Group Requests

Closed Foreign Account and Still Not Safe

The exchange of tax information between Germany and foreign countries is expanding significantly. This information flow is based on various legal foundations, including information clauses in double taxation agreements (DTA), specific international agreements, the EU Mutual Assistance Directive, and the EU Cooperation Regulation.

A group request is an inquiry by a tax authority that targets a large number of taxpayers who are not initially identified but are grouped together based on common criteria. The legality of such a request requires that the requesting state cannot obtain the requested information through its own investigations within its territory.

For example, Germany could make a request to the Swiss tax authorities: “We ask for the identification of all account holders in Switzerland with residence in Germany, whose bank relationship ended before 2017 and whose assets were paid out in cash or transferred to a third country (i.e., not to Germany or another EU country).” Random or speculative requests are not permitted. The request must include a suspicious criterion, such as the unusual practice of withdrawing entire assets in cash or transferring them outside the country of residence.