The StUmgehBekG passed the Bundestag on 27 April 2017. A vote in the Bundesrat is expected at the beginning of June. The law is already going to this vote with amendments by the Finance Committee compared to the government draft. It is therefore expected to be approved by the Bundesrat.
The law was enacted in response to the so-called Panama Papers and contains the following core provisions in particular:
- Fiscal banking secrecy is largely lifted.
- The automatic account retrieval procedure for tax purposes will be extended. Collective requests for information from the tax authorities to banks have already been possible on the basis of case law. They will now be standardised.
- A newly extended obligation to report shareholdings in third-country companies has been created. Indirect shareholdings and sales transactions are also covered. Indirect control of the company is sufficient for a notification obligation. If such influence is exercised, this also leads to a new 10-year retention obligation for the controlling taxpayers. This means that a tax audit of these taxpayers is then also permitted without special justification.
- Financial institutions must notify the tax authorities of such business relationships with third-country companies that they have brokered. A breach of this obligation may result in a fine and liability for any tax losses incurred as a result.
- Continued tax evasion using a third-country company is to be penalised more severely in future as particularly serious tax evasion. The limitation period for tax evasion is to be extended from 5 to 10 years.
We will keep you informed about the progress of the legislative process.
