Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 1 of 140
Übersetzung durch den Sprachendienst des Bundesministeriums der Finanzen.
Translation provided by the Language Service of the Federal Ministry of Finance.
Stand: Die Übersetzung berücksichtigt die Änderung(en) des Gesetzes durch Artikel 5 des
Gesetzes vom 22 .12.20 11 (BGBl. I S. 2959 )
Version information: The translation includes the amen dment(s) to the Act by Article 5 of the
Act of 22 .12 .20 11 (Federal Law Gazette I p. 2959 ) © 2012 juris GmbH, Saarbrücken
The Fiscal Code of German y
Fiscal Code of Germany in the version promulgated on 1 October 2002 (Federal Law
Gazette [Bundesgesetzblatt] I p. 3866; 2003 I p. 61), last amended by Article 5 of the
Ordinance of 22. Dezember 2011 (Federal Law Gazette I p. 2959 )
First Part
Introductory regulations
First Chapter
Scope of application
Section 1
Scope
(1) This Code shall apply to all taxes, including the tax rebates governed by German federal
law or the law of the European Communities insofar as these are administered by the
revenue authorities of the Federation or of the Länder. It may only be applied subject to the
law of the European Communities.
(2) The following provisions of this Code shall apply accordingly to impersonal taxes to the
extent that their administration has been assigned to the municipalities:
1. the provisions of the First, Second and Fourth Chapter of the First Part (Scope
of application, Tax definitions, Tax secrecy),
2. the provisions of the Second Part (Legal provisions on tax liability),
3. the provisions of the Third Part except s ections 82 to 84 (General rules of
procedure),
4. the provisions of the Fourth Part (Executing the taxation procedure),
5. the provisions of the Fifth Part (Levy procedure),
6. sections 351, 361(1), second sentence, and 361(3),
7. the provisions of the Eighth Part (P rovisions on criminal penalties and
administrative fines, criminal and administrative fine proceedings).
(3) Subject to the law of the European Communities, the provisions of this Code shall be
applied mutatis mutandis to ancillary tax payments. However, t he third to sixth chapters of
the Fourth Part shall only apply to the extent that this is specifically provided for.
Section 2
Primacy of international agreements
(1) Agreements on taxation concluded with other countries within the meaning of Article
59(2) , first sentence, shall take precedence over tax legislation insofar as they have become
directly applicable domestic law.
(2) To ensure the equality of tax treatment and to avoid double taxation or double non –
taxation, the Federal Ministry of Finance shal l be authorised with the consent of the
Bundesrat to issue ordinances on the implementation of arrangements reached by way of
consultation. Arrangements reached by way of consultation under the first sentence above

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 2 of 140
shall mean mutual agreements between the competent authorities of the contracting states
to a double taxation agreement with the aim of determining the details of the implementation
of such an agreement, and especially to resolve difficulties or doubts as to the interpretation
or application of t he respective agreement.
Second Chapter
Tax definitions
Section 3
Taxes, ancillary tax payments
(1) Taxes shall mean payments of money, other than payments made in consideration of the
performance of a particular activity, which are collected by a public b ody for the purpose of
raising revenue and imposed by the body on all persons to whom the characteristics on
which the law bases liability for payment apply; the raising of revenue may be a secondary
objective.
(2) Impersonal taxes shall mean real property tax and trade tax.
(3) Import and export duties pursuant to Article 4 numbers 10 and 11 of the Customs Code
shall be taxes within the meaning of this Code.
(4) Ancillary tax payments shall mean fees for delay (s ection 146(2b)), late -filing penalties
(sect ion 152), surcharges pursuant to s ection 162(4), interest (s ections 233 to 237), late –
payment penalties (s ection 240), coercive fines (s ection 329) and costs (s ections 89, 178,
178a and s ections 337 to 345) as well as interest within the meaning of the Cus toms Code
and late -filing fees under s ection 22a(5) of the Income Tax Act.
(5) Revenue from interest on import and export duties within the meaning of Article 4
numbers 10 and 11 of the Customs Code shall accrue to the Federation. Revenue from all
other in terest shall accrue to the political subdivision authorised to levy the corresponding
tax. Revenue from costs within the meaning of s ection 89 shall accrue to the political
subdivision whose authority is responsible for issuing the advance ruling. One half of the
revenue from costs within the meaning of s ection 178a shall accrue to the Federation, the
other half to the administering political subdivisions. All other ancillary tax payments shall
accrue to the administering political subdivisions.
Section 4
Law
Law shall mean every legal norm.
Section 5
Discretion
Where the revenue authority is authorised to use its discretion it shall do so in compliance
with the purpose of the authorisation and shall respect the statutory restrictions on such
discretion.
Sec tion 6
Authorities, revenue authorities
(1) Authority shall mean every body performing tasks of public administration.
