Tax havens in focus: What companies need to know now
Tax authorities are increasingly targeting low-tax municipalities in Germany. Cities such as Monheim am Rhein, Grünwald, and Zossen have come under investigators' scrutiny due to their attractive trade tax rates.
Companies based there are increasingly suspected of only maintaining a mailbox address, while the actual management takes place elsewhere.
However, not every company that benefits from favorable tax rates operates a shell company.
The legal distinction is complex, and this is exactly where we at TaxPro come in.
YouTube Video: Tax investigators put pressure on German (!) tax havens
How tax investigations proceed – and why this is problematic
To uncover alleged tax violations, investigators use various methods:
On-site checks: Is the company headquarters actually being used or is there only a business address?
Movement profiles: Where is the management demonstrably located?
Call forwarding and mail forwarding: Where do calls and business mail really go?
Industry analysis: Can the company actually use the commercial premises as stated?
The crucial point: Not every company headquarters needs to be staffed continuously. Especially in times of remote work and digital business models, the traditional definition of a company headquarters no longer reflects economic reality. Tax law sets clear rules – but tax investigators often interpret them too narrowly.
Why companies should act now
If your business is registered in one of these municipalities (or plans to be), it could only be a matter of time before you become a target of investigators. But that doesn't mean you're defenseless. With TaxPro tax experts, you can
Challenge searches and seizures that are unlawful
Prevent unjustified tax claims and assessments
Ensure that tax investigations comply with the applicable legal framework
Make your company legally compliant before investigations begin
Learn more about your rights regarding tax havens: