Contracting in Germany

[bavarian]

Does anyone have any current experience of these companies, which in the past have offered off-shore trust arrangements to consultants working in Germany. The scheme involved payments fully declared to the German taxman and other payments held in the trust, accessible either as loans or held until a later date when the balance could be extracted. The idea is to move from Germany to another more favourable tax location before extracting the balance of the trust fund. Should I consider this arrangement?

[Close2Bankrupt]

Management firms were suggested to me a few years back by 2 different agencies in Germany, but I never made the move.

I am now considering a contract in Germany, without an agent, but have not managed to find much information.

Does anyone have any experience of working through management firms in Germany? How legal is the whole configuration? What gaurantees are there that the trust money becomes yours?

[LisaContractorUmbrella]

Almost Swiftian in its rapier like subtlety

[tim123]

Almost Swiftian in its rapier like subtlety

I know what you mean when using that term, but why does it mean that?

(please)

tim

[tim123]

IME all of the overseas management companies that offer reasonable returns operate in the way that you have suggested.

And wrt Germany, I have been told that the Finanzamp have recently had a round up of people operating through dodgy schemes and assessed them for tax on the gross billings, though I have no idea of the details.

tim

[LisaContractorUmbrella]

I know what you mean when using that term, but why does it mean that?

(please)

tim

Afraid I was being a might sarcastic Swift was a poet known for subtlety, I believe a rapier is a type of sword. The actual quote comes from Red Dwarf

[TheFaQQer]

Almost Swiftian in its rapier like subtlety

Far too aruldite for round here, shirley?

[Gonzo]

Far too aruldite for round here, shirley?

Perhaps it should be a "sticky".

[tim123]

Far too aruldite for round here, shirley?

erudite

[tim123]

I've also heard something about this Finanzamp disclosure.
I'm really interested in this matter, so if you guys know anything pls share your knowledge here.

Do you exactly know what consequences are for us, for overseas consultants in such an event? Might we end up in jail for instance?

No, not unless you've fiddled a couple of hundred million. You'll recall (or perhaps you won't) that Boris Becker got 2 years probation for evading 2 million. At the time, this amazed everybody by it's leniency, but it was stated as being the normal punishment for the level of the offence.

So, if they think you've fiddled 20K, they send you the bill and you either pay it or leave the country never to return. Currently tax demands are not internationally enforceable, but I think that steps are being discussed to end that.

tim