Tax evasion under section 370 AO
Tax evasion is the core of German tax criminal law. It is committed by anyone who gives the tax authorities incorrect or incomplete information on facts relevant to tax, or fails in breach of duty to disclose them, and thereby reduces tax. The threshold to criminal liability is low and the consequences can be considerable, and above certain amounts the courts decide strictly between a suspended sentence and custody. That makes an early defence all the more important.
Call in confidence · +49 69 24746870
Intent decides,
not carelessness.
The offence.
Section 370 of the German Fiscal Code (Abgabenordnung, AO) covers two forms of conduct: the active false statement, meaning incorrect or incomplete information to the tax authority, and the unlawful omission, meaning leaving the authority in ignorance despite a duty to declare. Both must lead to a reduction of tax or to an unjustified tax advantage. The offence is intentional. A merely reckless reduction of tax is not a criminal offence but an administrative one under section 378 AO. The line between intent and recklessness is therefore a central point of defence.
The large-scale aggravated case
An especially serious case is generally present where tax is evaded on a large scale. Above that line the sentencing range rises, and the case law treats high amounts strictly, in particular on the question of whether a sentence can still be suspended. The amount is not just a number; it drives the whole sentencing framework, which is why establishing it correctly is part of the defence.
Limitation periods
Tax evasion is subject to limitation periods that differ between the ordinary and the aggravated case, and the point at which the period starts is often contested. Because the periods can be long and their calculation technical, whether an allegation is even still prosecutable is a question worth testing at the outset.
Voluntary disclosure
German law offers a route back to tax honesty through a voluntary self-disclosure (Selbstanzeige), which, if complete and made in time, can lead to impunity. Its requirements are strict and unforgiving: it must be complete, correct and made before discovery. A disclosure that is incomplete or too late can do more harm than good, so it should never be attempted without advice.
One partner. From the first call to the conclusion.
From the outset you speak with the partner who actually runs your case, not with an apparatus.
Tax evasion, briefly explained.
Is careless tax underpayment a crime?
No. Tax evasion under section 370 AO is intentional. A merely reckless reduction of tax is an administrative offence under section 378 AO, not a crime. The line between intent and recklessness is a central point of defence.
What does large scale mean?
An especially serious case is generally present where tax is evaded on a large scale. Above that line the sentencing range rises and the courts treat high amounts strictly, in particular on whether a sentence can still be suspended. Establishing the amount correctly is part of the defence.
Can a voluntary disclosure still help?
A voluntary self-disclosure (Selbstanzeige) can lead to impunity if it is complete, correct and made before discovery. The requirements are strict, and an incomplete or late disclosure can do more harm than good, so it should not be attempted without advice.
This page gives a general overview and does not replace advice on the individual case. Legal position: 2026.
Related pages.
See the wider picture in how a German white-collar case works and our work on customs criminal law.
A tax-evasion allegation?
We test the line between intent and recklessness, the amount, and the timing, and defend early where it counts.
Call in confidence · +49 69 24746870