Anonymous regularisation Sample Clauses

Anonymous regularisation. How does anonymous regularisation work? The regularisation of previously untaxed assets will be effected by way of a one-off pay- ment. The amount will be calculated by the bank using a flat rate method and deducted from the client's assets. How will clients know how much they have to pay? The maximum nominal tax rate has been negotiated between Germany and Switzerland and is 34% of assets. However, this is different to the effective tax rate that clients will pay. Because of the calculation methodology (that considers factors such as statutory limita- tion), the rate for the majority of clients will probably be between 20% and 25% of total assets. The amount that has to be paid to regularise the existing assets will be calculated for each client according to the tax rates defined in the agreement. Clients will receive more de- tailed information from their client advisors at a later stage. Do clients have to do anything right now if they wish to make use of this option? Anonymous regularisation is expected to be the default option so for the moment there is no action required from bank clients as a result of the agreement. Xxxxx will contact clients to advise them of the next steps within a period of two months after the agreement enters into force. In all cases, clients remain responsible for their own tax affairs. When exactly will the flat rate payment for the past be deducted? Banks will deduct the amount owed from client accounts five months after the agreement enters into force (provisionally on 31 May 2013) and will provide clients with certification of the deduction. Clients will be able to appeal the certification. Will clients receive confirmation giving details about the payment of the one-off flat rate tax? Yes. This certification can be used as proof in any tax enquiry by the German tax authori- ties and will be recognised by the German authorities. What happens if there is insufficient cash in the account at the time the tax is de- ducted? If clients opt for the anonymous one-off flat rate tax, they must ensure that there is suffi- cient cash available at the time the tax is deducted. If there is insufficient cash for the full deduction of the tax, the bank will inform clients that their balance is insufficient and set a specific deadline by which to have the funds available. At the same time, the bank will ad- vise clients of the consequences of not having sufficient cash available by this deadline. If the necessary balance is not available...
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