. . Germany - the taxman cometh

[SalsaFever]

Of course, I don't know what the sequence of events leading up to this were, in this particular case.

Ok, after some short talk with a legal representative, I have some idea about Strafbefehl, which cases it used etc. I do not claim this info is accurate or true etc. Please seek help from your own counsel.

'Strafbefehl' is a judical short cut to get a court order without actually hearing takes place.
It used to save time in both sides (prosecutors, judge, defence etc). Actually it's an opportunity offered to the defense to conclude the proceedings with minimum damage.
Mostly used petty crime, traffic crimes, some cases of tax crimes where the defending the crime is more costly than punishment itself.

In order to get judgment using Strafbefehl there are two main requirements:

1) Either prosecutor has very strong and obvious evidence against you. (e.g. you passed on red light and photo taken; you caught driving while influence or with no valid license) Basically you've been caught pants down.

OR

2) you have been confessed and admit the crime, AKA plead guilty. Some cases did a plea bargain, which means you have some negotiations over your punishment and accepted the outcome.

Then prosecutor goes to the judge to get this order and you are two weeks to object.
If you object, then there will be real court hearing takes place.

In particular to this case, I believe there are two scenarios:

1) While this guy is in UK, f-amt found some hard evidence he can't deny and sufficient for f-amt to able to get Strafbefehl. This is very highly unlikely according to my legal counsel, at least f-amt should have sent 'mehrsteur' letter asking to pay back taxes and at least a notification about the investigation asking his opinion. Maybe he did not received those or received but ignored.

2) This person is already in talks with f-amt, admitted and even done a plea bargain, already aware of the outcome.

Usually, while f-amt investigates you, at some point they approach you or your legal representative to discuss a settlement. (e.g.f-amt says: you accept to pay back taxes plus 30,000 EUR fine + criminal record, then we close your file quietly OR else we go to court and seek jail terms as well)
If you accept and sign the deal, then f-amt takes your confession to judge the get Strafbefehl.

It's like a poker game, sometimes bluff works.

Regarding the two week notification requirement, it's a bit ambiguous how this applies to foreign addresses. Since it takes 1-2 weeks to get a letter from Germany to UK using snail mail which f-amt uses.
Moreover It's always different dates on the letter itself and the post stamp on envelope, yet alone the day delivered. German law isn't clear which date should be relied upon.
So best advice is if you receive a weird looking letter from Germany, immediately go to local post office and get the delivery date stamped.

In case you missed the two weeks deadline, you can directly go to European Human Rights Court -since by that point, all means of German legal system is consumed- and use the delivery date as evidence to re-open the case.

[BlasterBates]

If you don't pay even a small fine you go to jail, and it really doesn't matter what happened at the post office. This is quite normal. When they arrest you, they give you the opportunity to pay. But that needs to be like immediate, otherwise you stay in the clink for 3 months or until you've paid the fine. There are people in jail for not paying their bus tickets.

[AndyCapp]

Strafbefel

Since the "Strafbefel" isn't mine, I'm not posting any of it. But see - it IS possible to get a conviction from just a judge and a prosecutor. You can believe, or disbelieve what you like. The figures I quoted are accurate.

I'm guessing most posters here don't understand German very well, so perhaps that leads to confusion, inaccurate information & silly posts.

Seems there are so, so many armchair lawyers here. Better stick to your day jobs ....

[Slumdog]

On a very similar note. Although I have had a tax bill worked out for the year 200x. I havent yet paid the money and have not received any correspondence asking me to do so from f-amt. Will they send me a reminder or should i go ahead and pay it anyway?

[R&B]

My radars picking extraordinary activity nowadays.

F-amt busy just like same time around last year. I assume they want to catch contractors before they leave for chrismas vacation, since some of them won't be coming back because of expiring contracts or this tulip going on.

Last weeks I heard two more raids. One is totally unrelated to Mr.H

I was mentioned before, 6 months ago a friend of mine asked by f-amt to provide contracts and invoices. Following to that story: Now he was raided.

