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Housing market Tax tricks with Interest settlements

Status: 06/17/2021 10:42 a.m.

Financial investors speculate with billions on the German housing market, but hardly pay taxes – thanks to a legal trick. The federal government wanted to close this loophole. But loud monitor – Research won’t come of it.

By Lutz Polanz and Jan Schmitt, WDR

“Behind this house is an American company, the trail of the owners leads via Luxembourg to the Cayman Islands” , tells Coni Pfeiffer, activist and spokeswoman for the # 200Houses network. Tenants from Berlin have come together to defend themselves against the conversion of their apartments into expensive condominiums and the greed of financial corporations. It is similar with the other houses on the opposite side, explains Pfeiffer. Here the trail of investors leads to tax havens such as Gibraltar or the Virgin Islands. The Berlin real estate market has long since become an Eldorado for major investors who want to remain anonymous. The official owners are companies with names such as Magenta Properties S.à.rl or Berlin Project-1 Property III S.à.rl The names often conceal complex corporate structures with a whole chain of companies. In the end, they lead to well-known tax havens, for example in the Caribbean.

Interest trick to save taxes

The elaborate company structures apparently also serve to avoid paying taxes to the German tax authorities. A completely legal interest trick helps the companies: The parent companies lend money to their subsidiaries who own the houses and land in Germany. In return, they charge them high internal interest rates – much higher than they would otherwise have to pay at banks. The interest payments of the subsidiaries reduce the profit in Germany and thus the taxes that would have to be paid here.

“The profits go to countries in which no tax is levied on interest income”, explains Gerhard Schick, board member of “Citizens’ Movement Finanzwende”. “Thanks to these high interest payments, it is practically possible to push the income abroad, so that in Germany you can tell the tax office that we have actually not earned any money, but that the profit is generated abroad.”

Billions are being lost to the Treasury

“Every year the German state loses five to seven billion euros as a result of the interest rate trick”, adds Christoph Trautvetter from “Network tax justice”.

So far, the tax authorities have been able to do next to nothing about it. There is no corresponding legal regulation. Specialists have been calling for them for years, for example Manfred Naumann, an expert in international tax law and head of department in the Federal Ministry of Finance for many years: “I am frustrated that the legislature and the Federal Ministry of Finance are unable to find such a regulation”, said Naumann in an interview with the ARD -Magazine monitor . For him the state wears one “complicity” because financial resources run into the billions “flow untaxed”. Proposals for such a regulation have long been on the table. Accordingly, the interest rate would always be used as a benchmark at which a group can borrow money from the bank. Demanding higher interest rates internally would only be possible if the group can justify it well. That would be a kind of reversal of the burden of proof, which experts believe would prevent a large part of the tax damage.

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The Federal Ministry of Finance under Olaf Scholz (SPD) had proposed precisely such a new regulation in a draft law. But the CDU / CSU parliamentary group intervened and the corresponding passage was deleted from the draft. The Federal Council then made a new attempt to resume the regulation. But this was also thrown out at the instigation of the Union.

“Braking measures against money laundering, aggressive tax avoidance and tax evasion by the CDU / CSU has a long tradition”, criticizes Sven Giegold from the Greens in the European Parliament. However, he is also surprised that the SPD did not protest against it.

The Union faction wanted to get up monitor -Do not answer the request. The Federal Ministry of Finance, led by Scholz, is now apparently at a distance from its original approach. Corresponding changes “should ideally be coordinated internationally”, it says in a response from the ministry to a request from monitor .

Now the match ball lies with the Federal Council. He wants to decide at the end of June whether to call the mediation committee or wave the law through with the loophole

