Self-disclosure – How does it work?
There is no form or formal requirement for voluntary disclosure. The written form is always preferable in order to preserve evidence. The taxpayer must declare all amounts that are not time-barred and have not yet been declared in full. Partial voluntary declarations (either not all years or not all tax types or not all) are invalid. If 5% or more of the income is not reported in the first declaration, the entire voluntary disclosure is null and void. The tax office must be in a position to issue tax assessments immediately on the basis of the voluntary disclosure that do not understate taxes. A voluntary disclosure is excluded if the tax office has already discovered the offense in whole or in part and the offender knew this or should have expected it. The voluntary disclosure is only exempt from prosecution if the evaded taxes, interest and any surcharges have been paid within the (short) deadline set by the tax office. Read here why black money is not worth it. If you would like to know how we can support you with your voluntary disclosure, click here.
Inheritance tax rates in Germany
Tax value up to and including Tax bracket I II III 75,000 euros 7 % 15 % 30 % 300,000 euros 11 % 20 % 30 % 600,000 euros 15 % 25 % 30 % 6,000,000 euros 19 % 30 % 30 % 13,000,000 euros 23 % 35 % 50 % 26,000,000 euros 27 % 40 % 50 % over 26,000,000 euros 30 % 43 % 50 % All information without guarantee! Source of the table: Inheritance Tax and Gift Tax Act (ErbStG), Section 19 Tax rates Is this topic relevant for you? Find out what we can do for you here. Click here for the personal allowances for inheritance and gift tax.
Bank interview
How do you prepare for a bank interview? Anyone who needs money can go to their bank and apply for a loan or have an overdraft facility set up on their current account. However, banks are hesitant when it comes to new customers and newly founded companies. The same applies if the company is not profitable or does not provide any meaningful documentation. It is important to prepare well for the bank interview. This includes the preparation of a business plan which, in addition to presenting the business idea with a detailed discussion of the sales and competitive situation, includes sales and cost planning, a profitability forecast and liquidity planning for several years. If the company has already been active on the market, the results of the past must be presented in an appealing manner. This includes presenting the annual financial statements in a meaningful way, e.g. in a report prepared by a tax consultant or auditor and accompanied by a certificate or audit opinion. The report should also contain further information such as a breakdown of the balance sheet and income statement accounts, a statement of changes in fixed assets and legal and tax circumstances. The most important factors for the bank are the equity ratio and the applicant’s ability to repay the loan with interest. Are you interested? Contact us, we look forward to advising you.
Tax field audit – What should I expect?
If the taxpayer does not comply with the obligations to provide information and cooperate, this usually leads to penalty payments, surcharges or the tax office’s power of assessment, which it usually exercises to the taxpayer’s disadvantage. In addition, the company’s own employees have to be assigned as contact persons, rooms have to be provided and the entire business process is disrupted. No one can say in advance how long the audit will take, whether specialist auditors will be called in or whether the audit will be interrupted and criminal tax proceedings initiated. We think that the training and mindset of most tax officials in Germany is very profiscal and that the career of a tax auditor also depends on how much additional tax he can collect. It is therefore not surprising that it is no longer just about fair taxation but above all about additional revenue. Some of the tax auditor’s questions are only understood in retrospect and you realize that the information you have freely given is suddenly turned around and interpreted in favour of the tax office. Are you looking for a tax consultant on this topic? Find out here how we can help you. You can find out how auditors proceed here.
