If the taxpayer does not comply with the obligations to provide information and cooperate, this usually leads to penalty payments, surcharges or the tax office’s power of assessment, which it usually exercises to the taxpayer’s disadvantage. In addition, the company’s own employees have to be assigned as contact persons, rooms have to be provided and the entire business process is disrupted. No one can say in advance how long the audit will take, whether specialist auditors will be called in or whether the audit will be interrupted and criminal tax proceedings initiated.
We think that the training and mindset of most tax officials in Germany is very profiscal and that the career of a tax auditor also depends on how much additional tax he can collect. It is therefore not surprising that it is no longer just about fair taxation but above all about additional revenue. Some of the tax auditor’s questions are only understood in retrospect and you realize that the information you have freely given is suddenly turned around and interpreted in favour of the tax office.
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You can find out how auditors proceed here.