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The BFH ruling: a carte blanche for state surveillance

The BFH ruling: a carte blanche for state surveillance

Protect your fundamental right to informational self-determination

The fundamental right to informational self-determination guarantees that every person retains control over the disclosure and use of their personal data. This right was recognized by the Federal Constitutional Court in 1983 in the so-called "census ruling" and is considered essential for the free development of the personality in the modern world of data. Despite this importance, a ruling by the Federal Fiscal Court (BFH) has severely restricted the right by granting the tax office extensive powers to inspect foreign accounts. In this article, we explain how you can defend yourself against this encroachment by submitting a LLC in the USA and found a Bank account in a non-data exchange country.

The BFH ruling: a carte blanche for state surveillance

In a recent ruling, the Federal Fiscal Court decided that the tax office is entitled to obtain information about foreign accounts, even if this violates the fundamental right to informational self-determination. The court argued that the state's interest in tax honesty outweighed the individual right to data protection. This ruling has practically given the tax office carte blanche to obtain the financial data of Citizens which is an alarming precedent.

https://www.bundesfinanzhof.de/de/entscheidung/entscheidungen-online/detail/STRE202410049/

Your rights under attack

The BFH ruling shows just how far the state is prepared to go in encroaching on the privacy of its citizens. Under the guise of tax honesty, fundamental rights are being undermined and informational self-determination is being trampled underfoot. It is time to defend ourselves against this development and protect our own data. Fortunately, there are legal ways to limit the power of the tax office.

The solution

USA An LLC in the USA and a bank account in a non-data-sharing country

An effective strategy for protecting your financial data from access by the German tax authorities is to set up a Limited Liability Company (LLC) in the USA. The United States does not participate in international data exchange, which means that your finances are safe from prying eyes with a US LLC. Countries like Delaware, Nevada and Wyoming also offer particularly favorable tax laws and strict data protection regulations that increase your protection even further. With an LLC in the USA, you can control what information you disclose to the German tax authorities and thus protect your right to informational self-determination.

Why an LLC in the USA?

The United States is known for its robust data protection laws and strict non-participation in international data exchange. An LLC in the USA offers the following advantages:

  • Data protection: Strict laws protect the identity of company owners.
  • Tax advantages: Certain federal states offer attractive tax regulations.
  • Legal certainty: US legal system provides a stable and reliable framework.

Forming an LLC: steps and requirements

Forming an LLC in the USA is a fairly straightforward process:

  1. Choice of federal state: Choose a state known for privacy and tax incentives, such as Delaware, Nevada or Wyoming.
  2. Registration: Submit the required documents to the responsible Secretary of State.
  3. EIN number: Apply for an Employer Identification Number (EIN) from the IRS.
  4. Bank account: Open a bank account in a non-data-sharing country to further protect your finances.

Opening a bank account in a non-data exchange country

In addition to setting up an LLC in the USA, you should open a bank account in a country that is not part of the automatic transfer system. Exchange of information participates. Countries such as Switzerland, Singapore or Hong Kong offer robust data protection laws and protect your financial information from prying eyes.

Conclusion

The ruling of the Federal Fiscal Court represents a significant encroachment on the fundamental right to informational self-determination. Nevertheless, there are legal and effective strategies to protect your financial data from government surveillance. By setting up an LLC in the USA and opening a bank account in a non-data-sharing country, you can maintain your privacy and protect your data from access by the tax authorities. Use these options to defend your informational self-determination.

FAQs

How does an LLC in the USA protect my financial data?

An LLC in the USA offers comprehensive protection of your financial data through strict data protection laws and non-participation in international data exchange.

Which states in the USA are particularly suitable for the formation of an LLC?

Delaware, Nevada and Wyoming, New Mexico are known for their favorable tax laws and strict data protection regulations.

Can the German tax office access my US LLC account?

As the USA does not participate in international data exchange, the German tax authorities' access to a US LLC account is severely restricted.

Which countries are suitable for opening a bank account to protect my financial data?

Countries such as Switzerland, Singapore and Hong Kong offer robust data protection laws and do not participate in the automatic exchange of information.

How complicated is it to set up an LLC in the USA?

Forming an LLC in the US is relatively straightforward and requires only a few steps, including registering and applying for an EIN number.

What are the advantages of an LLC in the USA compared to other Corporate forms?

An LLC offers flexibility, tax advantages and, above all, a high standard of data protection that safeguards your financial data.

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Disclaimer: Please note that the above dates, tax rates and regulations may change over time. Do not make any independent decisions without first consulting an expert for your individual situation. It is in your interest to always receive individual information from an experienced expert who knows your situation.

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