How TaxPro protects cash businesses from ruinous tax assessments
Initial situation: When cash shortages become a threat to existence
A family-run wine bar and direct sales business was confronted with substantial tax backlogs during an audit. The tax office accused the business of deficiencies in its cash management – including a handwritten cash book next to a cash register.
Without examining the actual circumstances of the business, the tax office made a blanket overestimation of the sales. This placed the business's economic viability at serious risk.
YouTube Video: Can the tax office ruin my company?
Strategy: What TaxPro did differently
TaxPro successfully filed an appeal with the Federal Fiscal Court (BFH) – with the central argument:
A tax estimate must be realistic, economically comprehensible and related to the specific business.
The Federal Fiscal Court overturned the previous ruling and referred the case back to the Finance Court. The judges criticized, in particular, that neither the actual performance of the business nor the industry-specific characteristics of a cash-based business had been taken into account.
Result: Legal certainty for cash-based businesses – achieved through TaxPro
Thanks to TaxPro's legal arguments, a ruinous tax assessment was averted. The ruling remains a landmark ruling on the topic of assessments in cash-based businesses —and has been successfully applied in over 100 other cases with similar circumstances.
What you should take away from this:
Even if your cash register is not perfect, the tax office is not allowed to make unrealistic sales estimates.
Cash-intensive businesses such as restaurants, retail stores or car dealerships are particularly at risk – and need specialized defense.
TaxPro knows the typical mistakes made in tax audits – and knows how to effectively defend against them legally.
You work with cash – and the tax office is checking?
Then you should act early. TaxPro provides you with clear, structured advice, drawing on over 30 years of experience in tax dispute resolution.