(2) For the purposes of this Code, revenue authorities shall mean the following federal
revenue authorities and revenue authorities of th e Länder referred to in the Fiscal
Administration Act:
1. as highest authorities, the Federal Ministry of Finance and the highest
authorities of the Länder responsible for revenue administration,
2. as higher federal authorities, the Federal Spirits Monopo ly Administration and
the Federal Central Tax Office,
3. as higher authorities of the Länder, data processing centres,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 3 of 140
4. as intermediate authorities, the federal finance offices, the regional finance
offices and Customs Criminological Office,
4a. the reve nue authorities of the Länder established in lieu of a regional finance
office in accordance with the Fiscal Administration Act or with the legislation of the
Länder,
5. as local authorities, the main customs offices including their agencies, the
customs i nvestigation offices, the tax offices and the special revenue authorities of the
Länder,
6. child benefit disbursement offices,
7. the central agency within the meaning of s ection 81 of the Income Tax Act, and
8. the German Pension Insurance Institute for Miners, Railway and Maritime
Workers, Cottbus administration office (s ection 40a(6) of the Income Tax Act).
Section 7
Public officials
Public official shall mean any person who, under German law,
1. is a civil servant or judge (s ection 11(1) number 3 of th e Criminal Code),
2. holds any other office under public law, or
3. has otherwise been appointed to exercise functions of the public administration
at an authority or other office or on their behalf.
Section 8
Residence
Persons shall be resident at the pla ce at which they maintain a dwelling under circumstances
from which it may be inferred that they will maintain and use such dwelling.
Section 9
Habitual abode
Persons shall have their habitual abode at the place at which they are present under
circumstance s indicating that their stay at that place or in that area is not merely temporary.
An unbroken stay of not less than six months’ duration shall be invariably and from the
beginning of such stay regarded as an habitual abode in the territory of application of this
Code; brief interruptions shall be excepted. The second sentence shall not apply where the
stay is undertaken exclusively for visiting, recuperation, curative or similar private purposes
and does not last more than one year.
Section 10
Business ma nagement
Business management shall mean the centre of commercial executive management.
Section 11
Registered office
Corporations, associations of persons or conglomerations of assets shall have their
registered office at the place which is determined by la w, articles of partnership, statutes,
acts of foundation or similar provisions.
Section 12
Permanent establishment
Permanent establishment shall mean any fixed place of business or facility serving the
business of an enterprise. In particular, the followin g shall be considered permanent
establishments:

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 4 of 140
1. the place of business management,
2. branches,
3. offices,
4. factories or workshops,
5. warehouses,
6. purchasing offices or sales outlets,
7. mines, quarries or other stationary, moving or floating facil ities for the
exploitation of natural resources,
8. building sites or constructions or installation projects, including those moving or
floating, where
a) an individual building site or construction or installation project, or
b) one of several coexistent building sites or constructions or installation
projects, or
c) a number of immediately successive building sites or constructions or
installation projects
last(s) more than six months.
Section 13
Permanent representative
Permanent representative shall mea n any person who conducts the business of an
enterprise in a sustained manner and, in so doing, is subject to its instructions. In particular,
permanent representative shall mean any person who, in a sustained manner, on behalf of
an enterprise,
1. conclud es or brokers contracts or solicits orders, or
2. maintains a stock of goods or merchandise and makes deliveries from this
stock.
Section 14
Economic activity
Economic activity shall mean an independent sustainable activity from which revenue or
other econ omic benefits are derived and which comprises more than mere asset
management. The intention to realise a profit shall not be required. As a rule, an activity shall
be deemed to constitute asset management where assets are utilised, e.g., by investing
capi tal assets to earn interest or by renting or leasing immovable property.
Section 15
Relatives
(1) Relatives shall mean:
1. fiancé(e)s,
2. spouses,
3. relations by blood or by marriage in direct line,
4. siblings,
5. children of siblings,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 5 of 140
6. spouses of sibl ings, and siblings of spouses,
7. siblings of the parents,
8. persons who are related to each other like parents and children through a
permanent foster relationship involving a common household (foster parents and foster
children).
(2) The persons referre d to in subs ection (1) above shall also be relatives where,
1. in the case of numbers 2, 3 and 6, the marriage establishing the relationship no
longer exists,
2. in the case of numbers 3 to 7, the relationship by blood or by marriage has been
terminated du e to adoption as a child,
3. in the case of number 8, the common household no longer exists, provided that
the persons continue to be related to each other like parents and children.
Third Chapter
Competence of the revenue authorities
Section 16
Subject -ma tter jurisdiction
Unless otherwise stipulated, the subject -matter jurisdiction of the revenue authorities shall be
determined pursuant to the Fiscal Administration Act.
Section 17
Local jurisdiction
Unless otherwise stipulated, local jurisdiction shall be determined by the following provisions.
