Schufa ruling also applies to the tax office

This clear statement was made by the Federal Fiscal Court in its judgment published on 7 March 2024

Frankfurt am Main

March 8, 2024

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The ruling is groundbreaking. In its judgment published on March 7, 2024 – case number IX R 33/21 – the Federal Fiscal Court ruled:

The Schufa ruling of the European Court of Justice also applies to the tax office.

What happened?

The tax office had frozen a married couple's account due to outstanding late payment penalties. The couple had filed an appeal, citing constitutional concerns about the late payment penalties.

The tax office then went a step further and investigated additional bank accounts – not only in Germany, but also abroad. Officials initiated an account retrieval at the Federal Central Tax Office. The couple fought back.

A couple's fight against the tax office

After their account was frozen and they learned of an account withdrawal, the couple decided to take legal action. Their path led them through all the courts up to the Federal Fiscal Court in Munich. The court published its ruling on March 7, 2024, which could have far-reaching consequences.

The Federal Finance Court’s ruling and its significance

The Federal Fiscal Court found that the account retrieval, which allows the tax office to identify bank accounts in Germany and abroad, may violate the fundamental right to data protection. The court drew parallels to the Schufa ruling of the European Court of Justice of December 7, 2023. The ruling states that every citizen has the right to an effective judicial remedy against decisions that affect them and involve their personal data.

The lessons from the judgment

This ruling underscores the importance of data protection and the need for state authorities to protect citizens' rights when carrying out their duties. It also shows that the legal battle against seemingly overpowering state institutions is not hopeless.

What does this mean for the future?

For citizens, this means a strengthening of their data protection rights against government interference. For tax authorities and similar authorities, it means they must rethink and, if necessary, adapt their practices in handling personal data. The ruling could also serve as a signal for similar cases in other legal areas.

At a time when the protection of personal data is becoming increasingly important, this ruling sends a clear message. It is a victory for data protection and civil rights.