If you announce your evaded incomes in a limited period voluntarily and you paid additionally a lump-sum tax on the evaded taxable income, you currently have the option to free themselves from prosecution, interests and penalties by filing a declaration of amnesty. This makes the new fiscal amnesty act possible. The amnesty is available from January 1, 1993 till March 31, 2005. By enacting this bill, the federal parliament created an offer which should be understood as a "bridge to tax honesty". This bridge could be used by citizens, who had taxable income in the past, but which do not paid the taxes or who kept it secret that they have illegally-earned money. The target group of the fiscal amnesty act are capital assets, which were invested abroad and which would like to transfer home to Germany on a legal way. Of course the offer is also designed for capital assets, which were invested in Germany and which bear interests, which are evaded taxable interests. 1
5 steps to find the way back to tax honesty
1. Filing out a declaration of amnesty during a certain time-limit
2. Paying a lump-sum
3. Free themselves from prosecution, interests and penalties
4. Because the would like to keep the citizen on the way of tax honesty, the fiscal gets more possibilities to check the activities of the citizen
5. Alternative for the fiscal amnesty act in Germany2
Inhaltsverzeichnis (Table of Contents)
- A Content of the fiscal amnesty act in Germany
- Filing out a declaration of amnesty
- Which income should be fill in your declaration of amnesty
- Which amount of income should be set in your declaration of amnesty
- Assessment basis for capital gains
- Assessment basis on gifts and inherited property
- Wealth tax
- Operational income- illegally -earned money
- Paying the lump-sum
- Time-frame for paying the lump-sum
- Amnesty for prosecution
- restrictive usage of acquired information
- Which persons can use the option to free themselves from prosecution?
- The possibilities to check the citizens by tax authorities
- Demand of account information by the tax offices
- Alternative:. Self announcement § 371/ 378 para. 3 fiscal code
- B Cause research for small success of the fiscal amnesty act Comparative example calculation:
- Accounting advantage of the fiscal amnesty act
- Practical disadvantages with the implementation of the fiscal amnesty act
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to explore the content of the fiscal amnesty act in Germany, its implementation, and its effectiveness. The paper investigates the act's purpose, how it functions in practice, and its impact on individual taxpayers and the overall tax system. The analysis delves into the practical advantages and disadvantages of utilizing the fiscal amnesty act compared to alternative options. Key themes explored in this paper include:- The process and requirements of filing a declaration of amnesty
- The calculation and payment of the lump-sum tax
- The consequences of using the fiscal amnesty act, including potential benefits and limitations
- The challenges of effectively implementing the act and the reasons for its limited success
- An examination of the alternatives available to taxpayers, such as self-announcement.
Zusammenfassung der Kapitel (Chapter Summaries)
- A Content of the fiscal amnesty act in Germany: This chapter comprehensively details the components of the fiscal amnesty act, explaining the declaration process, the required information to be included in the declaration, the calculation of the lump-sum tax, and the provisions for amnesty from prosecution. The target group of the act is outlined, focusing on individuals who evaded taxes on capital assets invested abroad or domestically. The key steps involved in utilizing the amnesty are highlighted, emphasizing the importance of filing within specific timeframes.
- B Cause research for small success of the fiscal amnesty act Comparative example calculation: This chapter delves into the reasons behind the limited success of the fiscal amnesty act, providing an analysis of the act's advantages and disadvantages for taxpayers. It compares the benefits of using the amnesty with potential downsides, such as practical challenges and difficulties in implementation.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this paper include fiscal amnesty, tax evasion, declaration of amnesty, lump-sum tax, prosecution, capital gains, self-announcement, tax honesty, and the effectiveness of tax legislation in Germany. This analysis examines the mechanics of the fiscal amnesty act, its practical application, and its impact on both individual taxpayers and the overall tax system.- Citation du texte
- Nadin Schäfer (Auteur), 2005, The Fiscal Amnesty Act and its effects, Munich, GRIN Verlag, https://www.grin.com/document/48201
