Carbon Tax Fraud: Germany Hopes to Recover Millions of Euro

March 31, 2011 Taxation in Germany

Carbon Tax Fraud: Germany Hopes to Recover Millions of EuroGermany is looking to recover millions of euros in previously evaded taxes, as charges are filed against directors of companies accused of carrying out carbon credit tax fraud.

Germany’s investigations into carbon dioxide tax credit fraud are coming to fruition, with prosecutors filing charges against six individuals accused of being responsible for over EUR 230 million in evaded taxes. The legal actions were announced in a statement on March 30th by Guenter Wittig, prosecutor for the Office of the Attorney General of Germany.

According to Guenter Wittig, the six alleged tax evaders were directors of companies who are accused filing incorrect tax information and intentionally making false statements to German tax authorities between September 2009 and April 2010. The filing frauds are suspected of being used to hide “carousel” tax evasion schemes. The names of the accused, or their companies, have not yet been revealed, but Guenter Wittig did say that they were not all German citizens, with some residing in France and the UK.

The charges are the first to be laid following an extensive international investigation into carbon tax credit fraud conducted by German tax authorities. Evidence is still being analyzed regarding 170 more suspects who are thought to be responsible for UER 630 million in additional evaded taxes. Guenter Wittig explained that all of the suspects, are alleged to have imported carbon credits from one EU country, without being liable for VAT payments, and selling the credits locally, while adding VAT but not passing it on to tax authorities.

Photo by Pepeketua