Ecovis in Denmark

Cybercrime Germany – increasing prosecution for a worldwide phenomenon

In 2021, the police registered more than 146,000 cyber-attacks in Germany alone. To be able to identify and convict the people behind these attacks, which were often launched from abroad, the German public prosecutor’s offices are upgrading and investigating together with the local authorities abroad.

In the age of the Internet of Things, cybercrime can take place anywhere. The almost limitless availability of the internet makes crime possible wherever people can use computers or smartphones. In the office, at home and on the street – a kind of “crime to go”. Moreover, the crime scene is not necessarily identical with the place where the crime is committed because it takes place in the virtual world – hundreds of kilometres can lie between the two. However, if the victim is based in Germany, the offence is also punishable under German criminal law, explain the Ecovis lawyers.

German prosecutors are taking action against cybercrime from abroad

Due to this special feature of the criminal law, there are now an increasing number of cases in which the German public prosecutor’s office is also investigating abroad in close cooperation with the local authorities.

Technically, a distinction is made between “cybercrime in the narrower sense” (crimes directed against the internet, data networks, information technology systems or their data) such as the use of malware, spam and phishing, or the creation of fake websites and “cybercrime in the broader sense” (crimes committed by means of information technology). Money laundering and cryptocurrency fraud may also fall under the definition of cybercrime.

In Germany, due to the increase in cases in the field of cybercrime and due to the complexity of the cases, separate investigation units have been formed at public prosecutor’s offices, e.g. the Central Cybercrime Unit Bavaria (ZCB).

Are you under investigation for cybercrime in Germany? We defend you against the charges in Germany.

Janika Sievert, lawyer and specialist in criminal law and tax law, Ecovis L+C Rechtsanwalts GmbH, Wuerzburg, Germany

An example: How investigators work with their colleagues on location

Bavarian media recently reported on one such special unit case (Bayerischer Rundfunk, retrieved 16.02.2022, only available in German). The case led to the arrest of 11 members of a group acting in Georgia and Tel Aviv and pretending to invest funds profitably in online platforms worldwide.

Following a report from an injured party from Bavaria, the special unit of the public prosecutor’s office took over the proceedings already pending on the online platforms and contacted the competent local investigating authorities with the help of Eurojust. The evidence gathered in Germany and abroad led to the issuing of arrest warrants by the Bamberg district court. After the arrests, extradition was requested. The accused are now awaiting criminal proceedings in a German court.

The high degree of specialisation of the investigating authorities also requires specialist defence for the accused. As experienced criminal defence lawyers in white-collar and criminal tax law, we also defend such complex cases throughout Germany.

For further information please contact:

Janika Sievert, lawyer and specialist in criminal law and tax law, Ecovis L+C Rechtsanwalts GmbH, Wuerzburg, Germany
Email: janika.sievert@ecovis.com

EU Corporate Sustainability Reporting Directive: Businesses need to rethink

On 21 April 2021, the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD), which will eventually amend the existing reporting requirements of the Non-Financial Reporting Directive (NFRD). From 1 January 2024, companies that fall within the scope of the directive must adapt their reporting to the CSRD requirements for the 2023 financial year. The Ecovis experts explain exactly what companies must do.

Under the NFRD, large public-interest companies with more than 500 employees are obliged to report information about their entity’s handling of:

• Environmental matters
• Social matters
• Treatment of employees
• Respect for human rights
• Anti-corruption and bribery
• Diversity

We discuss with you how the CSRD affects your company and prepare you for the reporting obligations.

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta

In its strong belief that consumers and investors alike deserve accurate information to assess the sustainability impact of businesses across the board, the European Union has proposed a directive, which:

• Extends the scope of reporting obligations to
  • All large companies meeting at least two of the following criteria:
    • 250 employees
    • EUR 40 million turnover
    • EUR 20 million total assets
  • All companies listed on regulated markets (except listed micro-enterprises)
• Requires the reported information to be subjected to an audit (assurance)
• Introduces more detailed reporting requirements
• Enhances accessibility of information through a dedicated section of company management reports

This newly proposed infrastructure under the CSRD will include the adoption of EU sustainability reporting standards, developed by the European Financial Reporting Advisory Group (EFRAG), which companies will be required to follow in their reporting obligations arising out of the directive.

For further information please contact:

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta
Email: malta@ecovis.com

Controlling Beneficiaries

Validity

As of January 1, 2022

Legal Basis

Articles 32-B Ter, 32-B Quater and 32-B Quinquies of the Federal Tax Code (CFF) in correlation with rules 2.8.1.20 to 2.8.1.23 of Miscellaneous Tax Resolution 2022 (RMF) and articles 84- M and 84-N of the CFF itself.

Who are the controlling beneficiaries?

• Always is and will be a individual.
• Subjects who, through companies, contracts or third parties, kept their identity reserved, anonymous or hidden.
• Real or final beneficiary, who may be different from the legal or nominal owner of one or good.
• Those who participate in a legal entity, trust or any other legal form and who directly or indirectly obtain benefits or exercise the rights of use, enjoyment, benefit, use or disposal of a good or service exercise control of the legal entity, trust or any other legal figure.
• When no individual is identified, the controlling beneficiary will be considered to be the individual who holds the position of sole administrator or each member of the board of directors, as appropriate.

Obligation

• It is a different and separate tax obligation from the obligation to identify controlling beneficiaries in vulnerable activities in terms of anti-money laundering law.
• Preserve and keep up to date as part of their accounting the corresponding information of their controlling beneficiaries in order to keep it available when the tax authority requires it.
• Identify and disclose chains of ownership and control.
• Identify and disclose the controlling beneficiaries, including legal entities or trusts or legal figures that are made up of foreign individuals or by national or foreign legal entities, for which the corresponding chains of ownership and control must be identified.
• Likewise, the obligation is not only applicable to legal figures that are required to register in the federal registration for taxpayers (RFC) or those governed by Mexican law, so this obligation is also applicable in the case of trusts, limited partnerships, among others.

Obliged Subjects

• Legal entities
• Notaries public
• Trustees, settlors or trustees
• Financial institutions (for purposes of the Income Tax Law in the case of information related to financial accounts)

Sanctions

• Between MX$500,000.00 and up to MX$2,000,000.00 for each controller beneficiary not validated or identified.
• Negative opinion of compliance with tax obligations (which may imply restriction of digital stamps or suspension of importer or exporter registers)

Verification powers

• Home visits and cabinet reviews apply

For further information please contact:

Kennya Ramírez
Senior Tax Consultant
kennya.ramirez@ecovis.mx
ECOVIS México
CDMX, Office