Germany – Tightening of the rules on tax evasion stresses the importance of compliance in expat payroll |
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Background
From 3 May 2011, Germany has abolished the rule that penalties can be avoided where an unprompted voluntary declaration of non-compliance is made to the authorities. As a result, there is an increased risk during wage tax audits that employers responsible for the operation of expatriate payrolls may be accused of tax evasion where the reporting of income is incomplete.
Confirmation that issues which arose in prior audits have been resolved is recommended.
