Germany: Ministry of Finance Issues New Draft Bill

Currently, the statute of limitation for minor tax offences is 5 years with a corresponding 5 year period for voluntary disclosures. On August 27, the Ministry of Finance issued a draft bill proposing to double the statute of limitations to 10 years, and in turn, also impose a voluntary disclosure period of 10 years.

In addition to this, the Ministry of Finance is proposing to increase the penalties for tax evasion – 10% for amounts exceeding €25k (currently  €50,000), 15% where the amount exceeds €100,000, and 20% where the amount exceeds €1 million.

The amendments, if approved, shall become effective from January 1, 2015.