If someone has evaded taxes and would like to submit an amended tax return leading to immunity from punishment, they should have sufficient liquidity. The tax liability must be discharged within a short timescale.
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London - www.grprainer.com/en conclude: With a timely and complete amended tax return, tax evaders can wipe the slate clean and emerge unpunished. However, they should make sure that they have sufficient financial resources available in order to immediately settle the tax liability. Generally, tax authorities only set short timeframes for paying evaded taxes.
For this reason alone, it is important to get an idea of the extent to which taxes have actually been evaded. This can only be achieved if the necessary documents are collected and the extent of the evaded taxes can be determined from these. This is hardly possible for a layman, which is why he should turn to lawyers and tax advisors competent in the field of tax law. They can analyse the documents and calculate the tax liability. They can, of course, also be of assistance in drawing up the amended tax return, as this is also something that should not be prepared without expert advice or with the help of standard forms. The risk in that case of the information being incomplete or incorrect is very high. Each case is different and the pitfalls often lie in the details. An amended tax return can only lead to immunity if the information is complete and correct - and if the tax liability is settled immediately. Obviously, it must also be submitted before the tax evasion is discovered by the authorities.
While the hurdles for an amended tax return leading to immunity are already high, they will be even higher from 2015. The tax affairs from the past ten years rather than merely five years will then have to be disclosed. It may prove difficult to furnish the documents for this long period of time. Moreover, the penalties will also be considerably increased. Large amounts can then quickly accrue in conjunction with the evaded taxes.