On January 22, 2012, I posted this entry:
At the present time I am in contact with two Tax Departments, one is here in NZ and the other one in Germany.
The reason why they are in contact with me is that I receive a small pension from Germany since 2005.
Since 2005 I pay tax on my small German pension here in NZ and the payment for the next bill is due at the beginning of February this year.
In 2011 the German Tax Department asked me for the first time to pay tax on my German pension. At the beginning of this year I received tax bills for the years 2005-2010, six in all. The deadline to pay the 6 bills is 5th of March this year.
All this is really bad news for me and I am only at the beginning of this nasty development.
I promised also at that time to let you know about the outcome.
Here it is:
Only Germany is entitled to collect tax for the pension. All the money I paid here in New Zealand I got back immediately. On top of that Germany is not collecting as much tax as NZ. Only about 50 % of what NZ does!