Low-functioning foreign companies – a controllable risk

Thus, there is a potential risk of criminal prosecution for tax evasion for the formal managing directors of the foreign company and also for any so-called "de facto managing directors" who actually perform the role of a managing director. In addition, there is also a risk for the foreign company itself of corporate fines and confiscation of its assets. Finally, the company may incur substantial unexpected back taxes and interest, for which the managing directors may be personally liable.

Against this background, we offer a compliance project specifically designed to address these risks:

Step 1: Risk analysis

On the basis of specific documents, interviews and other measures, the concrete facts of the case are determined, analyzed from a tax law perspective and evaluated. Concrete tax or sanction risks for the company and its (possibly also de facto) managing directors are then presented.

Step 2: Concrete recommendations for action

In order to minimize these risks, concrete recommendations for action are drawn up, based on the individual organizational structure and existing processes.

Step 3: Documentation precaution concept

Together with you, we develop a concept on how the correct handling according to tax law can also be proven to the tax authorities.

Project result

At the end of the project, with regard to the place of management in accordance with Section 10 of the Fiscal Code of Germany (AO), you will receive a written

• presentation of the facts
• evaluation from a tax law perspective
• individually tailored recommendations for action
• conceptual design for documentation precaution

so that questions and submission requests of the tax office can be answered quickly and completely in order to minimize the aforementioned risks.