Berlin building contractor sentenced to five years in prison for undeclared work!

Berlin building contractor sentenced to five years in prison for undeclared work!

Berlin, Deutschland - A Berlin building contractor was sentenced to five years of imprisonment on July 17, 2025 for tax evasion. As a factual managing director, he had organized his circuit company undeclared work and thus caused damage of almost 15 million euros. This serious decision was made by the presiding judge Kristin Klimke, who found that the entrepreneur has systematically relied on illegal practices since the company was founded in order to pay wages in cash and to bypass the corresponding taxes. Part of his motivated procedure was to transfer money to his homeland to Serbia and present himself there as a benefactor, as rbb24.

The court also found that the sham invoices were created by subcontractors to justify the drainage of the funds. Another judgment also met an office employee of the accused, who was sentenced to a probation penalty of eleven months for falsification of documents. The building contractor's son, who worked in the company, only received a warning. The legal consequences for the main defendant include the confiscation of tap yields of around seven million euros and 14 million euros from the company itself.

undeclared work as an explosive topic in the construction industry

undeclared work is a well -known problem in the construction industry. As explained [DIEWALTS-Chancellery] (https://www.diewaltts-kanzlei.de/steuerstrafrecht/schwarz-am-bau-t-t-das- tax backing/), it is a provision of services without proper registration and bookkeeping or corresponding tax payments. This can lead to serious criminal consequences, including high fines and imprisonment of up to five years.

employers in the construction system run the risk of not only being held liable for criminal law, but also to bear civil law consequences. It is important that everyone involved - from clients to entrepreneurs to apprentices - are responsible for any violations on construction sites. When carrying out investigations, it is advisable not to make any statements and consult a specialist lawyer for criminal law in order to avoid legal disadvantages.

strict measures and judgments

The financial and legal risks related to undeclared work are considerable. A judgment of the Nuremberg Finance Court illustrates this: A plaintiff who employed several employees without proper pay slips was convicted of tax evasion. The tax office blamed the employer in accordance with Section 42d Income Tax Act for non -paid wage taxes. In the case of illegal employment relationships in the construction industry, even two thirds of the net turnover were set as a net wage sum, which results in a significant tax burden. To this end [GTKP] (https://www.gtkp.de/aktuelles/2024-09-schwarz-im-bau-werbe-harte- and-high-liability-fuer-employer-660.html) notes that the high tax claims and liability notices can put employers into a more precious location.