Germany tax rate

Germany’s reputation for relatively low social inequality may be largely due to the fact that the country’s super rich have become adapt at squirrelling away their wealth, a new study suggests. The study by the centre-left Heinrich Böckler foundation argues that wealth inequality in Germany is likely to be considerably higher than previously thought. It shows that the richest 10% in the country own assets amounting to 1.4m euros on average, 80 times more than the annual income of the median German household. Earlier this year, the German Economic Institute (DIW) had released a study indicating that contrary to common conceptions, Germany had the most unequal distribution of wealth in the eurozone. But while German wealth inequality was high, the study concluded, it was also relatively constant. Crucially, the new study claims that the wealth gap is actually widening. Researchers attribute the lack of data on the wealth of Germany’s super rich to the abolition of … [Read more...] about Wealth inequality in Germany likely to be higher than previously thought

A tax avoidance scheme alleged to be used by thousands of wealthy individuals, including the comedian Jimmy Carr, is under investigation by authorities. HM Revenue and Customs told the Guardian that accounting firms using a scheme to create offshore loans and new contracts of employment for UK earners were being investigated and could be taken to court. HMRC said the scheme, known as K2, was already under serious scrutiny by tax inspectors before a Times investigation on Tuesday (paywall) which alleged that comedian and presenter Carr was avoiding paying higher rates of tax by funnelling millions of his assets through a £168m Jersey-based scheme. HMRC said it was currently investigating whether the scheme was technically legal. "If it [K2] does work technically, HMRC will challenge it in every way. There is no way anyone, no matter who they are, is going to get away with paying less than they should," they said. An investigation by the Times accused Channel 4's presenter of 8 out … [Read more...] about Tax avoidance scheme used by Jimmy Carr investigated by HMRC

The German economy narrowly dodged a recession as consumers and the Government increased spending enough to stave off another fall in output. Growth returned at a near-stagnant rate of 0.1pc in the three months to September. This followed a drop in the second quarter of 0.2pc - deeper than the 0.1pc drop initially estimated by the Federal Statistics Office. Two quarterly declines in a row would have meant the country was in recession. Construction output increased alongside expansion by households and the government, while exports also rose -providing relief from a trade war-induced slump that has devastated the industrial sector, including Germany's prized car makers. However, investment in... … [Read more...] about Germany dodges recession with household and government spending spree

The Mayfair investor overseeing plans that could lead to the eviction of dozens of low-income families on an east London estate has bought a £3.9m country mansion, prompting anger among residents facing homelessness. Mark Donnor, 41, the managing principal of the London office of Westbrook partners, the $11bn (£7bn) US investment firm behind the buy-out of the New Era estate in Hoxton, last year bought the 12-bedroom mansion in the Home Counties, Land Registry documents reveal. The grade II-listed mansion has a lawn tennis court, swimming pool, sauna, gymnasium and butler’s quarters. New Era tenants have been warned that they face eviction and a tripling of rent-to-market values under Westbrook’s investment plans for the estate, which Hackney council has estimated will force almost half the families into homelessness. Residents include elderly people, disabled individuals, single parents and NHS workers. They have accused the investors of “social … [Read more...] about Families facing eviction from New Era estate outraged at landlord’s mansion

The rich have been getting richer during the recession while the poor get poorer. Right? Yes, indeed, it’s become a sad truism, worth repeating but hardly news. Yet Channel 4’s Dispatches programme devoted Monday night’s episode to identifying the alleged culprit. Guess what, it turns out to be the government. To be more precise, the fault lies with the last Labour government. So said the Dispatches programme’s author and presenter, Fraser Nelson , who also happens to be editor of the Spectator during what is turning out to be one of its more ideological phases – as distinct from the High Tory scepticism of many decades. Since the programme was made in cooperation with Iain Duncan Smith’s Centre for Social Justice (CSJ) this is hardly surprising. IDS is seen in the programme explaining that he inherited a dysfunctional welfare system which penalised those working in low-paid jobs via Gordon Brown’s tax credit top-up system. But it’s going … [Read more...] about Inequality is Whitehall’s fault? Don’t be ridiculous