FAQ Section

You can lodge an objection in writing or in writing with the tax office. If you have not given reasons for the objection, the tax office will ask you to give reasons.

You may consult a lawyer or tax advisor at any stage of the objection procedure.

The time limit is one month. The objection must be received by the tax office by the deadline - sending it within the deadline is not sufficient!

You should be particularly careful with multi-stage assessment procedures, i.e. for partnerships and joint heirship. If the first assessment is wrong, but you only notice this when taxes are high in the last assessment, it is usually too late.

Examples:
Participation in a commercial limited liability company & limited partnership (GmbH & Co. KG)

Inheritance and gift tax, if the value of the transferred assets is first determined and the tax is only assessed in the second step.

YES. Even if you appeal against a tax assessment or file a lawsuit before the tax court, you must pay the assessed tax. However, you can apply to delay a tax payment until the appeal proceedings have been concluded (suspension of execution). The application only has a chance of success if you can provide very good reasons that the tax assessment is wrong. If the tax office rejects the application, you can file the application with the tax court.

If it turns out that the tax assessment was legitimate in whole or in part, you will then have to pay the taxes as finally assessed plus interest.

The costs of a lawsuit depend on the value of the subject matter. In simple terms, this is the figure you are disputing with the tax office. The higher the figure in dispute, the higher the costs.

The costs consist of the lawyer's fees and the court costs. If you win the case, the tax office must reimburse the legal costs for the lawyer; you will also be reimbursed for the court fees. If you only partially win, the costs will only be reimbursed to you on a pro rata basis.

You can also apply for the tax court to declare the involvement of a lawyer or tax advisor in the opposition proceedings as necessary. In that case, you will also be reimbursed the costs in whole or in part if you win in whole or in part.

You can appeal to the Federal Fiscal Court. But be careful: the Federal Fiscal Court does not completely reopen the proceedings, but, simply put, only examines the ruling for legal errors. Therefore, you must already disclose all relevant facts in the proceedings before the tax court and present as many legal arguments as possible that support your request.

Even if you take legal action against a tax assessment, you must pay the assessed tax on time. If you do not meet your payment obligation, the tax office can seize your bank accounts and other assets. An attachment of accounts order often has dramatic consequences, whether it affects a private person or a company, because those affected no longer have access to liquid funds. They can no longer pay the rent or home loan installments, pay suppliers or pay employees their salary.

To avoid that scenario, you may file a motion for deferred payment. However, the motion is granted only when you will most likely win your case. The taxpayer has to present all facts and circumstances as well as a sound legal assessment to convince the tax office or the fiscal court respectively - a challenging task.
If you are unable to pay taxes on time, you should seek legal advice immediately.

Up to ten years. The exact period depends, among other things, on the type of tax and the previous assessment procedure.

If you notice that you have filed an incorrect tax return, you are legally obliged to correct the incorrect information immediately. If you fail to correct it against your better judgement, you may be liable to prosecution for tax evasion. As soon as you discover an error, it is advisable to seek legal advice.

This advice can also provide you with recommendations on how to avoid tax return errors in the future.

Es gibt vielfältige Änderungsmöglichkeiten mit ganz unterschiedlichen Voraussetzungen. Von Vorteil ist es, wenn der Bescheid noch unter dem sogenannten Vorbehalt der Nachprüfung steht.

In multi-stage procedures, in which several tax assessments are based on each other, the amendment is often complex and can have consequential effects that one would not have expected at first glance. Comprehensive advice is therefore recommended.

The tax office does not charge any fees. You only pay the costs for your legal counsel.

If you win the appeal against the tax assessment (in whole or in part), the legal fees for the appeal proceedings can be reimbursed to you (in whole or in part).

YES, this can happen. An apartment or a house are both the starting point for taxation in many countries. The Federal Republic of Germany has concluded so-called Double Tax Treaties with almost 100 countries, which are intended to prevent you from being charged with income tax/corporation tax in both countries or to reduce the double burden. This means that you may be liable for tax on certain income in Germany while paying tax on other income abroad. Often you have to file tax returns in both countries.

Unfortunately, there are only double taxation agreements with 6 countries for inheritance and gift tax. Relief can only be achieved through the crediting of foreign taxes, which, however, is often narrowly focused.

Tax advice in all countries in which you have a foothold is recommended. Through my network of international specialists, I am happy to help you find the right advisor abroad.

By moving abroad, many taxpayers want to cut their ties to Germany. However, this is not so easy if there are continued links to Germany, i.e. if assets are located in Germany (e.g. real estate, shares in German companies) or part of the family continues to live in Germany.

The move abroad can trigger exit taxation (§ 6 AStG). This is particularly awkward because the move in itself does not generate liquid assets with which you can pay the exit tax.

In this case, it is advisable to seek advice at an early stage in order to find a tailor-made solution with which the parties involved can implement their life plan in a tax-efficient and sustainable manner.

The tax rates range between 7% and 50%. However, there are tax exemptions which are EUR 500,000 for spouses and EUR 400,000 for children and stepchildren. Other relatives usually have to be satisfied with lower tax exemptions. Even within the family, depending on the constellation, it can be as little as EUR 20,000, i.e. exactly the same as between strangers.

All gifts or inheritances within a ten-year period are added together. If, for example, a mother gives her son an amount of EUR 200,000 in 2016 and the son inherits another EUR 300,000 in 2022, he will have received EUR 500,000 within 10 years. Less the tax exemption of EUR 400,000, EUR 100,000 is taxable.

Because of the sharp rise in real estate prices, these cases are becoming more and more frequent. The tax is due regardless of whether the heir has sufficient liquid assets or not. Often the heir or the community of heirs has to sell the property in order to pay the inheritance tax.

The only thing that really here is anticipatory advice before the inheritance takes effect. If an heir or heirs are facing the issue without proper planning, they should immediately take advice to avoid the adverse effects of late payment.
Siehe „Kann ich Steuern später zahlen?“

NO. There is no general tax exemption for transactions on separation and divorce.

If spouses transfer assets to each other in the course of a divorce, whether it is a property, shares in a company or a share deposit, the transfer may be subject to income tax. For many, the tax comes as a surprise when the divorce is finalised. Then it is usually too late to choose a more tax-efficient way. The frustration is great when one spouse pays the taxes and consequently has significantly less money at their disposal than was anticipated at the time of the divorce.

It is therefore advisable to have the planned distribution of assets examined for tax purposes. There are often ways that lead to a comparable result, but cost less in taxes.

The tax auditor may inspect the entire bookkeeping, i.e. in particular examine all invoices. The corresponding contracts, e.g. rental or purchase contracts, must also be presented.

The company is responsible for ensuring that the receipts are correct and complete. A company must document two areas in particular detail:

• Business relations abroad
• Transactions with related parties, i.e. with shareholders, their relatives and companies belonging to the same group of companies (both domestic and foreign).

It is advisable to collect and file receipts in an orderly manner during the course of business. Longer periods are often audited; four years and more are not uncommon. The longer the period, the more difficult it is to find adequate receipts.

As soon as a bank does business with a US citizen, it is subject to special due diligence obligations. Many banks only accept US citizens as customers under certain conditions. This also applies to so-called Accidental Americans, i.e. people who have only obtained citizenship by chance through birth in the USA.

I will support you in your correspondence with the banks and, if desired, cooperate with specialists in the USA, to renounce your US citizenship.