Germany outlines tax evasion penalties and self‑disclosure process

German tax law specifies that a tax assessment can trigger a criminal investigation when the authorities deem there is intent to evade taxes. Under §370 of the Fiscal Code (AO), tax evasion is a punishable offence, with penalties ranging from six months to ten years of imprisonment for especially severe cases. The procedural framework allows tax authorities to act with police powers, including searches and asset seizures, and defense strategies often focus on calculation errors and the distinction between fraud and tax evasion.

Legal experts also note that a voluntary self‑disclosure (Selbstanzeige) can prevent criminal sanctions if it is complete, timely and truthful. Hamburg attorney Caspar J. Freter advises that while the self‑disclosure route offers a way out for many taxpayers, the process is complex and must be handled carefully to avoid triggering prosecution.