Lawyer for bogus invoices

Tax evasion through the use of fictitious invoices: Avoid high penalties with the help of a specialist criminal lawyer

Are you suspected of issuing or using bogus invoices? Tax authorities often become aware of irregularities during tax audits or VAT audits. Tax authorities carefully examine tax documents and invoices, and any conspicuous irregularities may lead to the initiation of criminal tax proceedings.

According to the German Tax Code (AO), tax evasion through fictitious invoices can result in heavy fines or even imprisonment. In addition to other sentencing criteria, the severity of the penalty in this area depends primarily on the extent of the tax loss caused and the individual culpability of the accused, for example, based on the nature and intensity of their involvement in the invoice issuance.

If you have received a summons from the Tax Office for Audit Services and Criminal Matters, or if a search warrant or arrest warrant has already been executed against you, you should seek legal assistance immediately. Our attorneys specializing in criminal tax law will examine whether the accusation is justified and how to proceed against it. The sooner you contact us, the better your rights can be protected, the possible dismissal of the case, or, in the event of a conviction, possible reduced sentence. We are at your side to help you avoid fines or minimize the consequences of criminal proceedings and the penalty.

When does an invoice become a fictitious invoice?

According to the relevant tax definition in Section 14 of the German Value Added Tax Act (UStG), an invoice is a document used to bill for a service (e.g., a service or delivery). An invoice becomes a fictitious invoice if its origin or content does not correspond to the facts.

This is the case if:

• Fake invoices are used to conceal or fake business transactions or the provision of services.
• One risk for invoice recipients is that bogus invoices are becoming increasingly difficult to detect, as they can now be paid both in cash and by bank transfer.
• A false or manipulative invoice can trigger suspicion of tax evasion or billing fraud. 
• Anyone who issues or uses fake invoices risks being noticed during a tax audit and facing high fines or imprisonment for short-term profit.

Are you accused of issuing bogus invoices? Or of using bogus invoices to evade taxes? Consult a tax criminal defense attorney as soon as possible! This way, you can optimally build your criminal defense against the accusation of tax evasion.

Investigation into the issuing and use of bogus invoices: When will an investigation be carried out and what are the risks?

Tax authorities and customs authorities routinely check submitted invoices for irregularities at certain points. This is usually followed by financial investigations, i.e., BaFin requests and reconciles account transactions. Typical anomalies on invoices, combined with irregularities in accounts, can give rise to initial suspicion and lead to investigations for tax evasion (Section 370 of the German Fiscal Code) or forgery (Section 267 of the German Criminal Code).

• Typical indications of bogus invoices
• Noticeably smooth or high amounts
• Imprecise description of services (“as agreed”, “flat rate”)
• Missing place of performance or material consumption
• No related business correspondence (offers, inquiries, retentions)
• No evidence of the service provided (photos, documentation)
• Signs of forgery by the invoice issuer or payee
• What are the consequences?
• An investigation can have drastic consequences:
• Search of residential and business premises
• Seizure of assets, including asset seizures; in the event of a conviction, confiscation of assets
• Arrest warrants
• Severe fines or prison sentences

Consult a tax criminal lawyer early on to avoid unnecessary risks and protect your rights.

What is tax evasion? Definition and elements

Tax evasion according to Section 370 of the German Tax Code (AO) occurs when intentionally false or incomplete information is provided to the tax authorities in order to “save” taxes or to obtain unlawful tax advantages.

• When does tax evasion occur?

