Austria: rules for voluntary disclosure in criminal tax matters are expected to be tightened
Austrian tax law enables taxpayers to avoid criminal tax sanctions or penalties in case of fiscal offences by submitting a voluntary disclosure. The taxpayer’s exemption from any criminal tax sanctions on account of having submitted a voluntary disclosure is subject to specific preconditions. A draft tax bill on the Amendment of the Austrian Fiscal Criminal Tax Act 2014 (Finanzstrafgesetznovelle 2014) that is currently pending for vote in the Austrian Parliament is set to tighten these requirements significantly. The new rules are expected to enter into force as of 1 October 2014.
Currently, a taxpayer may submit a voluntary disclosure a second time for the identical tax claim without losing the effect of being relieved from potential criminal tax sanctions. Such repeated (second) disclosure is currently (only) subject to the taxpayer paying a punitive penalty amounting to 25 per cent of the amount of additional tax disclosed to the tax authorities. Pursuant to the currently pending bill, a repeated voluntary disclosure for the identical tax claim will no longer relieve the taxpayer from potential criminal tax matters. As a result, any incomplete first disclosure can no longer be rehabilitated with an amnesty effect from a criminal tax law perspective. However, the amnesty effect of the first disclosure for that part of taxes disclosed therein (if correctly submitted) will not be affected by an additional disclosure for the identical tax claim.
From a practical perspective, taxpayers are advised to submit comprehensive and full disclosures with respect to tax matters in order to avoid jeopardising the disclosure’s amnesty effect…
Click on the link below to read the rest of the Schoenherr briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Schoenherr
Briefings from Schoenherr
Risk mitigation measures required in bank crisis law.
Ministry proposal underplays advantages of agency staff.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work