Criminal Tax Law

• Special counsel in criminal tax matters e.g. drafting of expert reports on culpability
• Drafting of voluntary self-disclosures
• Assistance in field audits/audits by the tax investigation unit
• Search of premises - emergency assistance
• Advice for heirs on tax offences committed by the testator (e.g. undisclosed investment portfolios in a foreign country)
• Negotiating factual agreements - negotiating plea deals with the prosecutor
• Country-wide defence in criminal tax matters before the courts
• Emergency assistance in pre-trial detention
• Stay of enforcement of an arrest warrant - release on bail
• Judicial review of pre-trial detention - (so-called bail hearings)

LHP Tax-Lawyers offer comprehensive advice in all stages of criminal proceedings. You will always have a competent partner at your side, who will answer your questions and keep you informed about current developments in your matter.

We know, that being accused in criminal proceedings causes great stress and we therefore act discreetly and sensibly in these matters. This is particularly important following an emotionally charged search of premises by the tax investigator. What follows is a period of apparent uncomfortable silence, during which the tax inspector assesses the seized documentation. We are familiar with these situations and assist you as tax law specialists and tax advisers.  

• It often helps to be made aware of the fact, that the "ticking of the clock" in criminal tax proceedings is usually to the benefit of the client. The often strong emotional attachment of a tax inspector with “his” case following a search of premises subsides gradually. At the same time, the pressure to finalise a case increases. This means, that the Tax Authority’s motivation to settle a case increases.
• We will certainly explain the foreseeable course of the proceedings to you. It is important to prevent your imagination running wild during this period of apparent calm and uncertainty and we will discuss the worst-case scenario with you and explain the options available for a voluntary self-disclosure.

The work of the defence lawyer starts immediately - which is different to other criminal matters. The tax inspector should be made aware, that his actions are under observation right from the beginning. A competent defence lawyer should be instructed as early as possible in criminal tax proceedings in order to develop a defence strategy (see: voluntary self-disclosure). In many cases, the foundation for later grounds to mitigate the penalty is laid in the early stages of a case.

In an emergency, such as a search of premises by the tax inspector, you may contact us outside of business hours by dialling our

Telephone number for emergencies: +49 - (0)170 - 9685513.

Our offices can be reached by telephone from Monday to Friday between 9 a.m. and 6 p.m. When we are not available to take your call, the emergency service of the Cologne Association of Legal Professionals can be reached 24/7 at +49 / 221 / 42 63 82 .

We are often consulted by colleagues in the profession (lawyers and tax advisers) and render assistance and support, especially in the area of criminal tax law and voluntary self-disclosures (we remain "in the background" if requested). A defence team is formed this way, which can provide the best possible legal protection for the client.

A search of premises by the tax inspector and the commencement of criminal tax proceedings, as well as the decision in favour of a voluntary self-disclosure are extremely stressful situations for the affected taxpayer. We take this into account by conducting these matters discreetly and sensibly. It is important to instruct a competent defence lawyer early, in order to develop an effective defence strategy. We aim at facilitating this step for you and our professional fees are therefore transparent. A separate page explains the costs entailed by voluntary self-disclosures.

• Initial consultation
  The initial consultation provides an opportunity to discuss your matter with our tax-lawyers and receive answers for your most urgent questions. We will explain the possible course of the proceedings and discuss the possible worst-case outcome. We try to keep your imagination at bay during this period. The cost of an initial consultation is €190 plus VAT, unless a different agreement is made. We are certainly available to conduct the initial consultation via telephone conference.
• Hourly fee
  We usually agree on fixed hourly fees with clients instructing us in matters of criminal tax law, e.g. for the submission of a voluntary self-disclosure. We charge in segments of 15 minutes. Fee notes are sent monthly or quarterly, which assists in clarity and transparency of the work invoiced.
• Flat fee for inspection of case files 
  The extent of a criminal matter and the required advice are frequently hard to estimate reasonably during an initial consultation. Conclusions about the extent of a matter can usually only be drawn after an inspection of the case files and documentation provided to us by our client. For the purpose of agreeing on a rough fee-estimate in such cases, we offer a flat fee for the inspection of the case files and will then, based on the insights gained, enter into a separate fee agreement for further advice and defence. This enables us to come to reasonable and transparent fee arrangements with our clients.
• Flat-fee arrangement 
  We also offer our clients flat-fee arrangements covering individual stages of the criminal proceedings The costs of a matter are determined at the outset, which is often beneficial for the client.

In criminal tax matters, the successful defence of an accused ocked up in pre-trial detention is a very challenging situation for the lawyer/defence lawyer. It is, for many reasons, one of the most difficult tasks to be mastered by a defence lawyer:

• The defence lawyer must first ask himself, whether he has the capacity to accept the case. Due to the associated restrictions, even contacting the client in pre-trial detention is difficult and often time-consuming. It may be better to instruct and dispatch an experienced local lawyer, who can communicate with the client and will take care of the detention conditions (e.g. obtain a TV, advise on options to ease the effects of detention). Further, applications for bail hearings and complaints must be prepared - sometimes at short notice - which, in particular in criminal tax proceedings, require a time-consuming inspection of extensive case files. Own investigations - in coordination with the prosecution authorities (tax investigator, public prosecutor’s office) - in respect of the grounds for detention are sometimes required. It is important, that the defence lawyer acts immediately, because important decisions are made at this early stage of criminal proceedings. Last but not least, he has to find the time to familiarise himself with the matter and the law, and represent the client in the arraignment and further bail hearings.
• The defence lawyer must also consider the difficult psychological situation of a client locked up in pre-trial detention, who has abruptly been removed from his usual life, his family and his work, and is now subject to stringent detention rules. The shock caused by being detained, the uncertainty about what comes next, the inability to contribute to one’s own defence and the impending existential threat wear down even hard-boiled persons. Cases have been heard of, where investigative authorities have purportedly tried to use physical and psychological stress to undermine the accused’s right to remain silent and thereby coerce a confession (key word: arrest warrant makes the mute talk). The defence lawyer must be experienced and very resilient.  He is eye-to-eye with the situation of his client and must have strong stamina. He must approach the situation with psychological sensibility and diplomatic skill, must not lose his client’s trust, must prevent his client from making rash decisions and, above all, must succeed in the client accepting the defence lawyer´s leadership, despite adverse circumstances. On the other hand, the defence lawyer must endure his own frustrations stemming from stereotypical, insufficiently substantiated, boilerplate arrest warrants and judicial decisions.
• From a legal perspective, the defence lawyer must consider the conditions applicable to arrest warrants and the continuation of detention, and elicit the options for a targeted and tactically sensible use of legal remedies against pre-trial detention.