What are the legal consequences of international tax evasion?
October 31, 2023 | 60,00 EUR | answered by Alexander Voigt
Dear International Law Attorney,
My name is Tina Voigt and I have an urgent question regarding the legal consequences of international tax evasion. In recent years, I have received income from abroad, which I did not declare in my tax return. Initially, I was not aware that I also have to pay taxes on these foreign-sourced income in Germany. However, I have now learned that international income must also be taxed here.
I am very concerned that my carelessness regarding international tax laws could lead me into legal trouble. What consequences could I face if the tax office finds out that I have not properly declared income from abroad? Could I face high penalties or even imprisonment?
I want to find a solution as soon as possible to correct my mistake and avoid any potential legal consequences. Is there a way to rectify my tax situation retroactively and protect myself from serious sanctions? What steps should I take to properly handle my tax matters in relation to international income in the future?
I thank you in advance for your assistance and expertise in this matter.
Sincerely,
Tina Voigt
Dear Mrs. Voigt,
Thank you for your inquiry regarding the legal consequences of international tax evasion. It is important that you address this issue and seek solutions to avoid any potential problems.
If the tax authorities find out that you have not properly declared income from abroad, various consequences may arise. In Germany, the principle of worldwide income applies, which means that all income, regardless of its source, must be taxed in Germany. Failure to declare this income constitutes tax evasion, which is a criminal offense.
The severity of the penalties and sanctions depends on various factors, such as the amount of taxes evaded, the duration of the evasion, and whether it was intentional or negligent. In the worst case scenario, you may face hefty fines and even a prison sentence.
However, it is possible to make a voluntary disclosure to the tax authorities to correct your wrongdoing and avoid criminal consequences. A voluntary disclosure must meet certain requirements, such as fully disclosing all undeclared income and paying the evaded taxes plus interest. It is advisable to seek advice from an experienced tax advisor or lawyer to avoid any mistakes.
To properly handle your tax matters concerning international income in the future, you should familiarize yourself with the tax obligations that apply to you. It is important to declare all income properly and, if necessary, seek advice from an expert to ensure compliance with all legal requirements.
I hope this information is helpful and I am available to answer any further questions you may have.
Sincerely,
Alexander Voigt, International Law Attorney
