Death blow for tax office estimates: BFH ruling guideline estimation 2025
- Patricia Lederer
- Sep 24
- 2 min read
Updated: Sep 25
How the BFH ruling guideline estimation 2025 stops the tax office
Frankfurt am Main
September 25, 2025
On September 25, 2025, the Federal Fiscal Court (XR 19/21) published a judgment that came as a thunderbolt : the tax office's standard rate estimate is no longer valid.
For cash-based businesses – from restaurants to cafes to bakeries – this ruling spells the death knell for an appraisal practice that has held entire industries in its stranglehold for decades.
The Federal Fiscal Court makes it clear: This method is statistically questionable, unrepresentative, and legally untenable . For entrepreneurs, this means: the tax auditors' favorite weapon is dead.
A milestone for the discretion of the tax office
The fact that the Federal Fiscal Court has now so clearly overturned the standard rate collection confirms our work: TaxPro has played a significant role in this case law development .
At this year's Finance Court meeting in Cologne, Federal Fiscal Court Judge Dr. Kulosa had already expressed doubts about the continued existence of the standard rate collection.
With this ruling, the Federal Fiscal Court has delivered. It is a true milestone in the exercise of discretion by the tax office :
General estimates are no longer sufficient.
Tax authorities and courts must provide comprehensible reasons.
Entrepreneurs have a better chance of defending themselves.
The back door remains
The collection of standard rates isn't completely off the table. The Federal Fiscal Court (BFH) states: If there is grossly incorrect accounting, the tax office may continue to use standard rates.
This means that auditors will examine accounting records even more meticulously in the future – looking for formal errors.
Post-calculation: new area of conflict
The Federal Fiscal Court says that a follow-up calculation is more suitable than a standard rate estimate. But what does that mean in practice? Auditors calculate how many pizzas would need to be baked from a sack of flour or how many cups of coffee a business would need to sell from a pound of beans.
The problem: Such models often have nothing to do with the actual processes in the business. Business owners must be prepared for new conflicts with the tax authorities.
Conclusion
The BFH ruling on the 2025 guideline rate estimate is a game changer :
The guideline collection has outlived its usefulness.
The discretion of the tax office is being redefined.
Entrepreneurs have more chances to defend themselves successfully.
TaxPro defends entrepreneurs – consistently, professionally, and successfully.
TaxPro – first address against tax office estimates
TaxPro tax experts have played a key role in this development of case law . We know how tax auditors work—and how to stop them.
This judgment shows:
Entrepreneurs need a clear defense against incorrect estimates.
Without professional help, companies run the risk of being crushed between exaggerated fantasy figures and unrealistic subsequent calculations .
TaxPro is the first port of call when it comes to smashing tax office estimates and protecting clients from ruinous consequences.
