Tax Evasion – Consequences
If the tax office discovers and can prove tax evasion, a conviction could result in up to 10 years in prison in the worst case. For minor offenses up to €50,000 in evaded taxes, only conditions or fines are imposed. From €50,000 to €100,000 in evaded taxes, a prison sentence is imposed, which can be […]
Tax returns – Which must be submitted by partnerships?
In the case of partnerships such as a GbR, a KG or a OHG, the results attributable to each individual partner are determined as part of the uniform and separate profit assessment declaration. Trade tax is only payable if a trade is operated in Germany. Tax advice also includes the correct tax treatment of the […]
Tax returns – Which have to be submitted by corporations?
VAT return, corporate income tax return and trade tax return each year Legal entities such as AGs, GmbHs and UGs must submit a VAT return, a corporation tax return and a trade tax return for each financial year. Your turnover and the input tax claimed must be declared for each calendar year in the annual […]
Tax returns – Which have to be submitted by freelancers and sole traders?
Freelancers and sole traders – income tax, VAT and trade tax The income of sole traders and freelancers is recorded in the income tax return. As a rule, profits are shown as the difference between income and expenditure in a cash flow statement. The individual income and expenses must be determined in the correct amount […]
Tax and commercial balance sheets – Significant differences
The main differences between the commercial and tax balance sheets relate to the following items: Depreciation and amortization Goodwill Valuation simplification method for inventories Future price and cost increases in the calculation of provisions Pension provisions Provisions for onerous contracts Intangible assets in fixed assets. Do you need advice on this? Here you can find […]
Discount credit
How expensive is a discount credit? A supplier offers you to pay an invoice in full within 30 days or within 10 days with a 2% discount. Your bank charges 10% interest p.a. on overdrafts and 0% p.a. on current account balances. Is it cheaper to pay the invoice later or within a week with […]
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 […]
Black money: Why is the risk of being found particularly high now?
So-called tax havens are facing great political pressure. As a result, more and more of them are abandoning their banking secrecy or no longer accepting black money in the first place. Exchanging information with other financial administrations is now often a priority. Corrupt bank employees burn bank customers’ data onto data carriers and sell them […]
Travel expenses – Why should a certified tax consultancy company check them?
Why do you need a tax consultant to check your travel expenses? You or your designated line managers are best placed to check the accuracy and content of your employees’ travel expense reports. On request, we can relieve you of some of the work and take over the arithmetical check of the submitted statements and […]
Branch office vs. Company
We are often asked which is better: a branch office or a limited company. Two facts are usually misjudged: Many believe that the effort and costs involved in setting up and managing a branch office are much lower than for a subsidiary. Others believe that they can do business or make extensive preparations in Germany […]
