Tax Fraud Risk: What Now

Tax Fraud Risk: What Now is a serious concern under German tax law – and if you suspect exposure under §370 AO, swift and strategic action is essential.
A tax fraud allegation can escalate quickly if not handled with care. Legal missteps or hasty replies may increase your personal liability and complicate your defence.
Protecting your rights requires a clear legal strategy.

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First Steps to Take

Do not panic, but avoid acting impulsively.
If you believe past tax declarations may contain errors, do not contact the tax office yourself.
Instead, secure all relevant documents and speak to a criminal tax attorney.
A proactive approach to managing your tax fraud risk can significantly increase your chances of avoiding prosecution or financial penalties.

Signs You May Be Under Observation

• Unusual audit letters or phone calls
• Banks request tax confirmation forms
• Inquiries about foreign accounts or transfers

These red flags may indicate the authorities are already gathering information.
Remain silent and seek counsel before responding.
Early legal support can help clarify your tax position and mitigate your tax fraud risk before it escalates into a formal investigation.

What If the Investigation Has Begun?

If your home or office is searched, do not interfere.
Say nothing without legal representation.
A lawyer can request access to files and negotiate terms of cooperation or settlement.
Reacting correctly in this phase is essential to contain the tax fraud risk and avoid further legal exposure.

Strategic Options

OptionEffectWhen PossibleSelf-disclosure (§371 AO)Immunity from prosecutionOnly before discovery by tax officeCorrection (§153 AO)Mitigating factorBefore formal inquirySettlement (§153a StPO)Dismissal against paymentFor minor or negligent faultsVoluntary repaymentSentence reductionAlways recommended

Final Tips

• Speak to a specialist attorney immediately
• Do not destroy or alter evidence
• Do not speak to authorities without legal protection
• Be strategic
• Ensure compliance in future filings

HORTMANN LAW advises founders, creators and businesses in sensitive criminal tax matters across Germany and internationally.

§ 370 AO – German Tax Code
Federal Central Tax Office (BZSt)
OECD – Tax Crime and Enforcement

Tax Criminal Law
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