Changes to the FinStrG – avoiding financial criminal law consequences

The Fraud Prevention Act 2024 has significantly amended the provision of section 30a FinStrG, which stipulates a reason for the annulment of a penalty.

Previously, tax authorities were already able to impose a tax increase of 10% (“Verkürzungszuschlag”) if they identified an additional claim during a tax audit and suspected a financial offense, provided certain conditions were met. By paying the tax arrears and tax increase on time, it was possible to avert prosecution under financial criminal law (reason for annulment section 30a para. 1 FinStrG).

The determination of the reduction surcharge is at the discretion of the authority and requires that

• there is a suspicion of a financial offense – not listed in section 30a para. 5 FinStrG – concerning the inaccuracies justifying the additional claim,
• the total amount does not exceed EUR 33,000,
• the reduction surcharge is applied for no later than 14 days after the additional tax claim is imposed, and
• there is a waiver of any appeal against the imposition of the tax increase

The reason for annulment of the penalty becomes effective if payment of the tax arrears and tax increase is made within one month.

The Fraud Prevention Act 2024 has now introduced important innovations:

• Abolition of the previous EUR 10,000 limit: The previous strict annual limit of EUR 10,000 has been abolished. The removal of the annual limit of EUR 10,000 increases flexibility in the application of the reduction surcharge and is therefore to be welcomed.
• Payment facilitations: It is now possible to allow the imposition of a tax increase even when granting payment facilitation of up to six months for the affected tax claim. This is intended to facilitate the application of the provision.

The exemption from punishment under section 30a para. 1 FinStrG can be used to avoid consequences under financial criminal law that might otherwise arise, such as a conviction for a financial offense. Therefore, it is advisable to take advantage of the reduction surcharge and ensure immunity from prosecution!

Laura Viechtbauer will be happy to help you apply for a reduction surcharge and guide you through the entire process to help you avoid unnecessary financial criminal law risks!

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.

 

16. September 2024

 

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