Germany’s Cabinet approved tougher penalties on voluntary tax disclosures on September 24, 2014.
As per the new rules, the maximum amount of outstanding tax that may be voluntarily disclosed without incurring a surcharge will be lowered to EUR25,000 (USD31,951), from EUR50,000.
Previously, voluntary disclosures were subject to a surcharge of five percent for amounts above EUR50,000. Under the proposals, amounts above EUR25,000 will now incur a ten percent fine.
The draft law needs Parliamentary approval. The new rules will be effective on January 1, 2015.
