Tax Criminal Law and Customs Criminal Law

Cash accounting, summary risk assessment, IDEA, time series comparison, reference rates, (in)security surcharges - audits by the tax authorities harbor potential for conflict. The feared consequences are the estimation of the basis for taxation and the initiation of criminal tax proceedings. The announcement of the audit order or the appearance of the auditor are also grounds for blocking a voluntary declaration that exempts the taxpayer from prosecution.

The tax criminal investigation department often uses the surprise situation of the search for interrogation attempts that should be resisted: "Confession is good for your soul, but bad for your case." Not only defendants have the right to the presence of their criminal defense attorney, witnesses may also call in a witness counsel at any time. As a matter of principle, no statements should be made without the presence of a lawyer.

If the taxpayer's records are not to be used as a basis for taxation or if they are not (or no longer) available, the tax office may estimate the basis for taxation. The court can also make an estimate in criminal proceedings. Experience has shown that circumstances are often not taken into account, which can have a significant effect in favor of the taxpayer or the defendant.

Tax evasion should not pay. For this reason, evaded taxes are not only collected by the tax offices, but are also confiscated by the criminal justice system. In order to secure this confiscation, a property arrest is often already issued during the preliminary proceedings. The arrest is enforced by seizing the defendant's accounts, and any cash found during the search is seized.

Due to the amount of the anti-dumping duties and typically repeated import transactions, import duties to be collected quickly reach considerable amounts. In case of evasion of anti-dumping duties, severe fines or even imprisonment may be imposed. The non-preferential origin, the customs value and the correct classification of the goods in the Combined Nomenclature are often disputed.

Any person has the right to appeal against a decision taken by the customs authorities in connection with the application of customs legislation which concerns him directly and personally (Article 44 (1) sentence 1 Union Customs Code). In Germany, an appeal is permitted under the German Fiscal Code (Abgabenordnung). According to Art. 116 et seq. of the Union Customs Code, a refund or remission of import duties may also be considered.

There is no specific provision for smuggling in German criminal law; it is punishable as tax evasion (the second alternative of Section 373 (1) sentence 1 AO is no longer relevant in practice following the abolition of the spirits monopoly). To mitigate the effects in travel, the legislator created the so-called smuggling privilege - evasion of up to 250 euros is not to be prosecuted as a criminal offense. Instead, a customs surcharge is levied.

Surveillance of cross-border traffic in cash and equivalent means of payment by customs is intended to combat money laundering, terrorist financing and organized crime. However, the detection of tax crimes is likely to be at least a secondary purpose. The Customs Administration Act allows customs to intervene extensively and threatens substantial fines for numerous offenses.

Violations of foreign trade criminal law can have serious legal and economic consequences. Typical violations include exporting embargoed goods, selling goods or services to sanctioned countries or persons, or exporting dual-use items. Consequences of violations of the German Foreign Trade and Payments Act  include seizure of goods, confiscation of proceeds of crime and imprisonment up to 15 years.