. . Germany - the taxman cometh

[Edelweiss]

If you haven´t paid a fine even a small one you will be arrested and held in jail for up to two or three months until you've paid. I have a friend who spent two weeks in a high security jail. This was because of not paying a few hundred quid fine. He was released after arranging to pay it. As long as you remain in contact with the authorities thois won´t happen though because first they would warn you, and it maybe that the police did arrest you but as long as you pay the fine on the spot then they wouldn´t take you in.

To me that dont make sense coz the "Fine" is a realtively small % of the evaded tax + interest?
I was given the impression it was pay up the back tax or do the bird.
I also have the impression punishment (fine + criminal record) is an option to them depending or you co-operation.

[Edelweiss]

Does anybody know the best place to register a formal complaint about the Bayern tax Authority I+II outside of Bayern?

I'd like to know this as well!

The British Consulate in Munich told me to have my case reviewed by the ECHR becuase I was singled out. But I cant imagine any civil servant having any sympathy in a Tax case.

[BlasterBates]

To me that dont make sense coz the "Fine" is a realtively small % of the evaded tax + interest?
I was given the impression it was pay up the back tax or do the bird.
I also have the impression punishment (fine + criminal record) is an option to them depending or you co-operation.

Back tax is a civil case. As long as you pay your fine. They won't jail you for unpaid back tax, it doesn't matter how much you owe them. If you've evaded more than 100 grand I believe they might press charges, but otherwise they'll chase you up through the courts in the UK. In fact that is their most likely course of action. They're just interested in getting their money back. But anyway I would see a lawyer. If you owe a huge amount you could consider bankruptcy but you'd need to see a lawyer about that. I understand that is an option as I believe the Finanzamt doesn't have a special status in that respect. But who knows they may decide to press charges on tax evasion, but as you say the fine is relatively small.

Anyway don't listen to me. I had a colleague who went back to the UK, who was on a scheme, but there was no talk of prosecution, he owed them over 100 grand, they just chased him up in the UK and didn't even get to court. I wouldn't worry too much about prosecution, it just isn't worth their while.

[Edelweiss]

Back tax is a civil case. As long as you pay your fine. They won't jail you for unpaid back tax, it doesn't matter how much you owe them. If you've evaded more than 100 grand I believe they might press charges, but otherwise they'll chase you up through the courts in the UK. In fact that is their most likely course of action. They're just interested in getting their money back. But anyway I would see a lawyer. If you owe a huge amount you could consider bankruptcy but you'd need to see a lawyer about that. I understand that is an option as I believe the Finanzamt doesn't have a special status in that respect. But who knows they may decide to press charges on tax evasion, but as you say the fine is relatively small.

Anyway don't listen to me. I had a colleague who went back to the UK, who was on a scheme, but there was no talk of prosecution, he owed them over 100 grand, they just chased him up in the UK and didn't even get to court. I wouldn't worry too much about prosecution, it just isn't worth their while.

My back tax was much less than that but they threatened prosecutuion from the off and said I was already guilty of evasion, even though they said it was all controlled by the Agent and I was an Employee. My case was sent to Bußgeld und Strafsachenstelle but they haven't officially asked for a fine yet. My report says it is a "Criminal" case? Maybe that is a pressure tactic? I dunno...

[BlasterBates]

Tax evasion prison

According to the above link any tax evaded of more than 50000 can result in a suspended jail sentence. So in fact I can see that potentially jail does beckon if you do a "bird".

I would take some legal advice.

As already has been siad as long as you pay up they probably won't prosecute.

To challenge any decisions you need a very good Tax consultant and lawyer. They might be able to reduce the tax owed, or argue "no responsibility"

I wonder if you get a fine then pay it then I would have thought that's the end of any prosecution. The back tax is still a civil matter for which they can't prosecute. It might be even be worth going to the UK and go through a bankruptcy. I don't see why not.

[Edelweiss]

To challenge any decisions you need a very good Tax consultant and lawyer. They might be able to reduce the tax owed, or argue "no responsibility"

They tried to take the complete amount out of my German bank the day I was raided, so I guess they already thought it was an open and closed case.