Expressing the impression with the diverse, rich and unique cuisine of Vietnam, many dishes have become brands in the world, Michelin hopes to cooperate with Vietnam National Administration of Tourism in the near future. put Vietnamese cuisine in Michelin’s culinary guide to bring Vietnamese cuisine closer to world friends. At an online meeting with the Vietnam National Administration of Tourism and the French Embassy in Vietnam on June 8, the Michelin representative proposed to promote Vietnamese cuisine on Michelin’s famous culinary handbook. Welcoming the idea of ​​cooperation on promoting Vietnamese cuisine in the Michelin culinary guide, Deputy Director General of the National Administration of Tourism Ha Van Sieu said that Vietnam’s tourism in recent years has grown strongly, in which Cuisine is one of the factors that help affirm the position of Vietnam tourism on the world tourist map. Vietnamese cuisine is very diverse with many delicious and unique dishes spread across three regions and very easy to enjoy. Deputy Director General Ha Van Sieu affirmed that the VNAT always welcomes ideas and plans to introduce Vietnamese culture and tourism, contributing to promoting Vietnam’s tourism to many tourists around the world. The Deputy Director General assigned the Tourism Market Department as the focal point to continue to exchange and hope that in the near future when the epidemic is controlled and international tourism reopens, the two sides will have conditions to meet and work. directly about the plan and the plan of promotion cooperation. Established in 1888, Michelin is a world famous French tire company. In 1900, the company released the Michelin Guide. At that time, the manual was just a map with a list of hotels and Michelin tire change locations along the way. Starting in 1920, the company stopped giving out free books and added restaurant listings to this guidebook. Next, Michelin recruited culinary appraisers working in secret to check the quality of the restaurant. Since 1930, there have been lists of Michelin-starred restaurants. Michelin says the evaluation categories are based on guidelines for the quality of the ingredients used; cooking techniques and taste; unique dishes based on the chef’s “cuisine taste”; quality service; and the consistency of quality between the times guests come to enjoy. Michelin star rating is divided into 3 categories: 1 star, 2 star and 3 star, of which 3 stars is the highest rating. The Michelin Culinary Guide has received a high response and appreciation from tourists and culinary experts, creating a reputation for the restaurant brand. Being awarded a Michelin star is considered an honor for every restaurant in the world. Currently, in addition to the culinary guidebook, Michelin has developed the Michelin Guide Worldwide application for visitors to easily access online.

Timmy TV channel interface on May 27. The Department of Information and Communications of Ho Chi Minh City has sanctioned and asked to close this channel before May 28. (Screenshots) On the afternoon of May 27, the Department of Information and Communications of Ho Chi Minh City issued a document to sanction the subject who established and provided the YouTube channel Timmy TV, forcing the channel to be closed before May 28. Mr. Nguyen Duc Tho, Chief Inspector of the Department of Information and Communications of Ho Chi Minh City, said that Timmy TV channel was administratively fined 15 million VND for the act of: Providing information on the network environment, affecting the public Children’s healthy findings and Information with superstitious content and horror, horror content. These two violations are sanctioned under Points b and c, Clause 1, Article 101, Decree 15/2020 stipulating penalties for administrative violations in the fields of post, telecommunications, radio frequencies, and technology. information and electronic transactions. Channels YouTube Timmy TV started on February 20, 2018, posted over 700 videos and had more than 772,000 subscribers. Timmy TV is under the management of Hero Media, a media company specializing in producing videos introducing games for children. As a YouTube channel aimed at child viewers, this channel regularly posts a lot of creepy, horror videos, even promoting superstition, superstition, not suitable for the people’s fine customs and traditions. race, adversely affecting the psycho-physiological development of children. Before this phenomenon, many parents have reported to the Child Protection Hotline 111. Department of Children (Ministry of Labor, Invalids and Social Affairs) has sent an official letter to the Information Security Department (Ministry of Information and Communications), Department of Cybersecurity and High-Tech Crime Prevention (Ministry of Public Security). check and take measures to block, remove, delete channels and handle according to regulations to protect children in cyberspace. Since the channel owner resides in Ho Chi Minh City, the case has been transferred to the Ho Chi Minh City Department of Information and Communications for handling.

Egyptian Prime Minister Mostafa Madbouly. Photo: al-Ghad Particularly for this year’s Eid al-Fitr holiday, the event that marks the end of the Muslim month of Ramadan, Egyptians will have a 5-day break from May 12 to 16, however, prayer activities during the This occasion is only held at churches without children accompanying them. In addition, beaches and parks are also closed during the holiday. The Egyptian Prime Minister added that the country is trying to provide the largest number of Covid-19 vaccines to the people. He revealed that Egypt will receive more large batches of vaccines this May and vaccine reception centers are also being expanded.

