. . Germany - the taxman cometh

[BlightyBoy]

All contractors heading for Europe should take note of that. If you are going on a long term contract then forget all about the UK and your Ltd company there as you are now tax resident in your new country. HMRC has zero to do with you anymore so get with the system where you are going.

But therein lies the problem...

Most contractors do not move to Europe for work initially with an idea of staying long-term. Most contracts are on a 6-month basis and therefore the initial intention is to come out, bag-up some cash and then return to the UK, or indeed move elsewhere, e.g. Switzerland, Holland, Belgium etc.

They are presented with a solution by an MC or agent (who oftentimes is not particularly well informed) which they then go with. And, for the 6 months that they are in Germany (or where-ever) the offered solution is probably OK.

It is only when an extension is offered, or other work found in Germany that contractors begin to settle down more, and that is when it gets difficult, because that is when the initial solution is no longer applicable, or even valid.

I am aware of a few erstwhile colleagues from a former client who had an arrangement that is no longer legitimate. Their remaining in Germany beyond a certain point in time has also de-legitimised the original arrangement, and they are now "saddled" with what is essentially a time-bomb. They are unwilling to redeclare or change the arrangement for fear of drawing attention to themselves, but also live with the risk of being investigated and/or exposed by an investigation of a management company and/or dodgy-dealing german accountant.

For newbies moving out to germany it is all fairly clear what is required, and definitely a case where more is more. For those who came out originally on a short-term contract, to "test the water" so as to speak, there is now a significant amount of back-tracking and side-stepping to be done with regard to potential fines etc. resulting from a tax investigation.

[SalsaFever]

any updates on this thread?

We had a quite summer but my radars just picked up some search and seizure activity in Bayern. Anybody has the details?

Is it the same story fmt are re-heating again?

[gremlin]

I have just received a letter from the German tax man here in the UK stating that they feel that my declared income is incorrect. So they havent given up just yet. And yes I was using Mr H......

[SalsaFever]

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

[LegendsWear7]

Dis-engaging from Mr H.

Still paying here. Had two bills (Zinsen) this week. But I think it is over now. So I've written 4 emails to H explaining that I now no longer require representation in Germany or their service. I ask for confirmation that all matters are closed and receive vague response.

I don't want any more bills from H, especially retainer for 2010.

Is there an official / established route to cancel an accountant in Germany ?
I was thinking of contacting the Finanzamt and instructing them to direct all correspondence directly to me and forget H.


My German is limited but easy to get someone to make the contact.

[SalsaFever]

Is there an official / established route to cancel an accountant in Germany ?
I was thinking of contacting the Finanzamt and instructing them to direct all correspondence directly to me and forget H.

It's probably wise idea to dis-engage with Mr.H, but it's better to engaged with an tax attorney, since most self-reports are later denied by f-amt on grounds of lack of proof or false report.

Usually f-amt never satisfied by the amounts you declare and they seek orginal amounts paid by the end client + potential lost VAT.

Going back to original question, f-amt always have the address you provided when you were doing your 'abmeldung' (de-registration) on the rathaus.

So the all correspondance will be sent there.

[AndyCapp]

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.

Basically those nice Germans can tell any other EU tax authority that they are recovering a debt from you and they state the amount. No proof or reason must be given. Now your home tax authority is REQUIRED to recover the debt on behalf of the Germans and pass the recovered funds back to Germany.

I had a pleasant chat with the woman from my home tax authority and she said they do see these case through ....

So if any of you thought you were safe once out of Germany, think again.

Also, I have a very good German friend of mine who's a Lawyer - though
not in tax affairs. He put me in touch with a tax lawyer friend of his.

I have been told.
1. Do not ever set foot on German soil - there may be an arrest warrant
2. The German tax office act with impunity
3. Mr H the Steurberator is as bent as a nine bob note
4. Most, if not all agencies with a presence in Germany have passed all the
details of who earned what to the tax offices
5. They are not interested in doing deals - it's blood or nothing.

PS. Anybody who thought they'd be clever and transfer assets back in their home countries to spouces etc, think again. The courts can - and do - unwind such transactions. This is a simple task for your home country tax authority.

Getting info on MARD is not that simple. It's something that's been around for a while but was given much extra powers in 2009.

[Edelweiss]

1. Do not ever set foot on German soil - there may be an arrest warrant
2. The German tax office act with impunity
3. Mr H the Steurberator is as bent as a nine bob note
4. Most, if not all agencies with a presence in Germany have passed all the
details of who earned what to the tax offices
5. They are not interested in doing deals - it's blood or nothing.

I'm think only cases with a high severity would be arrested. I was told this is measured by days in jail and over 90 days becomes severe. I don't know at what point that happens? BB might know... What I've noticed is that Germany is not holding the CC's accountable in the chain of corruption, when every other country would. After all it's a Nationalist Socialist country by nature, look after the interests of the Fatherland and it's people.

[BlasterBates]

I'm think only cases with a high severity would be arrested. I was told this is measured by days in jail and over 90 days becomes severe. I don't know at what point that happens? BB might know... What I've noticed is that Germany is not holding the CC's accountable in the chain of corruption, when every other country would. After all it's a Nationalist Socialist country by nature, look after the interests of the Fatherland and it's people.

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.

[actonbabie]

Entrapment

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