People are scared off by the German Voluntary Disclosure Program

Since the start of the new year the voluntary disclosure program for German residents with black money in Switzerland reduced massively. What is the main reason for this surprising development.

The number of free and voluntary declarations by tax evaders with secret accounts in Switzerland and Liechtenstein decreased a lot compared to last year. This was reported by the agency „AWP“.

The tax inspectors only counted about 1’505 self-advertisements in the first six months of this year. According to the agency, this brought approx. about EUR 52 Million in revenues into the cash registers of the government.

Four times less Voluntary Disclosures then in 2014

Compared to last year, this is a sharp fall and can been seen as a future trend. At the same time last year, nearly 5,500 voluntary disclosures and about EUR 88 Million were noticed in payments in the same period. In 2014, overall, about 10’408 alleged tax evaders in the German state of Baden-Wuerttemberg alone reported themselves.

In 2013, after the famous and publicly known black money scandal involving FC Bayern President Uli Hoeness, the number of voluntary declarations of Germans with secret black money accounts in Switzerland in 2013 had reached a maximum. Every German with black money in Switzerland was scared that he would be next. Many of them voluntarily declared their funds and assets, held in Swiss banks, right away – The German Tax authorities named this wave of disclosures the „Hoeness effect„.

Stricter Conditions for Disclosure

The recession of 2015, however, has very little to do with the fact that no black money remains on Swiss bank accounts any longer. To the contrary. Tighter rules and conditions for the German Voluntary Disclosure Program seem to scare many tax evaders off. Since January 1, the rules for voluntary disclosure were significantly tightened in Germany. With these new rules, the famous `step` into the tax compliance has now become more expensive, difficult and dangerous. As a result, the black money problem also keeps on effecting Swiss banks – and with it the outflow of client money back to Germany.

Do you have black money or other non-tax compliant assets and funds in secret Swiss bank accounts? Do you fear that once you voluntarily disclosed all your black money to your local tax authorities they won’t stop looking for more undeclared funds? They won’t give up looking. They will come to your company and make a smooth operative and daily business impossible. Don’t hesitate if you have any questions. Call now! Enzo Caputo, former UBS bank lawyer and legal expert for Voluntary Disclosure Programs will answer all your questions. Together with his team of experts and professionals he will support you with tailor-made and expert advice.

Take your money out of the bank before the bank takes your money out of you!

www.swiss-banking-lawyers.com