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Terrified tax dodgers turning themselves in

The number of tax dodgers turning themselves in has reportedly risen dramatically in recent days, following the German government’s decision to purchase stolen bank data on secret Swiss accounts.

Terrified tax dodgers turning themselves in
Photo: DPA

Business daily the Financial Times Deutschland surveyed the country’s 16 states, which reported that the estimated back tax revenues would reach into the hundreds of millions of euros.

In the southern state of Bavaria alone, some 291 repentant tax dodgers have contacted authorities over the last week – up significantly from fewer than 20 the week before, the paper said.

Meanwhile in the port city of Hamburg the number of those trying to avoid investigation rose from 10 to 88. Fiscal authorities there told the paper they expect unpaid taxes from these cases to reach €20 million.

Authorities in the eastern state of Saxony told the paper they had fielded 174 cases in connection with the purchase of the account data, and expect €11.3 million in recovered tax revenue so far.

The state of Hesse reported 113 cases, Berlin 112, and the state of Schleswig-Holstein 36, the paper said. North Rhine-Westphalia and Baden-Württemberg plan to release their numbers during the coming week.

Meanwhile Rolf Schwedhelm, the lawyer of convicted tax dodger and former Deutsche Post head Klaus Zumwinkel, reported his firm had already advised more than 100 people on turning themselves in. Some clients had reported hiding sums in the double-digit millions.

In early February, Berlin said it would pay for data on some 1,500 suspected tax dodgers with funds stashed in Swiss accounts, dismissing criticism aside that the allegedly stolen material would not stand up in court.

Initially experts said the informant’s information would lead to some €100 million in recovered tax money for the country, but actual sums are now estimated at upwards of €400 million, reportedly located mainly at the Credit Suisse bank.

Government sources have said that the situation was the largest tax evasion discovery in German history.

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TRAVEL NEWS

What we know so far about Berlin’s follow-up to the €9 ticket

After weeks of debate, Berlin has settled on a new budget ticket to replace the €9 ticket for a limited time. Here's what know about the travel deal so far.

What we know so far about Berlin's follow-up to the €9 ticket

So Berlin’s getting a new €9 ticket? Cool!

Kind of. Last Thursday, the Berlin Senate agreed to implement a €29 monthly ticket from October 1st until December 31st this year. 

It’s designed to bridge the gap between the end of the €9 ticket deal and the introduction of a new national transport deal that’s due to come into force by January 2023.

The Senate still hasn’t fleshed out the details in a written decision yet, so some aspects of the ticket aren’t clear, but we do know a few things about how it’ll work. For €29 a month, people can get unlimited travel on all modes of public transport in Berlin transport zones A and B. That means buses, trains and trams are all covered – but things like taxis aren’t. 

Wait – just zones A and B. Why’s that?

One of the sticking points in planning the new ticket was the fact that neighbouring state Brandenburg was reluctant to support the idea. Franziska Giffey (SPD), the governing mayor of Berlin, had annoyed her neighbours and surprised her own coalition partners by suddenly pitching the idea at the end of August – shortly before the €9 ticket was due to expire.

At the time, the disgruntled Brandenburg state premier Dietmar Woidke (SPD) complained about the lack of advance notice for a proper debate. He had previously ruled out a successor to the €9 ticket in the state. Meanwhile, the CDU – who are part of the governing coalition in Brandenburg – slammed the idea for a new cheap ticket as a “waste of money” and an attempt to “buy votes” for the SPD.

The blockade meant that plans for a Berlin-Brandenburg ticket run by transport operator VBB had to be scrapped, and the monthly ticket has instead been restricted to the two transport zones solely operated by Berlin’s BVG. Since zone C stretches into Brandenburg, Berlin couldn’t include this zone in the ticket unilaterally. 

Berlin transport zones explained

Source: S-Bahn Berlin

The good news is that zones A and B cover everything within the city’s borders, taking you as far as Spandau in the west and Grunau in the southeast. So unless you plan regular trips out to the Brandenburg, you should be fine.

However, keep in mind that the Berlin-Brandenburg BER airport is in zone C, so you’ll need an ‘add-on’ ticket to travel to and from there. It’s also not great for the many people who live in Potsdam in Brandenburg and commute into Berlin regularly. 

READ ALSO: Berlin gets green light to launch €29 transport ticket

How can people get hold of it? 

Unlike the €9 ticket, you won’t be able to buy it at stations on a monthly basis. Instead, the €29 ticket is only for people who take out a monthly ‘Abo’ (subscription) for zones A and B. If you’ve already got a monthly subscription, the lower price will be deducted automatically, while yearly Abo-holders will likely get a refund. 

You can take out a monthly subscription on the BVG website here – though, at the time of writing, the price of the ticket hadn’t been updated yet. According to Giffey, people will be able to terminate their subscription at the end of December without facing a penalty. 

What types of ‘Abos’ are eligible for the deal? 

According to Berlin transport operator BVG, people with the following subscriptions are set to benefit from the reduced price from October to December: 

  • VBB-Umweltkarten with monthly and annual direct debit
  • 10 o’clock tickets with monthly and yearly direct debit
  • VBB-Firmentickets with monthly and yearly direct debit 
  • Trainee subscriptions with monthly direct debit

People who already have reduced-price subscriptions, such as over-65s and benefits claimants, aren’t set to see any further reductions. That’s because many of these subscriptions already work out at under €29 per month for zones A and B. 

Passengers exit an U-Bahn train in Berlin

Passengers exit an U-Bahn train at Zoologischer Garten. Photo: picture alliance/dpa | Jörg Carstensen

Can students with a Semesterticket get it as well?

That’s one of the things that still needs to be clarified. It’s possible that universities will choose to refund part of the Semesterticket price like they did with the €9 ticket. The Local has contacted BVG for more information. 

Can I take my bike/dog/significant other along for the ride? 

Once again, this doesn’t appear to have been ironed out yet – but we can assume that the usual rules of your monthly or yearly subscription will apply. So, as with the €9 ticket, if your bike is included in your subscription, you can continue to take it with you. If not, you’ll probably have to pay for a bike ticket.

In most cases, monthly BVG subscriptions allow you to take one dog with you for free, and also bring one adult and up to three children (under 14) with you on the train on evenings and weekends. These rules are likely to stay the same, but we’ll update you as soon as we know more. 

How much is this all going to cost?

According to regional radio station RBB24, around €105 million is set to be put aside in order to subsidise the temporary ticket. However, this still needs to be formalised in a supplementary budget and given the green light in the Senate. 

An S-Bahn train leaves Grünewald station

An S-Bahn train leaves Grünewald station. Photo: picture alliance/dpa | Christophe Gateau

OK. And what happens after the €29 ticket?

That’s the million – or, rather, billion – euro question right now. In its latest package of inflation relief measures, the federal government said it would be making €1.5 billion available for a follow-up to the €9 ticket.

The ticket is set to be introduced by January 2023 and will rely on Germany’s 16 states matching or exceeding the federal government’s €1.5 billion cash injection. So far, it looks set to be a monthly ticket that can be used on public transport nationally, with the price set somewhere between €49 and €69.

However, the Greens continue to push for a two-tier model that would give passengers the option of buying either a regional or national ticket. Under their proposals, the regional tickets would cost €29 and the national tickets would cost €69.

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