Executive summaryOn 28 July 2021, the Luxembourg Tax Authorities (LTA) published a Circular setting forth general guidelines for setting administrative fines and penalties for specific infractions in a direct tax context. The Circular also clarifies the procedures to be applied for criminal tax offenses and how tax offices should cooperate with the judicial authorities. This Alert summarizes the guidelines provided by the Circular.Detailed discussionGeneralSeveral provisions of the Luxembourg General Tax Code (Abgabenordnung, AO) were amended in December 2016 by reinforcing the tax administration’s powers to levy fines and penalties in the case of taxpayers violating their obligations. The Circular issued by...