StartCriminal tax lawInternational Exchange of InformationAutomatic Exchange of Information

Automatic Exchange of Information

The German Tax Authority has no shortage of information on foreign income. LHP Attorneys inform and advise on the automatic exchange of information

The automatic exchange of information is a particularly effective tool used by the Tax Authority to procure information. The Tax Authority does not have to request the respective individual information from a foreign country but rather automatically receives batches of information annually. This does not yet include all types of income. The significance of automatic exchange of information is however increasing constantly. Because the taxpayer only gains awareness of a report in hindsight, it may already be too late to submit a voluntary self-disclosure. This should be discussed on a case-by-case basis. The new legal situation and any possible estoppels should be considered. A discovery of the offence gives rise to an estoppel for a voluntary self-disclosure.

The automatic exchange of information is a particularly effective tool used by the Tax Authority to gain information. The Tax Authority does not have to request the respective individual information from a foreign country but rather automatically receives batches of information annually. This does not yet include all types of income. The significance of automatic exchange of information is however increasing constantly. Because the taxpayer only learns of the report in hindsight, it may already be too late to submit a voluntary self-disclosure. This should be discussed on a case-by-case basis. The new legal situation and any possible estoppels should be considered. A discovery of the offence may give rise to an estoppel.

Facts and information on the automatic exchange of information

The automatic exchange of information has been in place within the EU since 2005. LHP Attorneys inform about the significance, the scope of affected persons and the history of automatic exchange of information under the 2003 EU-Directive.

What is automatic exchange of information?

Who is affected by the automatic exchange of information under the EU Savings Tax Directive?

When did the automatic exchange of information under the EU Sales Tax Directive become law?

Which data are subject to the automatic exchange of information under the EU Sales Tax Directive?

What’s ahead?

In the future, further information on capital income and sources of income will be reported, in addition to the interest income mentioned above. Significantly more countries will participate in the exchange of information.

The AIA-procedure is a current issue: This is a new international standard in respect of the automatic exchange of information on income from bank accounts and investment portfolios. In October 2014 and on the basis of the new OECD/G20-standard, more than 50 countries signed an undertaking to implement an extended automatic exchange of information on capital income. These extended regulations will, depending on the country, become law between 2016 and 2018. By now, the governments of approx. 90 countries and other entities under international law have given political undertakings to implement the AIA-standard.

LHP: Attorneys at Law, Tax Law Specialists, Tax Advisers PartmbB

Cologne

Theodor-Heuss-Ring 14, 50668 Cologne,
Telephone: +49 221 39 09 770

Zurich

Stockerstrasse 34, 8002 Zurich,
Telephone: +41 44 212 3535