. . Germany - the taxman cometh

[BlasterBates]

I've been reading this with a lot of personal interest. Ive been in touch with my agent of 5 years ago and now his recommended german tax lawyer. Fees for the two tax years I worked there will be EUR500 if there is no problems with my tax, or EUR 2000 if there are problems and they need resubmitting.



But he didnt mention this limitation on being persued (not in his interest) ... it is difficult to get good advice. Where did you find out this tidbit of information?

Actually they've just changed the law. As of 1st Jan 2009 they can go back 10 years. In the past they could always demand tax and interest up to a period of 10 years but they couldn't prosecute, they've now "harmonised" this. But if you are resubmitting, I suspect they'd go back 10years anyway.

[BlasterBates]

All quiet on the Western Front?

[Northerner]

Also wondering why it has gone quiet. Maybe difficult to discuss this subject on an open forum.

Actually they've just changed the law. As of 1st Jan 2009 they can go back 10 years.

By 10 years do you mean 10 years from today's date or 10 years from from the year of the last tax return filed? I assume the former.

[BlasterBates]

10 years from today.

They could always go 10 years back and demand tax but they couldn't prosecute. Just means now there would be additional penalties.

No-one goes to jail.

[Sportinglesbian]

Hi,

I've just started a contract in Germany and, having read this thread, it would appear I have got to go through a management company, and that I should declare all income.

Correct?

If so, could anyone recommend a good one please?

Thanks.

[tim123]

Hi,

I've just started a contract in Germany and, having read this thread, it would appear I have got to go through a management company,

No, for a limited period you can work through your UK Limited or you can be a Self employed "freelancer". Whether you are allowed to do this will depend upon the client, but it isn't a given that you have to insert a management company into the loop.

and that I should declare all income.

You should yes. It's for you to decide if will.

Correct?

If so, could anyone recommend a good one please?

Thanks.

No. If you aren't using their dodgy scheme, IMHO none of the management companies offer value for money.

tim

[Slumdog]

i agree with Tim. No point using mgt company at the moment.


client pays agency(agency takes cut), agency pays mgt co(mgt takes cut), mgt pays you. In my opinion the mgt co. have only transferred some funds into your account that were received from teh agent. nothing more for the 3-7% that they will charge. It is probably easier for the agency to recommend that you use a mgt co so that it reduces the hassle of money transfer for them especially when they have more than one contractor at the client site.

I used one, european based for the past 2 yrs and they dont seem to do much

[Sportinglesbian]

Thanks Tim,

Like everyone on this forum I image, I've been contracting for years all over the world and all I want to do is do the work and get paid.

I'll check my contract (it's been sent to my England address so I'll have to wait and see all the conditions, clauses etc.) and who or what I can work through and make an 'informed' decision.

Incidentally, does anyone have any experience of this guy:

http://www.toytowngermany.com/munich...e.html#contact

Thanks all.

[tim123]

Thanks Tim,

Like everyone on this forum I image, I've been contracting for years all over the world and all I want to do is do the work and get paid.

I'll check my contract (it's been sent to my England address so I'll have to wait and see all the conditions, clauses etc.) and who or what I can work through and make an 'informed' decision.

This is odd. If the agent want you to use a management co they will want to know which one before they issue the contract. This is because the MC that will be a named party to that contract.

tim

[Northerner]

I thought that the main point of this thread is that using a management company is not advisable at the moment as the German tax authorities are raiding/arresting contractors who use creative solutions.

Although using any other solution could also be deemed semi-legal:
http://www.contractoruk.com/overseas...structure.html

By the way anyone heard anything from the German accountant who sent out the mailshot at the beginning of December?