. . Germany - the taxman cometh

[stek]

After 50K of legal bills - a huge tax bill, interest bill and long court case I thought I had put this sh*t behind me.
The Germans go for the little man on the street who cant afford to defend himself - hiding behind shaky European laws to extradite, terrorise, imprison and intimidate contractors.
A good lawyer is essential - using the "kangaroo" style justice system here it might not help a lot - but it is the only option you have,
You may want to check out, post to and share my new facebook site - I want some public awareness of how the Finanzamt are acting.
The truth about "Freistaat" Bayern | Facebook

Tell us more about the 'scheme' you used? Think that might be your real issue.

[stayaway]

the scheme

Tell us more about the 'scheme' you used? Think that might be your real issue.

No doubt it was - PSB was a scheme sold by a man with the ininitials MM who was qualified as a chartered accountant in the UK.
This was a problem - and he gets a lot of the blame - what is wrong is the way that contractors who used the scheme in good faith get treated differently by the Germans according to
a) if they still live in Europe (if not they pay tax but dont get chased up for a fine or criminal record)
b) If they ever worked in Bavaria (who seem to have a completely different interpretation of the law)
c) If they lived outside of bavaria (where in general they can settle up, get left alone and get on with their lives)
I am sick of being hounded for VAT, extra tax and interest and even taxes on money I never earned based upon ficticious guesses from the finance authorities here.
I dont like the way contractors are pushed into pleading guilty in court for things they really didn't do with the threat of prison - This stuff doesn't happen in the UK.
I remember the PM standing on TV saying tax avoidance was really bad- but it wasn't illegal so he couldn't do anything about it other than change the law.
In Germany they chop and change the law as it suits them and judges seem to be able to decide what they want.
A bit angry today (and 20K poorer or a 2 year court battle ahead) - this time the house I travelled to almost every week where my partner lived and I planned to move back to is considered not to be a second home.

[happyradio]

Also been raided

No doubt it was - PSB was a scheme sold by a man with the ininitials MM

I have just been raided by 7 thugs & the only thing I can see wrong might be the PSB scheme back in 2006 for 6 months - It was only 20 grand put away... there was a 3 month contract at the start of 2007 through a UK Ltd, 4 month contract that lasted 3 months in 2007 & 1 month in 2008 a 6 month contract in 2009 All of which should fall within the 183 day rule.... complication is that the Mrs lived when we were still dating so spend considerable amounts of time there ... we got married in 2010 & I have never worked there since.... we've just bought a house & have been raided... perhaps someone can help me.... I'm afraid as to what would come out of it... PSB is perhaps my biggest fear

[cojak]

I have just been raided by 7 thugs & the only thing I can see wrong might be the PSB scheme back in 2006 for 6 months - It was only 20 grand put away... there was a 3 month contract at the start of 2007 through a UK Ltd, 4 month contract that lasted 3 months in 2007 & 1 month in 2008 a 6 month contract in 2009 All of which should fall within the 183 day rule.... complication is that the Mrs lived when we were still dating so spend considerable amounts of time there ... we got married in 2010 & I have never worked there since.... we've just bought a house & have been raided... perhaps someone can help me.... I'm afraid as to what would come out of it... PSB is perhaps my biggest fear

I would contact this chappy if I were you.

http://forums.contractoruk.com/accou...ml#post1639337

Don't make the mistake you made last time by taking German tax advice from a UK tax advisor.

See a German specialist.

(I would read the whole thread if I were you.)

[Apsona]

10 years on ...

Interesting thread ... still continuing ..... as I today received a letter from the F-amt saying that they suspect me of tax evasion for the years 2002-2004 (between 9 and 11 years ago) when i was contracting in Germany using the famous Albany and equally famous Mr H as the accountant .... I left Germany in late 2004 and am now in another EU nation. The letter goes on to say that, following an investigation, they have noticed a large difference between the the amount the end client paid for my services and my declared income at that time! They are asking me to provide a list of all payments I received from Albany and the agent (from Belgium) I was using at the time, inparticular any payments i recieved on foreign accounts, funds etc .... I guess that I am not alone .... any other similar experiences?

[taxbie]

10 Years on and Received it

I received an audit report and with some online translation help I figured they want to prosecute me for the year 2005. I stayed only for 4 months and did not file tax return. I would not have any tax liability.

.....

[Anonymous]

Ongoing nightmare

New to this board.
I am resident in Germany for many years.
It started with an audit for 2006. They followed every thread of payments into and out of my current account and asked for statements from my UK/Isle of Man accounts... Seeing discrepancies they persued further. Many sleepless nights ensued. Last year they raided my house, checking every nook and crany and taking every file, folder and my PC away. This gave evidence for a criminal prosecution so I came clean. Including the 6% interest (thank God it's not compound), they say I owe €180K. All my assets (car, house etc.) are in my wife's name. I go to court soon and will keep you posted.

Be sure, if you are in Germany any length of time they will check you out thoroughly, especially if you are in an area or business where there are many expats working as contractors.

[stek]

New to this board.
I am resident in Germany for many years.
It started with an audit for 2006. They followed every thread of payments into and out of my current account and asked for statements from my UK/Isle of Man accounts... Seeing discrepancies they persued further. Many sleepless nights ensued. Last year they raided my house, checking every nook and crany and taking every file, folder and my PC away. This gave evidence for a criminal prosecution so I came clean. Including the 6% interest (thank God it's not compound), they say I owe €180K. All my assets (car, house etc.) are in my wife's name. I go to court soon and will keep you posted.

Be sure, if you are in Germany any length of time they will check you out thoroughly, especially if you are in an area or business where there are many expats working as contractors.

Suity's going!

[cojak]

New to this board.
I am resident in Germany for many years.
It started with an audit for 2006. They followed every thread of payments into and out of my current account and asked for statements from my UK/Isle of Man accounts... Seeing discrepancies they persued further. Many sleepless nights ensued. Last year they raided my house, checking every nook and crany and taking every file, folder and my PC away. This gave evidence for a criminal prosecution so I came clean. Including the 6% interest (thank God it's not compound), they say I owe €180K. All my assets (car, house etc.) are in my wife's name. I go to court soon and will keep you posted.

Be sure, if you are in Germany any length of time they will check you out thoroughly, especially if you are in an area or business where there are many expats working as contractors.

IOM accounts, eh?

Well, if it wasn't the F-amt it would have been HMRC.

(Although admittedly it's unlikely you would have been thrown into jail with HMRC.)

[Apsona]

Best of luck with that one! Fortunately I am no longer living in Germany, but still in Europe....

New to this board.
I am resident in Germany for many years.
It started with an audit for 2006. They followed every thread of payments into and out of my current account and asked for statements from my UK/Isle of Man accounts... Seeing discrepancies they persued further. Many sleepless nights ensued. Last year they raided my house, checking every nook and crany and taking every file, folder and my PC away. This gave evidence for a criminal prosecution so I came clean. Including the 6% interest (thank God it's not compound), they say I owe €180K. All my assets (car, house etc.) are in my wife's name. I go to court soon and will keep you posted.

Be sure, if you are in Germany any length of time they will check you out thoroughly, especially if you are in an area or business where there are many expats working as contractors.