Federal Fiscal Court questions tax office estimate: Standard rate collection under scrutiny
- Patricia Lederer
- Jun 18
- 2 min read
What exactly happened at the court hearing on June 18, 2025? Is the collection of standard rates as the basis for the valuation of cash-based businesses about to be discontinued?
Frankfurt am Main
June 18, 2025
BFH questions Federal Ministry of Finance: Guideline collection under scrutiny
On today's hearing before the Federal Fiscal Court (BFH, XR 19 / 21 ), the Federal Ministry of Finance (BMF) came under increasing pressure. The topic on June 18, 2025, was the application of the standard rate collection – a comparison tool frequently used by tax offices when estimating additional operating income and expenses. The judges made it clear that the method is not only general, but also structurally problematic.
Criticism of lack of industry adaptation
The presiding judge particularly criticized the insufficient industry relevance of the benchmark rates. The example of a nightclub clearly demonstrated that the tax office used values from the restaurant industry—an inadmissible basis for comparison. The requirements for proper comparability were clearly not met. The judges criticized the estimation method as imprecise and lacking in practicality.
Doubts about the data basis and representativeness
The statistical basis for the standard rate collection is allegedly based on a random selection of audited businesses. However, the Federal Fiscal Court clarified that, in practice, the audits primarily concern economically successful businesses – a circumstance that systematically distorts the data basis. Thus, the collection contradicts the statutory audit standard (Section 193 of the German Fiscal Code), which requires a proper selection. The standard rates are therefore unrepresentative and lead to a disadvantage for taxpayers.
Estimation methods must be justified individually
The Federal Fiscal Court emphasized that estimation methods must be justified in a differentiated manner, based on due discretion. Blanket procedures such as the standard rate collection may only be used as a last resort when other methods fail. The court found that simply stating that individual circumstances should be taken into account in the final meeting minutes is insufficient.
Conclusion: Opportunities to defend against overestimations
Today's hearing signals a turning point in tax practice. The standard tax rate collection is not a precise instrument, but rather has significant weaknesses. Affected companies should not simply submit to estimated additional demands without a fight, but should take legal and professional action against inadmissible estimates.
TaxPro tax experts have many years of experience in defending against unlawful tax assessments. We understand the weak points of the tax administration and support you in taking targeted action. Learn more about our successful rulings on tax assessments here .
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