1. Lawyers and Taxes
As a rule, a lawyer works as a freelancer and submits his tax returns as part of a surplus income statement. Operating expenses, such as travel expenses to court hearings or specialist literature, can be deducted as business expenses.
The accused attorney had a private Finca on Mallorca. He set the costs arising for it in the context of his tax return as operational expenditures. In addition, a Porsche that the wife used privately was declared as the lawyer’s vehicle used for business purposes.
The piquant thing about this case is that the tax auditors had already noticed a few years earlier how “generously” the lawyer obviously declared private expenses as operating expenses. Despite the previous warning, he continued his conduct. At this point, at the latest, it is likely that the lawyer had intention with regard to a possible tax evasion.
The public prosecutor’s office had initially offered to conclude the proceedings with a penalty order. The person concerned appealed against this. Among other things, it is disputed in the proceedings whether the lawyer was incorrectly advised by a tax consultant. In addition it concerns the question whether a punishment-exempt fiscal self-denunciation would have been possible.