In 2025, entrepreneurs operate in an environment of intense KAS audits, and liability for tax errors increasingly affects not only the company but also management board members. The Fiscal Penal Code imposes severe penalties for negligence in the areas of taxes, accounting, or invoices. This guide explains why violations occur, which KKS provisions are most frequently violated, and how the tax compliance system effectively limits the liability of management.
1. What is the management board's liability for tax errors?
The Management Board is fiscally liable for the organization and supervision of tax processes – even if it does not perform them personally.
What does the Fiscal Penal Code say?
Article 9 § 3 of the Penal Code states that liability rests with the person " responsible for the economic affairs, particularly financial affairs " of the entity. This means that the following persons may be held liable:
- members of the board,
- financial director,
- chief accountant,
- persons supervising tax settlements.
Most often they are responsible for the violations described in:
- Article 56 of the Penal Code – exposure to tax depletion,
- Article 60 of the Penal Code – unreliable bookkeeping,
- Article 62 of the Penal Code – issuing or using unreliable invoices,
- Article 77 of the Penal Code – violation of payer's obligations.
What is important: lack of knowledge does not exempt from responsibility
The case law of tax courts indicates that management is obligated to organize the tax system so as to ensure compliance with the law .
Neglect of supervision may be considered:
- unintentional action,
- gross negligence.
2. What tax crimes do companies commit most often?
The following violations dominate the KAS audit practice:
Most frequently found errors:
- exposure to tax depletion (Article 56 of the Penal Code),
- unreliable bookkeeping (Article 60 of the Penal Code),
- using unreliable invoices (Article 62 § 2 of the Penal Code),
- failure to fulfil the payer’s obligations – e.g. in the PIT of employees (Article 77 of the Penal Code),
- MDR violations – lack of or incorrect reporting of tax schemes (Articles 80f–80g of the Penal Code).
Statistics
The Ministry of Finance indicates that over 70% of fiscal penal proceedings result from inspections in which missing documentation or incorrect supervisory procedures were detected.
What is characteristic is that most often it is not about conscious intention , but about a lack of internal control.
3. Why do entrepreneurs violate the provisions of the Penal Code?
The most common causes are organizational, not intentional. Examples include:
System errors in the company:
- lack of an effective control and supervision system,
- improper document circulation,
- unclear division of responsibilities,
- outdated procedures,
- insufficient verification of contractors (VAT white list, STIR),
- no tax audits,
- ignorance or incorrect interpretations of tax law.
The Penal Code provides for liability not only for the perpetrators of the act , but also for persons who, through negligence, made it possible to commit it .
4. What is tax compliance and what does it include?
Tax compliance is a system of procedures, policies and controls designed to ensure that a company's operations comply with tax regulations.
Key elements of tax compliance
- identification and assessment of tax risks,
- document circulation and archiving procedures,
- verification of contractors: VAT white list, STIR, beneficial owner,
- transfer pricing documentation,
- MDR procedures,
- periodic audits and control tests,
- employee training,
- clear division of competences and responsibilities,
- channels for reporting violations (whistleblowing).
5. Does compliance really protect management from sanctions?
Yes. An effective compliance system serves a protective and evidentiary function.
How does compliance limit liability?
- It can exclude blame – if the company acted in accordance with procedures and the violation occurred despite their application.
- Protects evidence – registers, training and audits document due diligence.
- Reduces the risk of liability for a collective entity – lack of supervision can burden the entire company.
- It increases the chances of being treated more leniently by the authorities – cooperation and transparency are rewarded.
In the practice of KKS matters, well-documented compliance leads to:
- waiving the imposition of a penalty,
- classifying an act as a misdemeanor instead of a crime .
6. FAQ – most frequently asked questions by entrepreneurs
Can the management avoid liability if it did not know the details of the settlements?
No. Lack of knowledge does not exempt from responsibility – the management board is responsible for the organization and supervision of the tax system.
Are compliance procedures alone enough?
No. They must be used, updated and documented.
Can compliance reduce the penalty?
Yes. Documented diligence often leads to leniency.
Do MDR obligations burden the management board?
Yes. The KKS provides for liability for incorrect or missing MDR reports.
7. Summary and recommendations
In 2025, tax authorities will increasingly use analytics and audits to detect irregularities. Therefore, an effective tax compliance system is no longer a voluntary standard, but a necessity .
Most important activities for businesses:
- conduct a tax risk analysis,
- implement control and document circulation procedures,
- regularly update tax policies,
- train employees responsible for settlements,
- document supervision and diligence activities.
A well-organized compliance system can actually limit or even exclude the fiscal criminal liability of the management board.
Do you want to implement effective tax compliance?
Contact the KG Legal team – we help companies build tax security procedures and represent clients in KKS proceedings.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 10, 2025
Author:
Series editor:
