What are the chances of getting caught?

[pamparana]

Pardon the very direct question.

Assuming one lives in Germany and has an old bank account in the UK, which still receives something like 5K every month due to services rendered and the money never leaves the account. What are the odds for the German authorities finding this out if one neglects to include this in the tax declaration?

 

[Sols]

100%, it's only a matter of time. They might already know about the account, but you just haven't been a priority yet due to the small amount.

 

[pamparana]

Thanks for that honest and direct reply. Damn this digitization

 

[CaptK]

100%, it's only a matter of time. They might already know about the account, but you just haven't been a priority yet due to the small amount.

What address does the bank have on file?
Do they have a German telephone number on file?

 

[Sols]

What address does the bank have on file?
Do they have a German telephone number on file?

I thought about that right after I submitted my reply. The risk goes down to a little bit if the bank doesn't have a German address, phone number, or tax ID on file. But eventually (1, 2, 3, 5, 10 years from now), the bank will likely ask for fresh KYC and may then end up reporting to Germany even retroactively. Logging in from a German IP address and/or device located in Germany can help trigger such a review before anything else comes up.

 

[pamparana]

So, the bank has no German information on file. Not even a phone number.

I do not plan to do this for long term. My situation is pretty bad due to divorce and other personal stuff and even if I could skimp on like 6 months, that would really help. After that, I plan to report everything (pretend I started working from middle/end of the year) and pay my dues.

 

[CaptK]

So, the bank has no German information on file. Not even a phone number.

I do not plan to do this for long term. My situation is pretty bad due to divorce and other personal stuff and even if I could skimp on like 6 months, that would really help. After that, I plan to report everything (pretend I started working from middle/end of the year) and pay my dues.

How long have you been out of the country for?
Bare in mind they will be doing new KYC checks for EU citizens who still have bank accounts in the UK.

I thought about that right after I submitted my reply. The risk goes down to a little bit if the bank doesn't have a German address, phone number, or tax ID on file. But eventually (1, 2, 3, 5, 10 years from now), the bank will likely ask for fresh KYC and may then end up reporting to Germany even retroactively. Logging in from a German IP address and/or device located in Germany can help trigger such a review before anything else comes up.

Always advisable to use a VPN when accessing the account online.

 

[Sols]

So, the bank has no German information on file. Not even a phone number.

I do not plan to do this for long term. My situation is pretty bad due to divorce and other personal stuff and even if I could skimp on like 6 months, that would really help. After that, I plan to report everything (pretend I started working from middle/end of the year) and pay my dues.

It comes down to the timing of the events in that case. If it's still relatively recent, the income may not necessarily qualify as having taken place under your German tax residence.

Are the funds received taxed in the UK? If so, a tax treaty will probably kick in and reduce your German tax burden (if any).

Always advisable to use a VPN when accessing the account online.

It can be a mixed blessing. While they work flawlessly in most cases, VPN detection is an increasingly common part of fraud prevention as more and more risk management applications have the feature. Being spotted logging in with a VPN isn't an immediate death knell, but it can be something that increases the risk profile of a transaction. Hopefully that isn't a big concern if the funds are just left on the account, though.

 

[Golden Fleece]

VPN detection is an increasingly common part of fraud prevention as more and more risk management applications have the feature.

In the U.S., many bank portals refuse to work with a VPN. I have complained, to no avail, stating that my use of a VPN helps protect the bank against fraud because it is far less likely for a hacker to intercept my data. But the banks do not care.

 

[pamparana]

I have been out for about 2 years, so it has been a while and it definitely qualifies for German taxes.
I am hoping if I can stay under the radar for 6 months and then go straight, it will go unnoticed.

 

[Sols]

I have been out for about 2 years, so it has been a while and it definitely qualifies for German taxes.
I am hoping if I can stay under the radar for 6 months and then go straight, it will go unnoticed.

Don't rock the boat and things might pan out. It's risky but your setup and for the amounts mentioned might never yield any investigation. The existence of your bank account is still likely to end up in Germany if/when your UK bank wants repeat KYC and you're required to tell them you live in Germany. But just having a bank account balance abroad isn't a taxable event. Information about the income earned while resident in Germany would also have to end up in Germany somehow, and that's less clear.

 

[JackAlabama]

Let me state the obvious.

You seem to make 5k offshore income. Just pack your bags and set up shop somewhere else.
With 5k/month you could even have an ok life in Emirates and a pretty decent life in many places where it is no issue.

 

[baitmine]

Let me state the obvious.

You seem to make 5k offshore income. Just pack your bags and set up shop somewhere else.
With 5k/month you could even have an ok life in Emirates and a pretty decent life in many places where it is no issue.

Not everyone is willing to relocate to reduce their tax burden. While doing so can improve your quality of life, it can also worsen it as you'll be forced to give up many of the things you currently take for granted (at least to an extent), such as friends and family, not to mention, familiarity.

 

[pamparana]

Let me state the obvious.

You seem to make 5k offshore income. Just pack your bags and set up shop somewhere else.
With 5k/month you could even have an ok life in Emirates and a pretty decent life in many places where it is no issue.

I have a kid in Germany who I want to be a good father to. Else, yes, I would have moved somewhere (simply to increase the distance to my psycho ex-wife).

 

[Cetme308win]

I have a kid in Germany who I want to be a good father to. Else, yes, I would have moved somewhere (simply to increase the distance to my psycho ex-wife).

such a fucked up situation.....Would be great if you can get his custody and moving offshore tax free lol