Tax Base Adjustment for Seized Criminal Proceeds in VAT Law: BFH Ruling XI R 6/23

• The case involves the tax treatment of criminally seized proceeds.
• The Federal Fiscal Court ruled that the tax base for affected transactions should be reduced by the seized amounts.
• A set tax must be corrected at the time of successful seizure.
• The case involves a dispute over whether a payment made to the state treasury due to the seizure of bribes reduces the tax base.
• The plaintiff, an engineer, was involved in real estate projects and faced charges of tax evasion and bribery.
• The tax office initiated a tax investigation against the plaintiff for income and sales tax evasion.
• The court ordered the seizure of the plaintiff’s assets.
• The tax office found that the plaintiff influenced contract awards and received payments for personal gain.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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