Fake invoices and subcontractors in the construction industry: Legal protection against tax and criminal risks

from
Dr. jur. Marc Fornauf
Lawyer
Specialist tax lawyer
Specialist in criminal law

Give me a call: 0261 - 404 99 761
E-Mail:

The use of subcontractors is an integral part of the construction industry. However, this is precisely where companies face considerable tax, criminal, and social security risks—especially through so-called fictitious or cover invoices. Even the accusation of being involved in such systems can jeopardize a company's existence: tax offices cancel input tax deductions, investigations for tax evasion (Section 370 of the German Fiscal Code) and withholding of social security contributions (Section 266a of the German Criminal Code) are threatened, as are civil and social security claims and severe collection measures.

Recognize typical risks – take countermeasures early on:

Use of "empty shells" as subcontractors without their own or constantly changing personnel and operations
Cash refunds, commission deductions, opaque cash flows
Unclear or blanket service descriptions, lack of evidence of personnel or material use
Seemingly proper service or construction invoices with unjustified VAT statements

Your benefit: Comprehensive advice and effective protection As a specialist lawyer for criminal law and tax law specializing in construction companies and subcontractor constellations, I provide support in all critical areas:

Thorough prevention advice – from the selection and review of your subcontractors (due diligence, subcontractor checklists) to the drafting of audit-proof contracts, invoices, and documentation
Immediate measures in the event of audits and investigations: support in tax and criminal proceedings, targeted points of attack in the event of allegations of fictitious invoices, undeclared wages, and risks under Section 266a of the German Criminal Code
Defense and enforcement of your rights – well-founded analysis and defense of civil and social security law as well as criminal and tax law liability claims, including protection against economic recovery measures

Why is timely advice crucial? In cases involving fictitious invoices and cover-up systems, the financial and criminal courts rely on clear evidence and a heightened burden of proof to your detriment. Even minor errors or omissions in the selection of subcontractors or invoicing can have unforeseeable consequences. With legally sound prevention and a clear defense strategy, risks can be minimized and decisive advantages secured in serious cases.

Contact me if:

You regularly work with subcontractors and want to make your processes legally compliant
you or your company are already under financial or criminal investigation for fictitious invoices
You recognize uncertainties in your invoicing and payment flows and are seeking professional support in good time
Rely on our specialized and experienced advice: for preventive protection and effective defense in serious cases.

The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.