Countdown for tax frauds in Germany

More than 30.000 tax frauds reports up to October 2014 – a new record.

Like we assumed and informed you before (see our article “tax fraud reports in Germany” from June 2014), tax fraud reports will be more expensive in the future, because up from the year 2015 there will be stricter laws in Germany.

People doing tax frauds in Germany get more and more scared. The amount of tax fraud reports rose up to a new record in 2014. The record result of the year 2013 (around 24.000 tax fraud reports) is long ago. The reason for such a run is pretty clear. Up from January 2015 the affected people will have to pay much more money to achieve a penalty free tax fraud report. In detail:

  • The limit for a penalty free report sinks from € 50.000 to € 25.000.
  • The penalty fee is 10 %.
  • Up from the amount of € 100.000 the penalty fee is 15 % and up from € 1.000.000 even 20 %.
  • Besides also the interests (6 % per year) has to be paid immediately.

Author: Claudia Keidies, Partner at Somann & Scheller, Hamburg