Tax evasion can be committed through active action or omission and is punishable even at the attempted stage. The following acts are punishable:

• False or incomplete information provided to the tax office
• Concealment of tax-relevant facts
• Non-use of tax marks or tax stamps
• And thereby the unlawful acquisition of tax advantages for oneself or third parties
• In tax evasion proceedings, the subjective aspect of the offense is often crucial. In criminal proceedings, intent, i.e., the deliberate deception of the tax authorities, must generally be proven. However, even reckless tax evasion can result in a fine under Section 378 of the German Fiscal Code (AO).
• Tax evasion through fake invoices?
• Anyone who posts invoices that are not based on real transactions risks criminal proceedings for tax evasion. 
• A common defense approach is to prove to the investigating authorities or the court that the accused or defendant knew nothing about the false invoice.
• However, experience has shown that this proof is difficult to provide.
• The review of the tax loss and recalculation is another defense approach in the context of a criminal defense.
• Evidence of proper management and security measures (compliance) can also be helpful.

Contact our tax criminal law firm for an initial consultation – we will help you protect your rights and build an optimal defense.

What penalties are there for tax evasion?

Tax evasion under Section 370 of the German Fiscal Code (AO) can be punished with a fine or imprisonment. The severity of the penalty depends on the severity of the individual's guilt and—in addition to the usual sentencing considerations—on the amount of the evaded tax.

• Overview of the legal penalties and consequences
• Up to 5 years imprisonment or a fine for simple tax evasion.
• Up to 10 years imprisonment in serious cases (from 50,000 euros of evaded taxes).
• Back payment of the evaded taxes, plus interest and late payment penalties.
• Prohibition of practicing a profession, withdrawal of licenses and trade permits in serious cases.
• Even without a conviction, the accusation of tax evasion can have far-reaching consequences:
• Loss of reputation and negative media coverage.
• Loss of creditworthiness and loss of trust among business partners.
• Risk of insolvency due to financial and business losses.

How should you behave as an accused person? Important immediate measures

If you're accused of tax evasion by using bogus invoices—whether after learning of it through a written subpoena, a search warrant, or even an arrest—it's crucial to act prudently. Follow these rules to best protect yourself:

• Refusing to testify – your silence protects you
• Do not make any statements to the investigating authorities.
• You often don't learn in detail what evidence supports the charges against you and whether it is valid. Typically, you only receive a summary of the charges and a brief list of evidence.
• Any statement can be used against you. Remaining silent is your right and should not be considered an admission of guilt.
• Immediately consult a tax criminal lawyer
• An experienced tax criminal lawyer knows the best defense strategy and how to deal with authorities and – if it comes to that – the court.
• The sooner you receive legal support, the better your chances of ending the proceedings in the best possible way – whether through a dismissal during the preliminary investigation or only after a court hearing.
• Your lawyer can request access to the files and examine whether the allegations are valid.
• With well-thought-out pleadings, depending on the evidence, a dismissal of the case can be achieved during the preliminary investigation; otherwise, we can represent you competently in court with our years of experience in criminal tax proceedings.

Failure to react quickly or reacting rashly can worsen your situation. Contact an attorney immediately to strategically plan your defense and minimize potential penalties and other consequences of criminal proceedings. Get advice now – we can help you protect your rights!

Your lawyer for tax criminal law: Defense against allegations in the context of bogus invoices 

Accusations of tax evasion through bogus invoices can have serious legal, financial, and even personal and professional consequences. Tax investigators and tax authorities closely examine invoices, account transactions, and suspicious business models – even minor errors can lead to an investigation. However, not every disputed invoice is automatically a bogus invoice, and not every discrepancy constitutes tax evasion that is punishable or subject to fines.

Our service for you:

• Immediate access to files apply: Only with comprehensive information can an effective defense be built.
• Communication with the investigative authorities to protect your rights and avoid making hasty statements.
• Application for discontinuation of proceedings if there is insufficient evidence and the accusation can be refuted at the stage of the investigation or preliminary proceedings – in particular without a public main hearing.
• Avoidance from Reputational damage and other professional and personal damages

Effective and Experienced Defenseif a court hearing is unavoidable.

If you're accused of tax evasion or fraud involving bogus invoices, waste no time. Early legal advice can determine the outcome of the case.

Frequently Asked Questions (FAQ)