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Deal with the tax office: When you should say no

The three types of deals with the tax office

  1. The good deal
    A good deal is fair, transparent, and future-proof. You know exactly
    what taxes will be due and what consequences this will have for you. This deal is manageable, and you can agree to it with a clear conscience.

  2. The bad deal
    A bad deal is the opposite:
    It's incomprehensible or seems unfair. The tax is excessive or incomprehensible. It could come back to haunt you in the future – perhaps during another tax audit.

  3. The impossible deal
    The impossible deal is not only risky, but often also legally impermissible.


Typical traps:

  • Corona aid: If you retroactively report higher profits as a result of the deal, you may face subsidy repayments and even criminal proceedings for subsidy fraud.

  • Open legal questions: Deals that are intended to circumvent unclear legal questions are ineffective – as is currently the case with the question of sales estimates in tax audits.

YouTube Video: Deal with the tax office? 3 things everyone should know!

Example:
A client comes to TaxPro. He had entered into a deal with the tax office based on uncertain estimates. Years later, this exact deal was copied exactly during a new audit. The result: an even larger tax bill.

The hidden risks of a bad deal

A bad or impossible deal can create more problems than it solves.

  • Future risk: A deal binds only you – not the tax office. In a new audit, the old results could be used against you again.

  • Legal uncertainties: If a deal is invalid, the tax office is not obliged to comply with it.

Our advice: Don't enter into any deal if you have any doubts about its fairness or legal validity. Document every conversation with the tax office and seek professional help from TaxPro tax experts.

How to defend yourself against a bad deal

If you reject a deal, you have clear options:

  1. Wait for the tax assessment: The tax office will issue a notice after the audit.

  2. File an objection: You can submit this quickly and effectively with the TaxPro tax experts.

  3. Legal clarification: If the tax office rejects your objection, you can have the matter clarified legally – often with better chances of success than with a bad deal.


When a deal makes sense

A deal can be a solution if:

  • The facts are unclear: for example, if documents are missing or the facts are difficult to clarify.

  • You understand the terms and conditions: All types of taxes and subsequent costs (e.g. interest or penalties) are known.

Is a deal pending? Our first aid consultation at TaxPro will quickly show you whether the proposal is acceptable to you—or whether you're better off pursuing other options. Bottom line: A deal with the tax office should be well-considered. Use TaxPro's expertise to avoid risks and protect your rights. We'll help you make smart decisions—and avoid unnecessary problems. Book a first aid consultation now and gain clarity!

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TaxPro Law Firm mbH

Kruppstrasse 110

60388 Frankfurt am Main

T: +49 (0)69 949 4444 20
Phone: +49 (0)69 949 4444 29
E: team[at]taxpro-gmbh.de

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Register court: District Court of Frankfurt am Main

HRB 124610

Managing Director Patricia Lederer

Attorney and specialist in tax law, commercial and corporate law

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