Criminal tax law

Criminal tax law refers to violations of certain tax laws. Examples include:

• Tax evasion, for example by deliberately filing incorrect returns or providing incomplete information to the tax authorities. This involves, for example, hiding income (through complex offshore constructions or otherwise) or falsely claiming deductions.
• Tax fraud: this occurs when deliberately false returns are filed. This can happen by concealing income or claiming expenses that were never incurred. This also usually involves the offence of 'forgery'.
• Customs fraud: Failure to pay customs duties or VAT when importing or exporting goods, for example by declaring the value of imported goods lower than it actually is.
• VAT carousel fraud: This involves using the international VAT system to obtain tax benefits. This is done, for example, by circulating goods through different countries without paying VAT.
• Money laundering: Tax offences can often also involve 'money laundering' acts, where illegally earned money (e.g. through tax evasion) is legalised through various transactions or investments.

If there are suspicions on the part of the tax authorities that tax fraud is taking place, the FIOD may launch an investigation. It is vital that you know what your rights are. Contact them immediately if the FIOD is on your doorstep.