BERLIN (Reuters) – German tax authorities should show leniency towards private households and companies, for example by suspending enforcement measures in certain cases, in light of the energy crisis, said a Finance Ministry letter seen by Reuters on Thursday.
BERLIN (Reuters) – German tax authorities should show leniency towards private households and companies, for example by suspending enforcement measures in certain cases, in light of the energy crisis, said a Finance Ministry letter seen by Reuters on Thursday.
Due to high energy costs, taxpayers may temporarily not be able to meet their obligations, said the letter.
“Tax authorities will take appropriate account of this special situation in the case of taxpayers who are not insignificantly negatively affected economically,” said the letter coordinated with the federal states’ top tax authorities.
Due tax payments could be deferred and advance payments could be adjusted upon request, said the letter, which added that authorities should use the leeway provided for them under law.
The special treatment for income and corporate taxes will initially apply until March 31, 2023, according to the letter.
(Reporting by Christian Kraemer, Writing by Miranda Murray, Editing by Rachel More)
Tax leniency refers to the flexibility shown by tax authorities towards taxpayers, allowing them to defer payments or adjust obligations due to special circumstances, such as economic hardship.
An enforcement measure is an action taken by tax authorities to ensure compliance with tax laws, which may include penalties, audits, or legal actions against non-compliant taxpayers.
An advance payment in taxation is a prepayment made towards a taxpayer's future tax liability, often based on estimated income or profits for the current tax year.
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