Purchase of tax data: North Rhine-Westphalia acquires large offshore data set – criminal tax proceedings expected

The state of North Rhine-Westphalia has purchased a comprehensive data carrier containing information on suspected offshore structures. According to media reports, the data set is more than one terabyte in size and contains information on German taxpayers' holdings in companies in tax havens, allegedly involving tax evasion "on a grand scale." The Ministry of Finance in Düsseldorf informed the federal and state governments due to the nationwide relevance of the cases. Numerous criminal tax proceedings are expected to be initiated.

According to the Rheinische Post, the North Rhine-Westphalian State Office for Combating Financial Crime acquired the data carrier via a whistleblower. The authorities expect to find evidence of schemes designed to conceal assets. Reliable information on the size of the allegedly untaxed flows is not yet available.

Focus on the digital economy: influencers and international arrangements

A task force of the State Office for Combating Financial Crime has recently advanced proceedings in the creator/influencer economy (see Update Compliance 8/2025). Against the backdrop of cross-border payment flows and platform-based revenues, particular attention is being paid to accurate recording, allocation, and taxation of sales, as well as the use of foreign companies. The newly acquired data may open up additional lines of investigation in these segments.

Outlook: increased audit and investigative activity

Data purchases typically lead to wide ranging requests for information, cross check notices, and external audits. Taxpayers with foreign connections – especially those with structures in offshore jurisdictions – should expect that even formal anomalies (e. g. lack of economic substance, insufficient documentation, unexplained payment flows) can trigger in-depth audits. Companies and individuals should promptly review their international structures, payment channels, and reporting obligations, and ensure robust documentation.

Practical tip

Following evaluation of the data, the tax authorities – potentially in cooperation with public prosecutors – are likely to initiate numerous criminal proceedings on suspicion of tax evasion. Tax evasion is a criminal offense under Section 370 of the German Fiscal Code (AO). A particularly serious case generally starts at €50,000 in tax loss and regularly results in significantly harsher penalties.

In appropriate cases, a voluntary disclosure exempting from punishment pursuant to Section 371 of the German Fiscal Code (AO) may be considered.

This requires that, at the time of filing, the offenses have not yet been discovered, that all non time barred tax offenses of the same type are disclosed completely and accurately, and that the evaded taxes plus interest are paid without delay. If a notice initiating criminal tax proceedings is served, those affected should immediately retain specialized criminal tax defense counsel, request access to the files, and coordinate a defense strategy.

In the event of a search: notify counsel immediately, avoid spontaneous statements, and provide only necessary personal information. Ideally, keep an emergency card with counsel’s mobile number and clear internal instructions for reception, IT, and management.