Financial authorities – which include not only financial but also the main customs offices – have the possibility, under certain conditions, to determine tax liabilities for reasons of equity or irrecoverability in deviation from substantive law. Alternatively, the decree according to § 227 and the revocation according to § 261 AO come into consideration. So let us take a look at the specific circumstances for these procedural interventions.
1st General Recommendation and Revocation
If a tax arises under substantive law, it must be paid by the tax debtor – so the purpose of a tax assessment could be summarized colloquially. The corresponding legal bases can be found in the individual tax laws such as EStG, UStG and “Exoticen”, such as the Energy Tax Act (EnergieStG). The final determination and collection of the tax, however, regulates the tax code (AO).
In practice, however, there are also cases in which this comparably simple way does not lead to the desired success. The reason for this can be legal errors or insolvency of the taxable person. Depending on the individual case, the tax office with a different determination for equity reasons, remission and deduction has three possibilities to react to corresponding situations:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.