German resident: moving away but family stays

[Marzio]

in practice, you might end up fighting with the tax authorities about this specific part of the tax law

I don't know what the fight would be about because in his case:
- he will move to Italy
- form an Italian company
- manage the company from Italy

it's pretty clear that business revenue is going to be taxed exclusively in Italy.

 

[JohnLocke]

Yes, you are probably right, but I don't believe that the German tax authorities will accept this without scrutiny. I haven't had this situation with the German authorities, but I have experienced it with another EU country, and I ended up having to pay.

At a minimum, I would get it cleared with a German accountant and have them provide you with written confirmation that what you intend to do will work for the German tax authorities. This way, you can always hold them accountable through their liability insurance if things go wrong.

 

[Marzio]

I have experienced it with another EU country, and I ended up having to pay.

Whoa, was the situation similar? Which country? Another EU tax hell most likely

 

[JohnLocke]

Whoa, was the situation similar? Which country? Another EU tax hell most likely

No secret after all I have posted here. Denmark of course

 

[Marzio]

No secret after all I have posted here. Denmark of course

I probably missed that post/thread

 

[paterke]

It sounds really good when you read it in the tax regulations, but in practice, you might end up fighting with the tax authorities about this specific part of the tax law. If you're up for it, then go for it, and tell them that you read it in the tax rules they published and that you will adhere to them. But don't be surprised if you first have to pay a lot in taxes plus a fine, and then find a lawyer (whom you also have to pay) who might, or might not, be able to get back the money you paid but shouldn't have.

It's a battle like no other and you're asking for trouble. It sounds fruitfully smart when you read it, but in practice, it's different.

Of course, there is always a 50% chance that no one notices or says anything and you get away with it.

I just want to point out that tax authorities are more aggressive and inventive than ever before.

Absolutely. I personally know someone who spent almost 2 years in jail for tax fraud. I'm playing by the book (even though, every day I regret moving to Germany). Now I'm in a situation so that I need to move for some time to Italy and I'm trying to figure out the best way to deal with the situation, from a fiscal point of view.

Really, really appreciating your help and support.

Yes, you are probably right, but I don't believe that the German tax authorities will accept this without scrutiny. I haven't had this situation with the German authorities, but I have experienced it with another EU country, and I ended up having to pay.

At a minimum, I would get it cleared with a German accountant and have them provide you with written confirmation that what you intend to do will work for the German tax authorities. This way, you can always hold them accountable through their liability insurance if things go wrong.

Actually, it should be possible to get a binding confirmation from the Finanzamt itself. I do not remember the exact term in German, but it should be possible to ask these type of questions and get a binding reply (or so I was told by another tax consultant some time ago).

 

[daniels27]

Yes, I would recommend getting a binding tax ruling, called Verbindliche Auskunft:

Verbindliche Auskünfte

Informationen für Meldebehörden

www.bzst.de

It is not free, you can see the fees here

§ 34 GKG - Einzelnorm

Anlage 2 GKG - Einzelnorm

You will have peace of mind as long as you adhere to what you described in the request.