Search
Contact
29.01.2021 | KPMG Law Insights

Criminal tax law – Tax evasion: extension of the statute of limitations for prosecution to 15 years

Tax evasion: extension of the statute of limitations for prosecution to 15 years

With the JStG 2020 passed by the Bundestag yesterday, the criminal statute of limitations for particularly serious tax evasion will be increased from 10 years to 15 years.

Background

As was the case with the extension of the statute of limitations for prosecution of particularly serious tax evasion from 5 to 10 years in 2008 in connection with the purchase of data carriers from Liechtenstein, the legislator again decided on a general extension of the statute of limitations on the occasion of the processing of specific cases of tax evasion in connection with Cum-Ex cases. The legislator justifies the extension of the statute of limitations with the difficulties of clarifying highly complex and often international cases of particularly serious evasion. In this respect, the current ten-year statute of limitations already deviates from general criminal law, which would provide for a statute of limitations of 5 years based on the level of punishment for tax evasion.

This is already the second tightening of the criminal statute of limitations this year. In the summer of 2020, the second Corona Tax Assistance Act already extended the absolute statute of limitations – i.e., independent of interruptions – for particularly serious tax evasion.

Which acts are concerned?

The fifteen-year statute of limitations applies to all named cases of particularly serious tax evasion (Section 370 (3) Nos. 1-6 AO). Practically, the most common case is the reduction of taxes “to a large extent”. According to the case law of the Federal Court of Justice, a large scale exists for any tax evasion exceeding EUR 50,000. Especially in the corporate sector, such amounts are quickly reached, e.g. in the case of (conditionally) intentional evasion of income tax, sales tax or wage tax.

The provision shall be applied retroactively to all acts not yet barred by the statute of limitations at the time of its enactment. Following negotiations in the Bundesrat, the law is expected to be promulgated before the end of December.

Impact on law enforcement

The extension of the statute of limitations initially means that cases of particularly serious tax evasion do not become time-barred until 15 years have elapsed since the act was completed. The absolute statute of limitations, i.e. the period when a crime becomes time-barred at the latest, irrespective of any interruptions, e.g. due to investigative measures, is even 37.5 years.

Effects on voluntary disclosure

The new statute of limitations must also be taken into account when dealing with past tax misconduct by means of a self-disclosure that exempts the taxpayer from prosecution. An effective voluntary disclosure requires information on all tax offenses of a tax type that are not subject to the statute of limitations, but at least on all tax offenses of a tax type within the last ten calendar years. This means that cases of particularly serious evasion must be disclosed on the basis of a fifteen-year statute of limitations, instead of the previous ten years. The effectiveness of voluntary disclosures already made is not likely to be affected by the amendment. In this respect, taxpayers may legitimately rely on the fact that legal peace has been established by a voluntary disclosure made in accordance with the law.

Effects on the limitation period for tax assessment

The extension of the statute of limitations for prosecution may also affect the statute of limitations for tax assessment. In the case of tax evasion, the tax assessment period does not expire until the prosecution of the tax offense has become time-barred (so-called suspension of expiration, Section 171 (7) AO). In the case of particularly serious tax evasion, the statute of limitations for tax assessment does not expire until 15 years after the act has been committed.

Explore #more

08.10.2025 | Deal Notifications

KPMG advised Adiuva Capital GmbH with Fact Books on the sale of KONZMANN Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Adiuva Capital GmbH, a Hamburg-based private equity firm (“Adiuva“), in connection with the…

06.10.2025 | KPMG Law Insights

What the Green Claims Directive means for companies – an overview

With the Green Claims Directive, the EU will introduce extensive regulations on the requirements for permissible environmental claims. The aim is to prevent greenwashing so…

03.10.2025 | Deal Notifications

KPMG Law and KPMG support the restructuring of Groupe CAT in Germany

KPMG Law Rechtsanwaltsgesellschaft (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Groupe CAT on comprehensive restructuring measures with a cross-service team. Over a period of…

02.10.2025 | Deal Notifications

KPMG Law advises Epitype GmbH and MDG Molecular Diagnostics Group GmbH on the acquisition of significant assets of oncgnostics GmbH

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) provided comprehensive legal advice to Epitype GmbH, a company of the Dresden-based MDG Group, on the formation and subsequent…

02.10.2025 | In the media

KPMG Law Statement in ZEIT for entrepreneurs: We’ll take the 500 billion!

German construction companies are asking themselves: how quickly will the money come from the government? And they are worried that only the giants will benefit.…

01.10.2025 | KPMG Law Insights

Federal Network Agency reforms special network charges for industry and commerce

The Federal Network Agency is planning a fundamental reform of the special network charges for energy-intensive companies. Any change to the current privilege regime entails…

30.09.2025 | In the media

KPMG Law dominates the top 100 list of the new law firm monitor with eight lawyers

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) occupies an outstanding sixth place in the overall evaluation of the TOP 100 law firms in the current diruj…

29.09.2025 | KPMG Law Insights

MiSpeL draft: New funding for energy storage systems and charging points

On September 18, 2025, the Federal Network Agency published a draft for the “Market integration of storage systems and charging points” (MiSpeL for short). For…

29.09.2025 | KPMG Law Insights

Organizing the transformation and spin-off of corporate real estate with legal certainty

When real estate portfolios are to be transformed or spun off, the economic success depends heavily on the legal preparation. Complex legal issues often arise,…

25.09.2025 | KPMG Law Insights

MaGo update – roadmap for implementing the new requirements

On 14 July 2025, BaFin revised the circular “Minimum requirements for the business organization of insurance companies under Solvency II” (MaGo for SII-VU) and published…

Contact

Dr. Heiko Hoffmann

Partner
Munich Site Manager
Head of Criminal Tax Law

Friedenstraße 10
81671 München

Tel.: +49 89 59976061652
HHoffmann@kpmg-law.com

Arndt Rodatz

Partner
Head of Criminal Tax Law

Fuhlentwiete 5
20355 Hamburg

Tel.: +49 40 360994 5081
arodatz@kpmg-law.com

Philipp Schiml

Partner

Tersteegenstraße 19-23
40474 Düsseldorf

Tel.: +49 211 4155597150
pschiml@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll