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July 2026, Finance Minister Lars Klingbeil and Justice Minister Dr Stefanie Hubig announced, during a press conference to present the action plan on financial and tax crime, that they would abolish voluntary disclosure with immunity from prosecution in its current form.<\/p>\n\n\n\n
What does this mean?<\/strong> All in all, this applies to the \u201csmall fry\u201d.<\/p>\n\n\n\n However, there is also Section 398a of the German Fiscal Code (AO), which allows for the refraining from prosecution for larger sums if, in addition to the tax and interest, a percentage-based amount of 10-20 % is paid for large sums of tax evasion. This form of extended voluntary disclosure has come under political scrutiny.<\/p>\n\n\n\n But what has actually become of this in the political arena, and what advice do we give our clients? Of course, as long as no new regulations have yet been introduced to abolish it, it is conceivable to make extensive use of voluntary disclosure. I have already seen this recommendation put forward by some of my colleagues. However, no ministerial draft legislation regarding the implementation of the action plan and the abolition of voluntary disclosure have yet been made public. It is therefore genuinely impossible to predict whether this change will come into force shortly and, if so, in what form.<\/p>\n\n\n\n Naturally, I do not wish to discourage anyone from submitting a voluntary disclosure, and we will also provide you with prompt and active support. But there is no need to rush into anything.<\/p>\n\n\n\n
Section 371 of the German Fiscal Code (Abgabenordnung \u2013 AO) provides for voluntary disclosure in cases of tax evasion. It provides for exemption from prosecution, particularly in the following cases:<\/p>\n\n\n\n\n