Hard drive confiscated – and then to the tax office?

Can the tax office search your confiscated hard drive? The Federal Fiscal Court says: No – not without a clear legal basis. What entrepreneurs need to know now.

Frankfurt am Main

May 26, 2025

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BFH ruling protects fundamental rights: Data transfer to the tax office was inadmissible

Initial situation: Public prosecutor's office confiscated – tax office evaluates

In a recent case, the tax office wanted to register a foreign corporation for tax purposes in Germany. The background: The German managing director had stored all business emails and documents locally on his private hard drive. The public prosecutor's office confiscated these documents as part of an investigation and forwarded them unfiltered to the tax office.

The tax office used the database to estimate sales and profits for four years – resulting in significant tax demands.

Key question: Is the tax office allowed to use such data?

No – says the Federal Fiscal Court (BFH). The tax office's use of the hard drive data was unlawful because:

• it is an interference with the fundamental right to informational self-determination ,

• the disclosure by the public prosecutor's office was unfiltered and therefore disproportionate ,

• there was no legal basis that would have permitted this blanket data transfer.

The legal sticking point: data protection trumps tax interests

The BFH clarifies:

“The hard drive is subject to a prohibition on use as evidence .”

The data may not be used to justify tax estimates if they were passed on to the tax office without being checked for relevance, proportionality and data protection.

The judgment emphasizes:

➡️ Investigating authorities must first check what is private.

➡️ Only relevant data may be passed on.

➡️ Merely passing on information “on suspicion” is illegal .

What entrepreneurs should learn from this

1. Actively protect your own data

➡️ Your hard drive, your emails, your documents – even if they are searched, data protection applies.

2. Don’t be afraid of estimates – but protect yourself legally

➡️ Tax office estimates are always vulnerable – even in cases involving foreign transactions or digital data access.

3. Fundamental rights also apply in tax law

➡️ The ruling confirms: Entrepreneurs have a right to a fair trial – even in international constellations.

TaxPro defends you against digital attacks

The first instance tax court had ruled against the company . Only a recourse to the Federal Fiscal Court brought about a change in the situation – with the support of specialized tax law experts .

At TaxPro, we are familiar with defense strategies in procedural law and criminal tax law – even when data is seized and misused.

We protect your rights with over 30 years of experience in dealing with the tax office.

Conclusion: Your data is not fair game

The ruling shows that anyone who works digitally is not defenseless. Even a confiscated hard drive is no carte blanche for the tax office.

👉 Get advice now before the tax office creates facts.