Voluntary disclosure

Foreign assets

Have you not declared, or not fully declared, income or foreign assets to the tax authorities? If so, this is considered a criminal offence. The tax authorities are doing everything they can to track down undisclosed foreign assets. Treaties are being entered into (with Switzerland and Luxembourg, for example), which state that countries can exchange financial data with one another. Banking secrecy is the subject of debate in many countries.

Fines and criminal prosecution

What if the tax authorities find out that you have undisclosed assets and income? Tax assessments can then be issued, and high fines can also be imposed – up to 300%! You can also face criminal prosecution.

Better to prevent than to cure

It is a different situation altogether when you provide the tax authorities with full disclosure of your own accord. This is referred to as voluntary disclosure. You have to do this on time, however; surely before the tax authorities are on to you and start to question you, for example. You will receive an additional tax assessment for the tax owed plus interest, but you will not get a 300% fine or face criminal prosecution for inaccurate returns.

Speed counts

As of 1 July 2016, the fine is increased again to 120%. Plans are also being made to abolish the possibility for voluntary disclosure in 2018. 

Voluntary disclosure is a complex matter which has to be tackled carefully. The lawyers at Jaeger have a great deal of experience with this. We can calculate in advance the amount you will have to pay. After this, we arrange full coordination with the tax authorities for you. As a result, you can have free access to your assets again.

Questions about voluntary disclosure?

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