Incorrect or contentious tax assessments are not uncommon in Germany. Fortunately, administrative acts such as tax assessments do not have to be accepted. If you receive your tax assessment and realise that it is incorrect or that you disagree with the result, you have the option of settling the tax dispute out of court by filing an objection against the tax assessment. If this remains unsuccessful, you can file a complaint with the German tax court with the support of a lawyer to have the tax office’s decision reviewed again. However, this procedure requires a sound knowledge of German tax law and current case law.
In this context, the German law firm Schlun & Elseven Rechtsanwälte offers skilled and committed legal assistance. Regardless of whether your matter concerns the contestation of an incorrect tax assessment notice or voluntary self-disclosure in the event of tax evasion – our German tax lawyers are at your side and will provide you with comprehensive legal advice. If you need expert support in a tax dispute, please do not hesitate to contact us.
Appeal against the Tax Assessment in Germany
If the German tax authorities think that you or your company have not made the required tax payments, you can file an objection with your tax office (see Section 347 of the German Fiscal Code, AO). This is the case if the tax assessment notice is incorrect – e.g. due to a transposed figure or incorrect transfer of data by the tax office. The deadline for filing an objection is generally one month from notification of the tax assessment. The objection must be submitted in writing. However, a detailed statement of reasons is not required at this time.
If the tax office does not request further information to examine your request, the next step is to examine the notification and make a decision. Submitting an objection can, therefore, lead to the tax office recognising an error and accepting your objection. In such a case, you will be informed, for example, by sending a new tax assessment notice (remedial notice) that the old/incorrect notice has been corrected or amended so that the objection procedure is deemed to have been settled. If the tax office does not uphold your objection and the out-of-court appeal procedure is therefore unsuccessful, the matter can also be brought before the tax court in Germany. As a rule, there is also a time limit of one month for filing a complaint.
Professional legal advice can be crucial, especially during court proceedings. The lawyers at Schlun & Elseven Rechtsanwälte are happy to support you. We advise you before and during the proceedings and constantly monitor your rights and obligations. Our German tax lawyers will also advise you if the information you have provided in your tax return or during the proceedings is incorrect. Withholding such essential information can lead to further legal problems that must be avoided.
Suspension of Enforcement
When filing an objection to a tax assessment in Germany, the question often arises as to whether there is still an obligation to pay the tax. This applies in particular in cases where the person concerned is certain that they will receive a refund. The obligation to pay taxes remains regardless of the concerns of the person concerned. This is at least the case if, in addition to filing an objection, an application for suspension of enforcement has not been made. The tax office then agrees to this application if it has established after reviewing the documents that the tax assessment is incorrect. The tax office will inform you of the exact suspension amount after examining your case. Please bear in mind that the obligation to pay a partial amount may remain.
Filing a Complaint with the German Tax Court
Procedural errors are a common reason why the German tax court dismisses many appeals due to inadmissibility. This also includes cases that would have had a good chance of success due to their facts. Such procedural errors can relate to the submission of evidence, the application for a suspension of execution and the information in the statement of claim. Our German tax lawyers will ensure that your proceedings do not fail due to procedural errors. With the right plan and preparation, our lawyers will lead you to success in court.
A tax dispute can go to the German Federal Fiscal Court in Munich. There, the judges examine whether the lower courts’ decisions are consistent in their application of the law. The German Federal Fiscal Court is the court of appeal and hears all cases concerning tax issues – including tax disputes.
When lodging an appeal based on the interpretation and application of the law, it is essential to have the support of a lawyer. Deadlines must be met, strategies determined, and case decisions analysed. Should a case reach this level, professional legal representation is imperative.
Prevention of Tax Disputes | Voluntary Self-Disclosure with Exemption from Punishment
In the case of severe tax offences such as tax evasion, tax disputes can lead to serious consequences in Germany. One way to prevent this is to make a voluntary self-disclosure as soon as you realise you have not paid your taxes correctly. Before taking such a step, however, you should seek advice from an experienced German tax lawyer.
Schlun & Elseven: Legal Advice for Companies
With our many years of experience in representing companies, we can advise you on all matters relating to German tax law. Working with our English-speaking lawyers, whether onsite or through online consultations, ensures your company properly fulfils all German tax law requirements. With our expertise, we support your company in designing internal compliance systems so that you and your employees are always legally on the safe side. In addition, our lawyers will prepare your company specifically for tax audits to prevent unnecessary pitfalls.
Should a dispute arise, our lawyers will first attempt to settle the matter out of court. Avoiding legal proceedings before the German tax court usually saves time and money. If legal proceedings cannot be avoided, our lawyers will represent your interests to ensure your rights are always safeguarded.
Practice Group: German Tax Law
Practice Group:
German Tax Law
Contact our German Tax Lawyers
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