He was using MC Pxx. I assume once f-amt spots Pxx or Axxs or anything like that in the papers, they dig it hard.

This time f-amt was very rude, the guy had a hand search pockets, wallet and everthing, they took his UK bank cards. So don't leave unnecessary cards in your wallet, post them to UK asap.

Another development, I hear some letters sent to UK addresses,saying that tax returns are not correct and asking to do self-confession.

Once particular case, f-am't directly called an accountant and suggested that her client should do a self-confession ASAP before the investigation started. (you know who she is, if she has your files, better get them asap, becaue IMHO she will most likely be a second Mr.H case, I am %110 sure she will be raided very soon, so there will be another Mr.H like story thread here)

Now I have two guys with Axxs and Pxx caught and will see how MC will react. I wonder if they are here to help or just buddies for the good times.

Initial impression is that Pxx doesn't care, but might be wrong will update soon. Axxs is more responsive and caring, but so far, offered no action plan.

The most clueless one is TxxC, if you are working with them, just dump them, they have no idea what going on and they are totally unprepared and ignorant..

So that's the latest news from the German front

SalsaFever, any update on this?

[BlasterBates]

On a very similar note. Although I have had a tax bill worked out for the year 200x. I havent yet paid the money and have not received any correspondence asking me to do so from f-amt. Will they send me a reminder or should i go ahead and pay it anyway?

The "Steuerbescheid" (from the FA) will also be a demand to pay, unless you paid it beforehand. They don't send any separate demand, unless you don't pay in which case you'll get a reminder and then the usual debt collection process. Until you've received your Steuerbescheid no need to pay anything.

[R&B]

I have had to read the whole thread from the start, so apologies if I am repeating anything.

I am in the same situation as many here and many others that I know.

However, I received a MARD last year and for those unaware of this little beauty let me worry you.

So what happend? Did you get a letter from the uk taxman or a visit?

[AndyCapp]

So what happend? Did you get a letter from the uk taxman or a visit? or maybe even got your bank freezed?

An initial letter, followed by a request for my appearance for a chat.
I had prepared a bit though (see links posted by somebody else) - so I knew they would take no action here if things were still not finalised in Germany. All assets in Germany were frozen more than three years ago, but I still managed to sell a property as the Bank had first call over the Finanzamt - MUCH to their annoyance.

Proceedings in Germany are not yet concluded (though too late to make any more objections), but the day WILL come. This will lead to a bankruptcy here.

I didn't receive a "Strafbefehl" yet, but I guess that might be on it's way sometime soon.

Some of this must be luck of the draw, as I know people who were operating using the same middle men as others - but have so far been left untouched.

[themeditator]

German Contract...Confusing or am i just not getting it

Hey guys,

This is a great post however now i am in a situation myself and would like those who have experience of the below to let me know how is the best way to deal with it.

I shall shortly be contracting for a German IT company. I have gone through the trade union or workers council in Germany which have given their approval.

My agent in the UK which has secured the contract for me has suggested I use a firm called Consort Consulting however looking on this site some people have recommended CPM?

I was wondering whether anyone has experienced using CPM and how their service is. Do they obtain your freelance status or are they the equivalent to a management company in the UK as it appears they also provide a tax service?

The contract shall be for four years and there is so much information out here that i am unsure which is the best route to take.

I shall be running a second home from the UK which to my understanding from reading this post means that i can claim rent whilst out in Germany.

In summary would appreciate your feedback on services to use out there to reduce the hassle, stress and get the most out of it whilst be fully compliant

my circumstances are....
4yr contract
450 euros a day on a german contract with a german employer
uk home shall still be operating

Appreciate your feeedback and look forward to your replies.....




M

[AdrianH]

The best option is to simply pay your tax in the UK. Many UK contractors work like this in the EU. Do not register with the local authorities or open a German bank account, stay invisible.

Paying full-whack German tax doesn't bear thinking about. Using an offshore scheme could get you into trouble.