Support in Criminal Proceedings for Tax Evasion

A criminal proceeding for tax evasion is a situation where a tax audit, tax assessment or business transaction moves into the area of criminal defence. For a business, this creates risks not only of financial losses but also of interrogations, searches, seizure of property, access to documents, reputational pressure and personal liability of the director, accountant, owner or individual entrepreneur.

VINCO’S supports clients in criminal proceedings related to alleged tax evasion: we analyse tax audit materials, build a defence strategy, assist during investigative actions, prepare procedural documents and represent the client during pre-trial investigation and in court.

Criminal liability for tax evasion is usually based on an allegation that taxes, duties or other mandatory payments were intentionally not paid to the budget in a significant, large or especially large amount.

It is important to understand that a tax assessment or a tax audit report does not automatically mean that a criminal offence exists. Intent, actual non-receipt of funds by the budget, the type of tax, the amount, the role of a specific person and the admissibility of evidence are all important.

In such cases, the defence strategy must combine criminal procedure, tax law, accounting, corporate and commercial analysis. This is why criminal tax defence requires both a criminal defence lawyer and a tax lawyer who understands the financial documents of the business.

• a company director summoned for questioning in relation to tax transactions;
• a chief accountant or financial director whose accounting, reporting or tax credit is being examined;
• a business owner whom investigators associate with management decisions;
• an individual entrepreneur accused of tax or social contribution evasion;
• a company facing searches, seizure of documents, temporary access or freezing of accounts;
• a business that already has a tax audit report, tax notice-decision or parallel administrative/court tax dispute;
• a company whose counterparties or transactions are treated by the tax authority or investigators as risky;
• officers who may receive or have already received a notice of suspicion.

• opening of a criminal proceeding after a tax audit;
• questioning of the director, accountant, employees or counterparties;
• searches at the office, warehouse, home of company officers or accounting department;
• temporary access to documents, email, servers, bank documents or primary accounting documents;
• seizure of bank accounts, assets, goods or documents;
• criminal cases concerning VAT credit, allegedly fictitious transactions, expenses, cash, individual entrepreneur models or employee payments;
• cases involving VAT, corporate profit tax, single tax, excise tax or social contributions;
• preparation of a position before or after a notice of suspicion;
• challenging unlawful investigative actions, seizures and omissions of investigators.

• grounds for entering information into the Unified Register of Pre-Trial Investigations and the factual narrative of the case;
• whether the proceeding is connected to a tax audit report or tax notice-decision;
• which taxes, periods, amounts and transactions are considered problematic;
• whether there are signs of intent in the actions of a specific person;
• whether the alleged amount of unpaid tax is supported by proper documents;
• whether the tax audit results are being challenged administratively or in court;
• which documents have already been seized or may be requested by investigators;
• which company officers, employees or counterparties may be questioned;
• whether there is a risk of freezing accounts or seizing assets;
• which defence strategy is appropriate: active rebuttal, tax appeal, negotiation, compensation of damage or combined defence.

1. Initial consultation and analysis of the client’s situation.
2. Review of available documents: tax audit report, tax notice-decisions, court orders, requests, summonses, search/interrogation protocols, procedural decisions and tax dispute materials.
3. Determination of the client’s procedural status: witness, company representative, person under investigation, suspect or accused.
4. Development of a defence strategy considering tax, criminal, accounting and reputational risks.
5. Preparation of the client for questioning, explanations, searches, temporary access or other investigative actions.
6. Lawyer’s participation in investigative actions, protection of client rights and recording of violations.
7. Preparation of motions, complaints, objections, applications for return of property, cancellation of seizure or recognition of investigative actions as unlawful.
8. Support of a parallel administrative or court tax dispute if its outcome affects the criminal proceeding.
9. Defence after a notice of suspicion, including the position on preventive measures, asset seizure and further proceedings.
10. Representation in court and support with implementation of procedural decisions.

Criminal tax proceedings often begin with questioning of the director, accountant, employees, counterparties or persons formally connected with the business operations. Unprepared explanations may later be used against the company or a specific officer.

Searches and temporary access to documents also require legal support. The lawyer checks the court order, the scope of allowed actions, the list of documents and property, records violations and controls the seizure of devices, servers, primary documents and electronic media.

In many cases, a criminal proceeding is linked to a tax audit report or tax notice-decisions. Therefore, criminal defence should not be separated from the tax dispute.

If the tax notice-decision is being challenged and the tax liability is disputed, this may be important for the criminal defence strategy. At the same time, criminal proceedings should not be used as pressure on business to pay disputed amounts without proper legal analysis.

• tax audit report, tax notice-decisions, objections and appeal decisions;
• court orders, investigator or prosecutor decisions, summonses, search/interrogation/seizure protocols;
• primary documents for disputed transactions: agreements, acts, invoices, payment documents, transport and warehouse documents;
• tax and financial reporting for disputed periods;
• bank statements, accounting data and turnover balance sheets;
• information on counterparties and actual performance of business operations;
• documents on employees, individual entrepreneur contractors, payments, cash operations or cash registers if relevant;
• correspondence with the tax authority, investigators, banks or counterparties;
• information on previous tax disputes, court cases or enforcement proceedings.

A criminal tax proceeding should not be treated as an ordinary tax audit. Mistakes at the initial stage may affect the entire defence.

• careless explanations during questioning;
• signing investigative protocols without comments;
• seizure of documents, devices or servers without recording violations;
• freezing of accounts or assets without timely challenge;
• loss of the opportunity to prove the reality of business transactions;
• incorrect coordination of tax and criminal defence;
• risk of notice of suspicion without a prepared defence position;
• reputational and operational losses for the business.

VINCO’S Legal Company provides comprehensive support in criminal tax evasion proceedings: from initial analysis to participation in investigative actions, preparation of procedural documents, challenging decisions and representation in court.

We help businesses build a defence not only from the perspective of criminal procedure, but also with regard to tax assessments, accounting documents, reality of business transactions, the role of specific officers and possible ways to reduce risks.

VINCO’S protects directors, accountants, owners, individual entrepreneurs and companies in criminal tax proceedings, helping them keep control over the situation, documents, assets and the legal position of the business.