German Offshore Tax Investigation Hits Multiple Banks for Evasion (Golding & Golding)

German Offshore Tax Investigation Hits Multiple Banks for Evasion (Golding & Golding)

German Offshore Tax Investigation Hits Multiple Banks for Evasion

German Offshore Tax Investigation Hits Multiple Banks for Evasion: A common misconception people have, is the notion of out of sight, out of mind.

German Offshore Tax Investigation Hits Multiple Banks for Evasion

Unfortunately that is not how tax investigations work. Oftentimes, an international tax investigation is made “public,” intentionally – to watch how people react. The IRS wants to know who starts to move large sums of money, where they move it to, who falls off the face of the earth — and who lawyers up.

Panama Papers & Worldwide Offshore Tax Evasion

Even though the Panama Papers is yesterday’s news, and no longer “headline worthy” there are still multiple international investigations involving the Panama Papers taking place around the world.

Recently, several German banks were on the receiving end of an evasion probe stemming from the Panama Papers.

Tax Fraud and Evasion Probe for 11 German Banks

As provided by the Washington Post:

BERLIN — German authorities have carried out raids on eight individuals and 11 banks in an investigation of suspected tax evasion stemming from the leaked Panama Papers.


News agency dpa reported that Frankfurt prosecutors said Wednesday’s raids in various parts of Germany also targeted the offices of four tax advisers. The wealthy individuals are suspected of setting up letter-box companies via a former subsidiary of Deutsche Bank and evading taxes.


Prosecutors did not specify which banks were searched in the operation, which followed searches at Deutsche Bank in November. Deutsche Bank said the investigation was directed against private individuals, not against the company, that it is cooperating with prosecutors and wasn’t a target of the current raids.


How did They Get The Names?

Since Deutsche was hit back in November, and Deutsche is cooperating with authorities, it is safe to say Deutsche may have leaked the information.

U.S. Persons with German Accounts Need to Be Prepared

If you are a U.S. person, and you have invested money with or at any of these institutions, it is important that you realize your name may be leaked to the IRS.

U.S. and Germany have Multiple Treaties in Place

As provided by the U.S. & Germany Tax Treaty:

The Convention Between the United States of America And The Federal Republic of Germany For The Avoidance of Double Taxation And The Prevention of Fiscal Evasion With Respect To Taxes on Income And Capital And To Certain Other Taxes, Together With A Related Protocol, Signed At Bonn…

U.S. & Germany FATCA Agreement

As provided by the U.S. & Germany FATCA Agreement:

Whereas, the United States of America and the Federal Republic of Germany (hereinafter referred to as “the Contracting Parties”) have a longstanding and close relationship with respect to mutual assistance in tax matters and desire to conclude an agreement to improve international tax compliance, further building on that relationship

Golding & Golding, A PLC

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