The image was taken inside a vaccination center located in the railway museum of Catalonia in Vilanova i La Geltru City, Spain. Persons receiving AstraZeneca’s Covid-19 vaccine rest at the follow-up area after vaccination. (Image: Getty Images) Medical staff giving flu vaccines to residents not participating in the community Covid-19 vaccination program established at the National Museum of Science and Technology of Leonardo Da Vinci in cooperation with the Leonardo Da Vinci Hospital in Milan, Italy. (Photo: EPA) Chairs in the post-vaccination monitoring room in the city of Naples, Italy, are placed at a guaranteed social distance. (Image: Getty Images) “Medical train” Akademik Fyodor Uglov in Kuytun village, Irkutsk region, Russia. The train is being used as a mobile diagnostic center, and staff on board are deploying Sputnik V vaccination to locals along the East Siberian Railway. (Photo: TASS) A Covid-19 vaccination clinic on the square of the SNCF station vaccination center in Nice City, France. (Photo: Shutterstock) The Robert Poirier Athletics Stadium in Rennes, Britany Province, France, has been transformed into the Pfizer / BioNTech Covid-19 vaccination center. (Image: Getty Images) Medical staff preparing to vaccinate at the Metropolitano Stadium in Madrid, Spain. (Photo: AP) Poland’s Wroclaw city prepares for a mass vaccination campaign at the city stadium. (Photo: Shutterstock) Aalborg Symphony Orchestra performs at an immunization center in Jutland, Denmark. (Photo: EPA) Residents sit in cars waiting for Covid-19 vaccinations at an immunization site at NRG Park complex, Houston City, Texas, USA. (Photo: AP) Cars move through traffic posts leading to the vaccination center inside Dodgers Stadium in Los Angeles, California, USA. To date, the state of nearly 40 million people has had nearly 19 million doses of Covid-19 vaccine, with nearly 6.9 million fully vaccinated. (Photo: AP) The line of vehicles waiting for the Covid-19 test at Dodger Stadium, Los Angeles City. The United States, the country most heavily affected by Covid-19, stressed that vaccination was the way to bring the country out of the pandemic. (Photo: AP) Photographed while waiting in line for AstraZeneca’s Covid-19 vaccination at the Olympic Stadium in Montreal, Canada. (Photo: AP)

In recent days, Mr. Nguyen Dinh Long in Thach That, Hanoi often sells on facebook some batches of ca cuong at an expensive price: 35,000 VND / head. On the surface, Ca cuong is no different from cockroaches, but they are sold at such a high price that startles many people. However, Mr. Long commented, the selling price of Ca cuong this year has decreased significantly compared to last year due to the Covid-19 translation. In previous years, the retail price of Ca cuong never fell below 5 million VND / kg and below 50,000 VND / unit. Ca cuong looks like a cockroach He shared that he imported Ca cuong from Laos or some areas in the South; After that, bring them to Hanoi to sell to retail customers or restaurants selling snacks. In the North, there are very few Ca cuong because people abuse plant protection drugs in the field, so Ca cuong almost rarely appears. Explaining why this thin-bodied insect resembling cockroaches and stink bugs is bought by many people, Mr. Long said: “Ca cuong lives both on the banks and ponds, under water rice fields, but carries essential oils. rare. Therefore, many customers who buy Ca cuong will wash them and then put them on the grill. Then, they cut into small pieces and put directly into the sauce or use gradually “. Or for more convenience, many customers buy Ca cuong to extract the essential oil and store it in a sealed jar. Each time they eat, they just need to bring 1-2 drops into the bowl of sauce. Due to the expensive price of Ca cuong, most retail customers only buy a few to a dozen. Particularly for the rich, the house with conditions or the restaurant or restaurant has just ordered 0.5kg to 1kg. This man added, 1kg Ca cuong usually consists of 80-100 children, depending on the big or small. Calculated, 1kg Ca cuong costs about 3.5 million. One day, Mr. Long sells at least a few dozen to 200 ca cuong. But inside the body they contain special essential oils Many customers like Ca cuong, imported goods go anywhere “On Tet holidays, Ca cuong is asked by many customers to soak fish sauce, use essential oils to spice up festival dishes such as rolls, bun cha, vermicelli … Roasting coffee stalks as bait. However, due to the scarcity of goods, our house is not much for sale. Customers who want to pick up must book at least a week to return the goods ”. In addition to selling whole fresh Ca cuong, Mr. Long also imported a few other products extracted from Ca cuong at a price that is not cheap, such as: Whole Ca cuong fish sauce (soaked 10 males) 500,000 VND / bottle Ca cuong essential oil 300,000 VND / bottle, Ca cuong wine 1.2 million / 2 liter bottle. As a construction engineer, Mr. Tran Van Kien in Cau Dien, Hanoi has just ordered 0.5 kg of male Ca cuong to soak in wine and soak fish sauce. Although their prices are expensive, he is very fond of this insect. “Male Ca cuong has an essential oil smell like cinnamon. When taking the essential oils out, my wife often let her husband soak fish sauce or wine. Eating at the dipping country house always has a familiar tomato cuong taste. Because the tomato sauce has the slight scent of cinnamon and banana oil, now without the tomato cuong, the sauce is very bland, “Kien said. Mr. Kien said that his family has Ca cuong essential oil to eat almost all year round. Therefore, when friends come to his house to eat and drink, the bowl of tomato sauce and tomato wine has an unusual smell, complimenting him because this is a unique and strange dish that few people know.