I spoke to a top drawer Lawyer about "no responsibility" and even as a Tax Class 1 Employee, their position is that you didn't make declarations to hide money and you should've blown the whistle on the whole split-system anyway!

[actonbabie]

Entrapment

I understand that Garner/Ged GmbH has been forced to pay the tax due for the ten years they were running their scheme and their employees who had already paid are getting their money back from the FA.

I heard P+Z GmbH have paid 6.5 million Euros to the FA to cover their employees also.

I would have thought there was a HR case if you are ex P+Z and you have already paid.

In the case of Garner the FA had known some 6 years earlier of the existence of these payments from a certain Mr Fxx whom was indicted in 2002, as it was documented in a friends indictment file from the FA. The FA would be guilty of not acting on information received in a ‘reasonable’ time

[Edelweiss]

I understand that Garner/Ged GmbH has been forced to pay the tax due for the ten years they were running their scheme and their employees who had already paid are getting their money back from the FA.

I heard P+Z GmbH have paid 6.5 million Euros to the FA to cover their employees also.

I would have thought there was a HR case if you are ex P+Z and you have already paid.

In the case of Garner the FA had known some 6 years earlier of the existence of these payments from a certain Mr Fxx whom was indicted in 2002, as it was documented in a friends indictment file from the FA. The FA would be guilty of not acting on information received in a ‘reasonable’ time

Yeah, there's already a HR case coz they selected certain people to be raided, I heard the list came from P+Z. This makes sense to me coz Ms Lxxxxxxxx's friends weren't on it!

The splits were never a secret anyway and the CC's have a on-going history of using middle-men and kickbacks a to bribe foreigners to grease wheels. For example: The Karlheinz Schreiber case. Of course the FA says the CC's had no idea... FFS.

[Dominic]

This is what happened to me

Update:
I have decided to inform everyone about how it worked out for me … so far.
My situation was that my UK service company had a contract with a German agency (GmbH) which had a contract with a major aerospace company (international) but due to security reasons, the work had to be carried out in Germany. I lived there with my family for 10 years servicing the contract. My UK service company invoiced the agency for 100% of the money, and I invoiced my service company for about 50% to 80% of the money. I paid German income tax on my income (the 60% to 80% part), and the UK service company (that I owned) paid the UK corporation tax on the profit from the rest.

The Gestapo claimed that the UK service company was a sham and that the money that went to the UK was my money and they wanted the tax on that. Further more the didn’t give a hoot about the tax already paid to the UK from that company.
The Gestapo demanded (and I paid to avoid jail) 160,000 Euros in unpaid taxes (the difference between my income and the part that went to the UK … They allowed 10,000 Euros per year for administration costs and guarantee risks that the UK company had). They demand 40,000 Euros in interest (6% per year). They used a 10 year period citing tax fraud, not tax evasion or even tax avoidance. The court gave a 15,000 Euro penalty, and a criminal conviction meaning that I can not enter the USA or some other countries now for at least 10 years.
The UK tax authorities are deciding if I can re-state my company’s profits ( but only for 6 years and no interest returned ). With a lot of luck I may get back about 25,000 GBP. My fingers are very crossed.
I have started a litigation process with my former steurberator via a UK law firm. I am trying to claim the extra costs incurred due to their negligence , since they were fully aware of the contract arrangements, the money flow and should have been aware of the German tax (rules?) about which country exactly we entailed to the tax. This would be the penalty, the 10 year interest payments and the difference between the UK 6 year tax back to the 10 year German grab (assuming we get our money back).
So far the steurberator, has not responded and the case has now been taken up by a German law firm.
Anyway, that what’s happen to me so far. I will never work again in Germany nor allow any Germany company to benefit from me. As soon as we get rid of the communist government of the UK, I intend to get my new MP to start looking into this grossly unfair situation, starting with ensuring German companies working here (and there are hundreds of them) are being properly taxed in the UK.

[darmstadt]

Anyway, that what’s happen to me so far. I will never work again in Germany nor allow any Germany company to benefit from me.

So you won't be using anything from a company that has SAP installed then I take it?