Nearly 5 years after the 2017 tax reform amending provisions of
the General Tax Law of 22 May 1931 (Abgabenordnung,
"AO") with a view to reinforcing the
coercive power of the tax authorities, an administrative circular
LG - A n ° 67 was released on 28 July 2021
("Circular") providing guidance to the
tax offices on the application of these provisions.
Breaches subject to administrative fines
The following breaches are subject to administrative fines:
- Intentional defaults or inaccuracies committed by the taxpayer
in its tax return or wilful failure to file the tax return are
subject to a fine ranged from 5% to 25% of the evaded taxes
(§166 (3) AO).
- Simple tax fraud (an undue tax advantage fraudulently obtained
for the taxpayer or someone else's benefit or intentional
reduction of tax revenues) is subject to a fine ranged from 10% to
50% of the evaded taxes or undue reimbursement (§396 (1)
AO).
