Anyone who has made a mistake with the tax office can, under certain conditions, voluntarily report themselves to the authorities in Germany and thereby avoid prosecution. This mechanism is currently under political scrutiny. As part of an action plan to combat tax and financial crime, there are discussions about abolishing voluntary disclosure with immunity from prosecution in its current form. The Federal Chamber of Tax Advisers (BStBK) has now spoken out clearly against this proposal in a statement dated 2 October 2026.
What is a voluntary disclosure that leads to immunity from prosecution?
Voluntary disclosure, which exempts the taxpayer from criminal liability, is governed by the German Fiscal Code. It enables taxpayers to correct incorrect or incomplete tax returns on their own initiative, to pay the outstanding tax and, in doing so, to avoid criminal prosecution. It is crucial that the disclosure is made in full and voluntarily, before the authorities take action of their own accord.
What is the BStBK criticising?
The BStBK emphasises that both businesses and private individuals operate in an increasingly complex tax environment. Particularly for small and medium-sized enterprises, it is virtually impossible to rule out every error or misjudgement from the outset, despite careful internal procedures and effective tax compliance. Tax law issues are sometimes only recognised retrospectively or change as a result of new case law.
In the Chamber’s view, the existing regulations strike an important balance: anyone who realises they have made a mistake and discloses it of their own accord should not immediately face criminal proceedings. This promotes tax compliance and encourages voluntary disclosure, rather than concealing mistakes.
What does this mean for clients?
For private individuals and businesses, voluntary disclosure – which leads to immunity from prosecution – is a significant tool under criminal tax law. It offers the opportunity to resolve a difficult situation on one’s own initiative. Should this mechanism be abolished or significantly restricted, even errors made in good faith could result in considerably more serious legal consequences than has previously been the case.
- The voluntary disclosure must be complete and cover all incorrect information.
- It must be submitted before an external audit or search begins.
- The evaded tax, including interest, must be paid retrospectively.
- In the case of larger sums of tax evaded, a penalty surcharge is also payable.
The political process is not yet complete. Whether the abolition will go ahead, and if so in what form, remains to be seen. For anyone who is unsure whether their tax returns need correcting, it is worth seeking tax advice at an early stage. This is because the option to make a voluntary disclosure to avoid penalties is only available for as long as it is provided for by law.
Source: Haufe: Tax
This post and the accompanying image were created with the help of AI and have been editorially reviewed.
