13. Nov 15

Time is running out for concealed untaxed income from capital – Voluntary disclosure on account of tax evasion

It is now almost impossible for untaxed income from capital in foreign accounts to remain concealed from the German exchequer. As long as the tax evasion has not yet been detected, a voluntary declaration can still be submitted.

GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London - www.grprainer.com/en conclude: While prominent tax evaders quickly fill headlines, German tax investigators are equally interested in tax dodgers who are not the focus of public attention. Investigators’ lists are likely to have been getting longer and longer over the past few months as the opportunities for German tax investigations to expand their operations abroad have risen enormously.

This is, on the one hand, due to the fact that countries are cooperating ever more closely to combat tax evasion across borders and create new legal possibilities as well as, on the other hand, the fact that international banks no longer wish to be associated with tax evasion and are pressing clients to clean up their accounts. The German tax authorities are already able to request information regarding the accounts of German citizens in Austria or Switzerland by means of a group inquiry. The possibilities available to investigators will once again be considerably enhanced when more than 50 countries begin automatically exchanging fiscal data among themselves from 2017. At the same time, the risk of tax evaders being detected will increase appreciably.

So long as the tax evasion has not yet been discovered by the authorities, it remains possible to submit a voluntary declaration that will lead to immunity. While time is of the essence, a voluntary declaration ought not to be submitted rashly, as a voluntary declaration, in addition to being submitted on time, needs to be complete and error-free for it to be capable of leading to immunity.

That is why a voluntary declaration should not be prepared alone or with the help of standard templates. There is a high risk of mistakes being made in the process and the voluntary declaration failing as a result of this. It is safer to employ the services of lawyers and tax advisors who are experienced in the field of tax law. They can assess the specific circumstances of each individual case and know which documents and information a voluntary declaration has to include for it to be able to lead to immunity.

For more informations: http://www.grprainer.com/en/legal-advice/tax-law/voluntary-disclosure.html

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