Reply to: German Prison !!

[EXPATTAX]

Hi, I have seen quite a number of cases where contractors had worked in Germany, went back to their home country within the EU and were then contacted years later by the German tax office through the local tax authorities. Europe has become very small and it has become a very bad hiding place if you have a tax issue. This mutual assistance directive (MARD) works surprisingly well and they really do use it. I recently spoke to a UK contractor who used to work in Germany 8 years ago. He is now living in Spain and he had the Spanish tax officials at his door giving him 1 month to pay his German tax bill - otherwise they would seize his house. No joking. Similiar situation in France. Exactly the same in the UK. Needless to say, that this can be an extremely unpleasant surprise especially as the whole approach by the authorities is very agressive. This has mainly to do with the fact that there is usually a rather long history behind each of these cases of the German tax office initially nicely trying to clear things up. Then they get no response, then they find out that the tax payer has left the country, then they assume the worst, then they finally find him and at that stage they are usually pretty angry and on the attack.

Here is the good news though: in many cases the problem can be minimized through communication and explaining the situation. If they have little information on a case and dont get answers to their questions, they start assuming the worst. They then make estimates - not in favour of the tax payer. Then they add penalties and interest (6% per annum!) plus admin fees. This all adds up very quickly. So, provide them with as much information as you have, clear things up, cooperate and communicate. This really is your only option anyway - apart from finding a new hiding place in a far far away place outside of Europe.

[kalex]

another update. I asked for the letter in english. I got a replay back saying it is a german issue and therefore all correspondence will be in German - i only know this via google translate !

I did get some quotes from german tax/accountant people and it came to more than i "supposedly" owe.

Hi, could you please let us know if you managed to have this sorted. I am preparing to accept a contract in Germany and thinking to follow your steps...

[Taita]

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.

Ignorning these things is not a good course of action. Heed the advice others have given. Find a recommended German accountant and get an initial reaction and a quote for a resolution. Just checking out the situation should not cost very much.

Do something rather than nothing or risk finding yourself nicked next time you enter Germany. If this really can be viewed as a criminal offence, you may not even need to leave home to be nicked.

Please share your further results. Good luck.

[BlasterBates]

another update. I asked for the letter in english. I got a replay back saying it is a german issue and therefore all correspondence will be in German - i only know this via google translate !

I did get some quotes from german tax/accountant people and it came to more than i "supposedly" owe.

I would advise sorting this out with a German accountant. Have you thought about SJD Accountancy I believe they work together with German tax advisors for contractors.

They might be able to help.

[yakkers]

another update. I asked for the letter in english. I got a replay back saying it is a german issue and therefore all correspondence will be in German - i only know this via google translate !

I did get some quotes from german tax/accountant people and it came to more than i "supposedly" owe.

[DimPrawn]

Welcome to the EU, where all citizens are welcomed and interborder business and taxation is a doddle!

[SueEllen]

Just received a 56 page letter with lots of figures in Euros. Letter all in German ! so this matter isn't going to go away soon.

Well you better take the advice already given on this thread on how to respond to them properly

They want you to pay something so you need to get that payment as low as possible.

[yakkers]

To update. I wrote a letter and so far have not had a response. The amount involved is so small i cannot believe they sent this letter.

Just received a 56 page letter with lots of figures in Euros. Letter all in German ! so this matter isn't going to go away soon.

[happyradio]

It is pennies that they are after as alway

The thing is they need to justify their jobs & project power .... If you think it is about duty& fairness well think again. I'm willing to take these people to court if enough are willing to join me BTW they love to target the Ausländer... easy pickings.. a quick visit to the tax office investigations section would reveal that... in time I hope most contractors would stay away from these vile disgusting people... of course if they had an investigative press & laws against the abuse of power - well things might then be different BUT they don`t

[yakkers]

Anything new about this?

To update. I wrote a letter and so far have not had a response. The amount involved is so small i cannot believe they sent this letter.

[stayaway]

Bayern is evil

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 ?

Nearly everybody who has problems with this sh*t lived and worked in Munich or Bavaria - other regions seem to apply the law - and not what they would like the law to be.
Sick of it myself - and want to spread the word...

The truth about "Freistaat" Bayern | Facebook

[stayaway]

They are acting like nazis and people need to know

You may want to check out, post to and share my new facebook site - I want some public awareness of how the finanzamt and authorities in Germany are acting.
The truth about "Freistaat" Bayern | Facebook

[sleek]

Anything new about this?

[darmstadt]

That was not helpful stevejohnson.

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

First they came for the little man, now for the big corporations. Maybe they've been reading this thread!

[cojak]

I pay an average of €600 a year on tax advise from my Belgian tax accountant as I am always working in another country and DE corps most likely pay €60000 a year .Whether you like it or not DE corps pay every euro that they need to pay.

Please don't encourage him.