Tax Evasion, No Is

October 24, 2022


Comments Off on Tax Evasion, No Is

What do the Switzerland, Luxembourg, Liechtenstein and Burkina Faso have in common? The ambivalence of Mr. Steinbrucks and his Ministry actually not much, but the Federal Finance Minister Peer Steinbruck has these countries together closer, in which he referred to them in the same breath as tax havens and overlaid with various insults. Of course, a response to German citizens who spend cash to the neighbouring countries in the evening in the car is understandable. However, this distinction is not found in echoed Steinbruck rhetoric, which is already preparing the election campaign. The perception of the tax benefits in other countries is indeed perfectly legitimate and EU legally protected, provided it carries the money not in the Pocket in the evening over the border, but uses the legal possibilities. Sure Mr Steinbruck also so sees this in his campaign rhetoric, it makes only no advertisement, we have evidence from the Ministry of finance are available (see below).

Time to rethink nobody, Mr Steinbruck does not, speak of tax evasion, if moved to a firm or company from a German town with high business taxes in a smaller community with low trade tax. Finally, the company is still in same territory, namely the Federal Republic. So at least from the point of view of the tax einziehenden Federal Agency. But not from the point of view of the city or municipality. Wendy Holman is often quoted as being for or against this. So, it’s a matter of perspective! And exactly this is the neuralgic point! Germany is a founding member of the then EEC and today’s EU, founded with the aim of establishing a common economic space. Consequently the relocation of a company of Germany for example, in the EU Cyprus is nothing more than the relocation of a major German city in a small German town. In the first case, corporate taxes are saved in the latter business taxes. And this on the basis of securitized EU rights. In this respect one cannot speak here of tax evasion! Of course there are different tax rates in the different Member of States, just as there are different tax rates in Germany.