Tax fraud or misuse of public funds in Hungary? English-speaking criminal defence lawyer

Foreign companies and entrepreneurs doing business in Hungary can come to the attention of the Hungarian tax authority (NAV). If a criminal investigation has been opened for budget fraud (költségvetési csalás), the defence must be prepared before the first interview.

Dr. László-Tamás Benő: +36 70 379 0245 (0–24)

Call now: Dr. László-Tamás Benő

What does Hungarian law say?

The offence (Section 396 of the Hungarian Criminal Code) covers misleading the authorities, false statements or concealing facts in connection with taxes, duties, VAT, contributions or public and EU funds, where this causes a loss to the budget.

What penalty can you face?

Basic offence: up to 3 years’ imprisonment
Substantial loss, or in a criminal conspiracy or on a commercial basis: 1 to 5 years
Particularly large loss: 2 to 8 years
Particularly substantial loss: 5 to 10 years

Important: the sentence can be reduced without limit if the loss is repaid in full before indictment (except where the offence was committed in a criminal organisation or by a special repeat offender). If the loss does not exceed HUF 500,000, it is not a criminal offence (in customs matters it is a customs infringement), but the losses from offences committed by the same person within one year and tried together are added up (Section 462 (3)–(4)). The loss also includes lost profit. Thresholds (Section 459): small loss HUF 50,001–500,000; larger HUF 500,001–5,000,000; substantial HUF 5–50 million; particularly large HUF 50–500 million; particularly substantial over HUF 500 million.

What should you do now?

Do not make a statement without a lawyer.
Ask for an interpreter in your own language.
Ask for copies of the official records and call us before the interview.
If a family member has been detained in Hungary, find out where they are being held and call us immediately.

How we help

We explain every document and every step of the procedure in English
Coordinating the tax proceedings and the criminal proceedings
Checking the accounting expert opinion and the calculation of the loss
Challenging the freezing of assets
Using the option of a reduced sentence by repaying the loss

Frequently asked questions

Is every tax discrepancy a criminal offence?

No. A discrepancy found by the tax authority is not a crime in itself; there must be deception, a false statement or concealment of facts.

Does it help if I pay back the loss?

Yes. If you repay it before indictment, the sentence can be reduced without limit.

I live abroad. Who will try my case?

An offence committed in Hungary is dealt with by the Hungarian authorities. We can represent you and keep you informed in English.

Call us now, day or night

Dr. László-Tamás Benő: +36 70 379 0245

Office: Falk Miksa utca 4, mezzanine 4, 1055 Budapest (by appointment only)

Benő & Willi Defence Attorneys