Evaded sales tax? What many small businesses do not know: This is punishable by law

Tax offices are increasingly taking action against so-called "VAT parkers" - even imprisonment threatens

If VAT is not paid to the tax office even though it has been collected, this can constitute a criminal offense - usually tax evasion in accordance with Section 370 of the German Fiscal Code (AO).

When does tax evasion occur?

Tax evasion is committed by anyone who:

makes incorrect or incomplete statements to the tax office,

or conceals tax-relevant facts,

and thereby reduces taxes or obtains an unjustified tax advantage.

So if someone collects VAT from the customer but does not pay it to the tax office, even though they are obliged to declare it, they are reducing the tax - and that is a punishable offense.

Possible consequences:

A fine or imprisonment for up to five years (up to ten years in particularly serious cases).

In addition: back payment of taxes, interest, possibly late payment penalties.

For commercial entrepreneurs: Risk of revocation of the business license or entry in the central business register.

In insolvency proceedings: Refusal of residual debt discharge (Section 290 InsO) if tax offenses have been committed.

Special case: negligence

If the VAT was not paid intentionally but negligently, this can be punished as reckless tax evasion according to § 378 AO - an administrative offense that can be punished with a fine of up to 50,000 euros.

Recommendation:

In the event of problems with the payment of VAT or uncertainties about obligations:

Speak to a tax consultant or lawyer for insolvency law, tax law and criminal law at an early stage.

If you make a voluntary disclosure before it is discovered by the tax office, you may be exempt from punishment under Section 371 AO - but only under certain conditions.

Verein für Existenzsicherung e. V.
Hermann-Löns-Str. 14
85757 Karlsfeld
Germany

https://vfe-schuldenberatung.de/

Herr Johann Tillich
0813193298
08131996536
johann.tillich@vfe-tv.de

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This release was published on openPR.