German Prison !!

[darmstadt]

I have pointed the Finanzamt in the direction of this forum and hopefully they have read your post and you are now okay

Seriously though, I would speak to a German tax advisor and make sure you have all the paperwork ready and if you prove what you say is true then you're home and dry, if you can't then your new friend will be called Fritz and has reverse opening Lederhosen

[BlasterBates]

Just be aware it might not be a simple case, you should have registered your business. So they´re within their rights.

Get hold of a good lawyer in Germany to represent you, look on the internet. Don´t ignore it get someone to handle the investigation for you. Try and sort out where the tax should be paid, it´s not simply the 183 day rule, it is more complicated. If tax is paid in Germany get it refunded in the UK.

Once you have a lawyer in there with them then they should be able to clarify things. I doubt it will go to criminal proceedings and you don´t need to fear jail, unless you ignore it.

Good luck.

[Paddy]

I have pointed the Finanzamt in the direction of this forum and hopefully they have read your post and you are now okay

Seriously though, I would speak to a German tax advisor and make sure you have all the paperwork ready and if you prove what you say is true then you're home and dry, if you can't then your new friend will be called Fritz and has reverse opening Lederhosen

I have been in similar situations but not with the Germans. In the end all sorted by providing a written record. BTW: If you fly out on a Monday and back Friday, that counts as only three full days in Germany.

I would certainly invoice the German authorities 30e per letter.

[yakkers]

Just be aware it might not be a simple case, you should have registered your business. So they´re within their rights.

Get hold of a good lawyer in Germany to represent you, look on the internet. Don´t ignore it get someone to handle the investigation for you. Try and sort out where the tax should be paid, it´s not simply the 183 day rule, it is more complicated. If tax is paid in Germany get it refunded in the UK.

Once you have a lawyer in there with them then they should be able to clarify things. I doubt it will go to criminal proceedings and you don´t need to fear jail, unless you ignore it.

Good luck.

Ive checked and i actually worked 4 months and 1 week - i took some leave, and the place i worked at closed at xmas. I flew out friday and flew back either sunday or monday - depending on what flight i could get and stayed at a hotel during the week.
My problem is the cost. Im now a poor permy. The uk accountants i used for my uk ltd company are still going but will most probably charge me for this work. Then the cost of a German Accountant/Lawyer. Its been almost 6 years since i worked there.
Does anyone know what happens if i ignore this letter ? what powers they have ?
Maybe i could ask HMRC to refund the money and give it to the Germans ?

A lot of people have posted over the years with the same situation so im hoping some of them will post and let me know how they got on.

[BlasterBates]

Worst case you pay the double the tax on your 4 months which may well be fairly low and then a fine.

If you don´t go they will proceed and estimate your tax, and this is just going increase your potential bill.

My advice is don´t ignore it. Either go over there or get a lawyer. Tax evasion has a different time limit to civil tax disputes, so you may well find MARD comes after you even if it´s more than 5 years.

At the very least take legal advice in the UK. Your accountants for the Ltd at the time is a good starting point. You could even try phoning up the German tax office, and try and clarify it. I know someone who negotiated a 100 grand tax bill down to about 30, he basically said "I´m in the UK what are you going to do". If legal advice is in the UK they can´t do much then that would be a strong negoiating position.

...and it is only 4 months, you´ve just got to prove it to them once you´ve done that I can´t help feeling they´ll realise it´s a damp squib.

[Brussels Slumdog]

Working in Germany and 183 day rule

Just got home to find a letter from the German Tax people saying they had "initiated criminal proceedings involving a fiscal offence, summons for being questioned as an accused."

WTF !

They mention the year 2007. I did a short term contract in Munich - just under 5 months. I stayed at hotels during the week and flew home at the weekend. I had a UK Ltd company and paid money into that than therefore paid tax to the UK Government. I was advised at the time - by my agency :-( - that as my stay was less than 6 months, this was all ok.

They want me to go over the Germany - which considering what happened to the anti whaling captain - this is not gonna happen.

Anyone got any advice ?

If you believe that because you have not been in Germany for over 183 days you pay 0% tax in Germany and 0% Social Security then why are you worried?
I believe that you and your LTD company were liable for German taxes from the first day to the last day of your contract and the fact that you flew home is irrelevant as they don't count resident days like the UK. The 183 rule relates to whether you have to declare your WORLD WIDE income which if you stayed for only 5 months doesn't apply to you.
The Lawyer representing the German Tax office will argue that you have 5 months of earning which relates to German tax

[Ulrich@Fuierer]

German tax office probably made a tax inspection at your client, found your invoices and crosschecked if this turnover was declared as taxable income in Germany.
I am accountant in Germany (Steuerberater) and have many UK contractors as clients. If you like you can contact me on phone or email ww w.stb-fuierer.de - Ulrich Fuierer: Startseite and explain the details to me.
I would give you a free first analysis of your case.

Mod note:
As this is unusual I'll let this through. Welcome to CUK Herr Fuierer . If you wish to stay here please read the T&Cs of this website and ask Admin to change you login to [email protected]

[captainham]

Brussels Slumdog comments appear to match up with this site too re: German-sourced income: Germany : International Tax Consultants, Capital Consulting : Tax Guide : Tax Planning for contractors & freelancers

Edit: you can try calling this company for initial free advice too. I did something similar re: a Belgian contract and didn't try to push or sell anything to me.

[stevejohnson]

Don't be a chickentulip my friend. Research and send them a list showing major DE corps saving taxes. This info is easily obtainable on the internet. Send a letter explaining you will pay taxes there when the bigger corporations start doing the same. Mention you will complain to human right violations groups about how the law is applied differently to different people.

[cojak]

That was not helpful stevejohnson.

To the OP, speak to a German tax specialist as the other posters have said.