Ask a tax advisor on the topic of Income tax return

Information about denying livelihood

October 19, 2010 | 20,00 EUR | answered by Steuerbera Georg Stahn

The tax office is requesting from us a statement for 2009, stating from which sources we cover our cost of living. In our 2009 income tax return, we did not declare any income as there were no earnings. However, due to a business operated by the wife until April 13, 2009, we were obligated to submit the tax return.

It is important to note that since 2009 we have been living abroad and paying taxes on our income there, therefore we did not declare these foreign earnings in the German income tax return. We still maintain a German residence and bank account.

Do we need to respond to the tax office's inquiry, and if so, do we need to declare these foreign earnings, which are already properly taxed abroad? We can prove that we have no expenses in Germany (living with parents, no car, no telephone connection, no mobile phone, etc.) as we have bank statements, so do we need to provide any further proof?

How should our response to the tax office be legally correct?

Steuerbera Georg Stahn

Hello,

In any case, you must provide an answer to the tax office.
When it comes to taxation, it depends on whether there is a so-called "double taxation agreement" with the respective country.
In this case, the German state may have a progression clause.
To do this, it may be sufficient to submit a copy of the foreign state's tax assessment notice.

I hope this answers your questions and I am of course available for further questions at:

Tel. No. 02161/67673
Mobile No. 0172/2914429
Fax No. 02161/672360
Email georgstahn@t-online.de

Best regards,

Georg Stahn