How TaxPro completely overturns an unlawful tax assessment
Initial situation: Ten years of retroactive taxation due to alleged tax evasion
An IT freelancer with contracts for German companies via international intermediaries was assessed for income tax retroactively for four years by the Munich tax office.
Reason: Tax evasion – hence extended assessment period, additional assessment and high tax demands .
The tax office assumed full tax liability in Germany and attributed all foreign income to the client – without any actual evidence.
YouTube Video: 3 things the tax office isn't allowed to do (but still does!)
Strategy: TaxPro focuses on the statute of limitations for assessment
TaxPro challenged the notices legally – focusing on the statute of limitations under Section 169 of the German Fiscal Code (AO) and the inadmissible assumption of tax evasion.
The key point: The tax office could not prove any intent or deception to justify the extended deadline. Therefore, the assessment deadline had expired.
Result: No income tax for four disputed years
The Munich Finance Court ruled in favor of the client:
No tax liability for four years
All estimates and additional demands have been cancelled
What you should take away from this:
The tax office may not extend assessment deadlines arbitrarily – tax evasion must be proven
Self-employed people with international connections are particularly frequently affected – and require precise legal defense
TaxPro knows the limits of the statute of limitations – and uses them consistently to the advantage of its clients
Old tax years, estimates, foreign references?
Have your notices checked – we’ll show you what’s possible before it gets expensive.