Scandal in the sand: loss of millions due to incorrect trade tax!

Scandal in the sand: loss of millions due to incorrect trade tax!

In Sande, a municipality in the Friesland district, a massive trade tax scandal is causing excitement and significant financial consequences. As [ndr.de reports](https://www.ndr.de/nachrichten/niedersachsen/oldenburg_ostfriesland/sande-gewerbesteuer-skandal-verursacht-millionen Schaden,gewerbesteuer-102.html), an employee of the tax administration has assessed trade tax revenue incorrectly or not at all for many years. The suspicion of inadequate fulfillment of their duties extends over the period from 2006 to 2023 and could cause the community millions of dollars in damages.

The municipality of Sande, which generates around 5 million euros in trade tax revenue annually, is particularly affected because not all of the approximately 600 local businesses are subject to trade tax. In fact, around 900 tax assessments were supposed to be processed, of which only 255 were assessed. The Oldenburg public prosecutor's office has already initiated an investigation into suspected breach of trust after the municipal treasurer discovered irregularities at the beginning of September. After examining files, he felt compelled to inform both the audit office and the public prosecutor's office.

Investigations are ongoing and additional payments are threatened

We are currently working with an external tax office to check how much of the affected trade tax revenue was actually incorrectly assessed. The municipality has set itself the goal of not letting the statute of limitations expire. Numerous companies will probably have to expect additional payments, which will make the conflict even more stressful for the companies affected. The results of this audit should be available by the end of the year.

It remains unclear whether the employee acted intentionally or whether she was simply overwhelmed by her tasks. The ongoing investigations could bring clarity here. In general, in Germany, official facts that suggest a tax crime are reported to the relevant authorities as quickly as possible in accordance with the guidelines of the Federal Central Tax Office. This includes the authorities and courts that are obliged to report in accordance with Section 116 of the Tax Code.

Tax crimes are a serious problem

The current events in Sande are by no means an isolated case. [The Federal Ministry of Finance](https://www.bundesfinanzministerium.de/ Monatsberichten/Kurs/2024/10/content/Kapitel-3-Analysen/3-1-tracking-von-steuerstraftaten-2023.html) recorded around 47,900 criminal proceedings for tax crimes nationwide in 2023. In this context, tax evasion and similar offenses are classified as serious crimes, which not only have legal consequences, but can also significantly undermine trust in public administration.

The situation in Sande makes it clear that transparency and correct administrative processes are of central importance in order to prevent such serious problems. The community and the authorities are faced with the challenge of regaining the trust of citizens while at the same time taking the necessary steps to limit the damage.