Do tax advisors have a duty of confidentiality?
August 30, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen
We are currently discussing in our circle of friends and would like to know for sure: Do tax advisors have a duty of confidentiality? If so, from when does this apply? Are they not even allowed to disclose information from an initial consultation? And: What does a tax advisor "have" to do if he knows (or suspects) that his client is evading taxes or doing illegal activities? Does the tax advisor commit a crime himself if he knows that taxes are being evaded and still "helps" his client? Is he allowed to provide "advisory" services for the purpose of tax evasion? And what happens if he breaks his duty of confidentiality, will he be punished or rewarded if he contacts the police or authorities despite the duty of confidentiality?
Good morning and thank you for using ask.com!
I would like to provide you with the following information regarding your question.
As a basic principle, it is part of the professional duties of a tax advisor to maintain confidentiality (§ 57 StBerG). They are not allowed to report tax evasion independently, as it would involve the violation of secrets. This applies when tax evasion is recognized retrospectively. If the advisor realizes before submitting a declaration that the client is evading taxes or providing incorrect information, and still submits the declarations, they are guilty of aiding and abetting. In this case, the advisor themselves becomes liable to prosecution and is also responsible for any resulting damage. If the advisor recognizes the act of (intentional) tax evasion, they must inform the client and possibly resign from the mandate.
Providing advice for the purpose of tax evasion is not allowed and is punishable by law (aiding and abetting/accomplice) for the tax advisor. However, they are not allowed to disclose secrets voluntarily (§ 203 StGB) and would even be liable for damages if revealing private secrets causes harm to the taxpayer.
I hope this answers your question, if not, please feel free to reach out. The portal allows for follow-up questions.
Please note that an online forum does not allow for comprehensive advice, but only provides an initial tax assessment.
Best regards,
Knut Christiansen
Tax Advisor
