Tax Offences and Fake Invoice Allegations
Tax offences such as issuing and using fake or misleading invoices often turn into criminal investigations against company executives following a tax audit. We conduct the defence against tax offence allegations at the investigation and prosecution stages, coordinating the process with your financial adviser and with the administrative side of the tax dispute.
What are tax offences?
The Tax Procedure Law treats acts such as concealing books and documents, creating false records, issuing or using fake documents and issuing or using documents that are misleading as to their content as tax evasion offences, punishable by imprisonment.
A fake document is one issued as though a transaction or situation existed when it did not. A document misleading as to its content is one that reflects a real transaction or situation inaccurately in nature or amount. The difference determines both the severity of the penalty and the direction of the defence.
Who is liable for a tax offence?
Because criminal penalties cannot be imposed on legal entities, liability for tax offences committed on a company’s behalf lies with the individuals who committed the act, often the legal representatives and those actually in charge of management. The person’s duties in the relevant period, their role in issuing or using the documents and their knowledge are decisive in determining liability.
Scope
- Defence against tax offence allegations at the investigation and prosecution stages
- Assessing tax audit reports from a criminal law perspective
- Coordination with the administrative and judicial stages of the tax dispute
- Designing supplier checks against the risk of fake documents
How We Work
- Reviewing the tax audit report, the documents in question and the period concerned
- Gathering evidence showing the transactions behind the documents were real, such as delivery, payment and receipt records
- Preparing the defence together with the financial adviser and tax specialists
- Conducting the statement, investigation and prosecution stages
- Ensuring consistency with the administrative proceedings against the tax assessment
Team
Frequently Asked Questions
It turned out our supplier issued fake invoices. Are we liable too?
The liability of the executives of the company that used the document depends on whether they knew it was fake. Delivery notes, bank payments and receipt records showing that the goods or services were actually received are the basis of the defence. Checking suppliers in advance reduces this risk considerably.
Is the tax audit report enough for a criminal case?
The tax audit report is the starting point of the investigation, but it is not conclusive evidence for the criminal court. The court separately assesses whether the documents in question are fake or misleading and the defendant's intent; the report's findings can be challenged in the defence through an expert examination.
Does paying the tax debt end the criminal case?
For fake or misleading document offences, paying the tax debt does not, as a rule, end the criminal case. Effective repentance provisions exist for certain offences and conditions; whether they can be relied on must be assessed on the specific facts.
Can an executive who has left the company also be held liable?
Yes. Liability is determined by the duties and role held when the act was committed. Having left the post does not remove liability for documents issued or used during that period.
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