During a routine investigation, the Social Security Administration established that a Hungarian company failed to pay € 1,000,000 in social contributions. Panic and misunderstanding was the first reaction of the Hungarian entrepreneur, given that the company’s accounting was supposed to be managed properly and in accordance with all relevant German regulations by a German tax consulting agency, and therefore all records should have been up to date and correct.

After intensive consultation and testing, we were able to identify significant errors in the payroll. Following intensive consultations and an in-depth review of the situation, our knowledgeable experts managed to point out some major errors in the payroll accounting process. The problems were caused by a lack of knowledge of relevant regulations in Germany and the home country (regarding foreign companies operating in Germany), and resulted in erroneous payroll acounting. The outcome: After correcting the errors, and as a result of intensive negotiations with the German Social Security Administration, the Hungarian company did not have to make any additional payments.

Due to the complexity of international tax laws , the Hungarian company had very high tax payment obligations – both in Hungary and Germany. Such problems often happen due to a lack of knowledge of special international tax laws.

Once the RBO was put in charge, all previous books and entries were analyzed and evaluated in detail. It turned out that several mistakes were made in tax accounting. After a retrospective correction, the Hungarian company eventually received a six-figure tax refund.
That is RBO expertise at work!