What are the legal consequences of correcting an error in a tax return in Germany?

Question from Mike, What are the legal consequences of correcting an error in a tax return in Germany?

Answer from AI:

In Germany, the tax law is governed by the German Tax Code (Abgabenordnung, AO). According to this code, if you discover an error in your tax return, you are obligated to correct it as soon as possible. This is in line with the principle of good faith (Treu und Glauben) which is a fundamental principle in German law.

Legal Consequences of Correcting an Error

Generally, if you correct an error in your tax return before the tax office has started an audit or issued a tax assessment, there should not be any legal consequences. This is because the tax office has not yet relied on the incorrect information to make a decision.

However, if the tax office has already started an audit or issued a tax assessment based on the incorrect information, you may face penalties. The penalties can range from fines to imprisonment, depending on the severity of the error and whether it was made intentionally or negligently.

Correcting an Error Transparently

In your case, you have acted transparently and promptly to correct the error. This is likely to be viewed favorably by the tax office. However, the final decision will depend on the specific circumstances of your case, including the nature of the error and the amount of tax involved.

Consulting a Legal Professional

While this information provides a general overview of the legal consequences of correcting an error in a tax return in Germany, it is always advisable to consult with a legal professional for personalized advice. A legal professional can provide guidance based on the specific facts of your case and the latest developments in tax law.

Useful Resources

• The German Tax Code (Abgabenordnung, AO) is the primary source of tax law in Germany. You can find the full text of the AO here.
• The Federal Ministry of Finance (Bundesministerium der Finanzen) provides information and guidance on tax matters. You can visit their website here.

Please note: This information is intended to provide a general understanding of the law. It is not intended to provide legal advice. Please consult with a legal professional for advice tailored to your specific circumstances.