tax authorities.

Establishing effective compliance is a primary responsibility of management in modern companies. Demonstrating compliance can mitigate liability claims for executives and management or minimize risk to an appropriate level. Additionally, operational compliance systems shelter companies from reputational damage and unexpected financial obligations.

Particularly, tax law is highly susceptible to liability due to its complexity. Tax processes impact every department in the company, and require input from numerous employees.

Our team can provide guidance on evaluating tax risks and establishing a Tax Compliance Management System specific to your organization. If you already have a Tax CMS, we can carry out a thorough review and offer advice on any areas that may need improvement.

Management bodies are obliged by their duty of legality to investigate violations of statutory regulations and internal compliance requirements. This will become considerably more important in the coming years due to the obligation to install whistleblower systems. Internationally active companies, in particular, cannot do without adequate control systems in view of the requirements of the US Ministry of Justice and the SEC.

We support you in pursuing indications of misconduct in your company that is relevant under (tax) criminal law. We examine the information provided by whistleblowers and determine the facts in question through interviews and the review of relevant documents within the company. We advise the management on the measures to be taken, whether these are obligations to make corrections in the tax area, disciplinary steps as an employer or a report to the financial or criminal prosecution authorities.

The starting point for criminal tax investigations is often a tax audit. Here, the tax assessment office and the criminal investigation authority usually work hand in hand. The appeal procedure offers the opportunity to intensively discuss the tax-related issues with the authority and to achieve at a new assessment of the facts, which then also becomes relevant for the criminal proceedings.

In the course of appeal proceedings, we first file an objection on your behalf so that the tax assessment does not become final. We conduct discussions with the tax authorities on your behalf and together with you and file applications for suspension of execution in order to avoid the due date of tax payments until the proceedings are finally concluded - at best in your favor.

Experience shows: Especially when insisting on the findings of a tax audit, the tax authorities often remain firm. In this case, the next step is the only one that helps: appealing to the tax court.

Unlike civil or administrative courts, there are only two court levels in the jurisdiction of the tax courts. The tax court is the only level that assesses the facts of the case in their entirety. The Federal Tax Court alone reviews whether the law has been applied correctly. In order to be successful before the tax courts, it is therefore essential to fully understand the facts of the case from the taxpayer's point of view and to provide the necessary evidence.

On the basis of our years, sometimes decades of experience in litigation, we will represent you before the tax courts. We advise you in detail on the prospects of success and possible risks of a lawsuit and, where possible, work towards an amicable solution with the tax authorities. If a conflict cannot be settled, we will fight with commitment for your interests.