Question:
German agreement to tax undisclosed Swiss bank accounts
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Subject to executive and legislative sign off, the Swiss and German Governments have agreed on a deal to impose tax on undisclosed Swiss bank accounts held by Germans. A similar deal between Switzerland and the UK is pending.
The agreement provides:
+ Existing undisclosed bank account funds will be taxed in Switzerland with a withholding tax between 19 and 34 percent (depending on how long the funds have been hidden and the rate of capital gain);
+ The final withholding tax on future investment income and capital gains will be matched against the German flat-rate withholding tax of 26.375%;
+ After withholding tax is paid there will be no further tax obligation on the Swizz bank account earnings in Germany;
+ German authorities can submit requests for information from the Swiss authorities but the number is limited to 750 to 999 requests for a two year period;
+ Fishing expeditions will not be allowed and there must be a plausible reason for the information request;
+ Swiss banks will pay a guarantee of 2 billion Swiss francs which will be offset against withholding tax payments and refunded to the banks as it is offset;
+ Swiss banks will preserve most client confidentiality;
+ There will be no automatic exchange of information;
+ Germany has agreed not to take legal action against employees of Swiss banks; and
+ Germany has agreed not to buy anymore stolen bank data.
WTB 1319
