If a company files for insolvency and the competent district court opens the (provisional) insolvency proceedings, this is linked to the appointment of an insolvency administrator. The insolvency administrator has the task of restructuring the insolvent company. If this “reorganisation” is no longer possible, the task of the administrator is primarily to distribute the existing assets and to satisfy all creditors.
Nevertheless, companies usually continue to run. There are therefore also tax obligations, which can no longer be fulfilled by the entrepreneur himself. Rather, the insolvency administrator assumes the tax rights and obligations, i.e. he prepares tax returns and advance notifications, makes payments and monitors the receipt of tax refunds by the tax office.
1. The insolvency administrator as tax representative
According to § 34 (1) AO, legal representatives of natural and legal persons have to fulfill the tax obligations of these persons. In particular, they shall ensure that any taxes incurred are or may be paid from the funds administered.
The insolvency administrator is, however, asset manager within the meaning of § 34 (3) AO and thus to be treated as a legal representative within the meaning of paragraph 1. However, the obligation to fulfil the tax obligations only extends to the extent that the power of representation would also extend in insolvency proceedings. For example, the insolvency administrator has to fulfill only the tax obligations of the insolvency debtor himself, but not also those of his spouse.
2. consequences of representation by the insolvency administrator
If insolvency proceedings are opened, the insolvency administrator acts as the contact person of the tax office in the place of the company or the private person. The obligation of the insolvency administrator begins with the opening of the insolvency proceedings by decision of the competent insolvency court (§ 80 (1) InsO). At this time, the debtor’s administrative and disposition rights are transferred to the insolvency administrator.
We take a look at the specific obligations of the insolvency administrator for the debtor:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.