Combating tax evasion – German law with Identification Obligations – S+P

Combating tax evasion – German law with Identification Obligations
New Identification Obligations in Germany – Legislators have passed the Tax Avoidance Act on 23.06.2017 as part of the publication of the “Panama Papers”.
The new identification requirements apply both to new accounts and to stock accounts. In the case of new accounts opened from 1 January 2018, the German tax identification number (tax ID) must be established and recorded in accordance with § 154 (2a) to (2d) AO in the legitimacy check in addition to the data already to be recorded for natural persons.
In addition to the account holder, the following data must also be ascertained and recorded by the authorized persons and the beneficial owners:
Name, place of birth, date of birth, nationality, address and German tax ID
For account holders who are not part of the circle of natural persons, the tax identification number is replaced by the economic identification number (Wirtschafts-ID) according to § 139c AO.
 
Combating tax evasion - German law with Identification Obligations
 

Combating tax evasion – German law with Identification Obligations – Scope of the Extended Legitimation Check:

The scheme applies not only to deposit accounts but also to credit accounts. Exceptions are, however, loans up to and including 12,000 euros to finance private consumer goods (consumer credit).
If the contracting parties have not provided the necessary information, the automated query procedure must be used by the Federal Central Office for Tax BZSt to determine the tax ID by the end of the third month following the opening of the account.
If the tax ID can not be determined in individual cases or if other data to be collected, for example, in the case of a legal person, the tax number can not be ascertained due to a lack of cooperation of the contracting party, this must be recorded in the account.
The account IDs that already exist on January 1, 2018 also require the tax ID to be included in the customer master data. If the company already knows the tax ID, because the customer has submitted an exemption order with tax ID or the company has already retrieved the tax ID from the tax center to determine the church tax characteristic, this information can be used.
In practice, the data must be collected for the account holder, the authorized persons and the beneficial owner.
 

Beneficial owners – Combating tax evasion – German law with Identification Obligations – S+P

Especially with the beneficial owners, the data may still be incomplete due to the rather low requirements of the Money Laundering Act in the past. The data for the still existing accounts are also up to 31 December 2019 also event-related, i.e. in the context of the usual updating measures of customer data to be actualized.
If the company has not yet determined a tax ID by that date, it must use the electronic query system of the German tax authorities by 30 June 2020 to determine it.

Combating tax evasion - German law with Identification Obligations

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