Reporting obligations
Simple. Good. Compliant.

The acquisition of a shareholding abroad (> 10%/> EUR 150 thousand) has always been subject to reporting. Since 2018, it is also reportable if taxpayers, possibly together with others, can exercise decisive influence on companies in the third country.

The reporting obligation is a consequence of the Panama Papers scandal and is intended to detect offshore accounts managed via fiduciary structures. The scope of application is broader than the inconspicuous wording of the law suggests at first glance.

New: Since 1.7.2020, both companies and their advisors have to report legal tax arrangements with reference to foreign countries. This marks a low point in the rule-of-law tax procedure, because lawyers and tax advisors are degraded to stooges of the state.

  • Our focus: to protect you from the drastic sanctions of reporting violations.
  • Your advantage: You can sleep peacefully.

Reporting obligations for foreign engagements

§§ Sections 138 et seq. AO regulate reporting obligations that also affect the foreign engagement of domestic taxpayers.

Meldepflichten Compliance HLB Schumacher

 

Reporting obligations for fiduciary arrangements (Panama Papers)

  • § Section 138 II AO regulates reporting obligations for foreign offshore accounts held via trust structures and the like. Keyword: Panama Papers
  • § Section 138 II 1 No. 4, III AO: Third country offence:
    • (2)¹ Taxpayers [...] shall disclose:
    • 4. the fact that they, alone or together with related persons within the meaning of section 1(2) of the Foreign Tax Act, may for the first time directly or indirectly exercise a controlling or determining influence over the corporate, financial or business affairs of a third country company; [...].
    • (3) A third-country company is a partnership, corporation, association of persons or estate with its seat or management in states or territories which are not members of the European Union or the European Free Trade Association.

Legal consequences for a third-country company

Meldepflichten Treuhandgestaltungen HLB Schumacher

Legal consequences of breach of duty

Meldepflichten Panama Papers HLB Schumacher

§§ Sections 138 d et seq. of the German Fiscal Code (AO) regulate reporting obligations for legal arrangements with a foreign connection and certain hallmarks. Both the taxpayer and the tax advisor/tax lawyer (so-called intermediary) are obliged to report.

§ Section 138d para. 1 no. 3 lit. a) AO => conditional hallmarks within the meaning of section 138e para. 1 AO

Meldepflichten legale Steuergestaltung

§ 138d para. 1 no. 3 lit. b) AO => unconditional hallmarks within the meaning of § 138e para. 2 AO

Meldepflichten legale Steuergestaltung

Your contact person:

Prof. Dr. Christian Jahndorf International tax law

Prof. Dr. Christian Jahndorf

attorney, extraordinary professor Universität Münster (Münster)

Tel.: +49 (0) 2 51/28 08-153

Write E-Mail

Vita

Prof. Dr. iur. Till Zech, LL.M.

Attorney at Law (NY), tax consultant, of counsel Münster

Tel.: +49 (0) 2 51/28 08-0

Write E-Mail

Vita

Master of Science

Dorothee Maasmann

Tax consultant Münster

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