Criminal Tax Proceedings

Criminal tax proceedings (Steuerstrafverfahren) are the special form of criminal procedure used when there is a suspicion of a tax offence, in particular tax evasion under § 370 AO. They follow the rules of the German Code of Criminal Procedure, supplemented by §§ 385 et seq. of the Fiscal Code (Abgabenordnung, AO).

Proceedings are typically initiated by the criminal and administrative offences unit (Bußgeld- und Strafsachenstelle) of the tax office, by the tax investigation service (Steuerfahndung) or by the public prosecutor's office. Once initiated, the accused is no longer subject to penalty-backed cooperation duties under the tax procedure: the rights to remain silent and not to incriminate oneself apply. Tax filing duties for periods not affected by the offence, however, generally remain in force.

The taxation procedure and criminal investigation run in parallel. Evidence from a tax audit can be transferred into the criminal proceedings; conversely, the tax investigation service can deploy extensive coercive measures such as searches and seizures. Successful defence requires early coordination between criminal defence and tax advice so that statements, voluntary disclosure options and consensual factual agreements (tatsächliche Verständigung) can be deployed in a coherent strategy.