Section 18
Separate determination
(1) The following shall have local jurisdiction with regard to separate determination pursuant
to s ection 180:
1. in the case of agricultural and forestry undertakings, real property , business
premises and mineral exploitation rights, the tax office in whose district the undertaking,
real property, business premises or mineral exploitation right is located or, if the
undertaking, real property, business premises or mineral exploitatio n right extends over
the districts of several tax offices, the tax office in whose district the most valuable part is
located (tax office of location),
2. in the case of commercial undertakings whose business management is located
within the territory of a pplication of this Code, the tax office in whose district the business
management is located, in the case of commercial undertakings whose business
management is not located within the territory of application of this Code, the tax office in
whose district a permanent establishment – in the case of several permanent
establishments, the economically most important one – is maintained (tax office of the
undertaking),
3. in the case of income from independent personal services, the tax office from
whose distri ct the activity is predominantly performed,
4. in the case of several persons participating in income other than income from
agriculture or forestry, commercial undertakings or independent personal services
determined separately pursuant to s ection 180(1) number 2(a), the tax office in whose
district this income is managed or, where this cannot be determined within the territory of
application of this Code, the tax office in whose district the most valuable part of the
assets yielding the shared income is l ocated. This shall also apply mutatis mutandis in

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 6 of 140
the case of separate determination pursuant to s ection 180(1) number 3 or
section 180(2).
(2) Where separate determination is to be conducted with regard to several taxpayers and
local jurisdiction cannot b e determined pursuant to subs ection (1) above, every tax office
which, pursuant to s ections 19 or 20, is responsible for taxes on income and on capital of a
taxpayer to whom a share of the object of determination is attributable shall have local
jurisdicti on. Where because of an ordinance pursuant to s ection 17(2), third and fourth
sentence, of the Fiscal Administration Act this tax office does not have subject -matter
jurisdiction with regard to separate determination, the tax office with subject -matter
jur isdiction shall take its place.
Section 19
Taxes on the income and capital of natural persons
(1) The tax office in whose district a natural person is resident or, in the absence of a
residence, has his habitual abode shall have local jurisdiction over the taxation of the
person’s income and capital (tax office of residence). In the case of multiple residences
within the territory of application of this Code, the residence at which the taxpayer is
predominantly present shall be decisive; in the case of mult iple residences of a married
taxpayer not permanently separated from his spouse, the residence at which the family is
predominantly present shall be decisive. W ith regard to persons subject to unlimited tax
liability pursuant to s ection 1(2) of the Income Tax Act and s ection 1(2) of the Capital Tax
Act, local jurisdiction shall lie with the tax office in whose district the paying public fund is
located; the same shall apply in the cases referred to in s ection 1(3) of the Income Tax Act
with regard to person s fulfilling the requirements of s ection 1(2), first sentence, numbers 1
and 2 of the Income Tax Act, as well as in the cases referred to in s ection 1a(2) of the
Income Tax Act.
(2) Where the requirements referred to in subs ection (1) above are not fulfill ed, local
jurisdiction shall lie with the tax office in whose district the assets of the taxpayer are located,
and where this applies to several tax offices, the tax office in whose district the most valuable
part of the assets is located. Where the taxpay er does not have any assets within the
territory of application of this Code, the tax office in whose district the activity is or has been
predominantly performed or exploited within the territory of application of this Code shall
have local jurisdiction.
(3) Notwithstanding the provisions of subs ection (1) above, where there are several tax
offices in the municipality of residence and where a taxpayer with income from agriculture or
forestry, a commercial undertaking or professional services performs this activity within the
municipality of residence but in the district of a tax office other than the tax office of
residence, the first tax office shall be responsible where it would have been competent for
the separate determination of this income pursuant to section 18(1) numbers 1, 2 or 3. In
applying the first sentence of this subsection, income from profit shares shall be taken into
account only where it is the sole income of the taxpayer within the meaning of the first
sentence.
(4) In applying subs ection (3) above, taxpayers who must be or may be assessed jointly
shall be treated as if their income were derived by a single taxpayer.
(5) The governments of the Länder may stipulate by way of ordinance that an area
comprising several municipalities shall be considered a municipality of residence within the
meaning of subs ection (3) above insofar as this seems appropriate considering the
economic situation, transport infrastructure, the structure of administrative authorities or
other local needs. The governme nt of a Land may delegate these powers to the highest
authority of this Land responsible for revenue administration.
(6) In order to guarantee the taxation of persons subject to limited tax liability pursuant to
section 1(4) of the Income Tax Act and deriv ing income within the meaning of s ection 49(1)
numbers 7 and 10 of the Income Tax Act, the Federal Ministry of Finance may, by way of
ordinance and with the consent of the Bundesrat, transfer to a revenue authority local

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 7 of 140
jurisdiction with regard to the ter ritory of application of this Code. The first sentence above
shall also apply where an application pursuant to s ection 1(3) of the Income Tax Act is
made.
Section 20
Taxes on the income and capital of corporations, associations of persons and
conglomeratio ns of assets
(1) Local jurisdiction over the taxation of the income and capital of corporations, associations
of persons and conglomerations of assets shall lie with the tax office in whose district the
business management is located.
(2) Where the busines s management is not located within the territory of application of this
Code or where the place of business management cannot be determined, the tax office in
whose district the taxpayer has its registered office shall have local jurisdiction.
(3) Where ne ither the business management nor the registered office is located within the
territory of application of this Code, local jurisdiction shall lie with the tax office in whose
district assets of the taxpayer are located and, if this applies to several tax o ffices, the tax
office in whose district the most valuable part of the assets is located.
(4) Where neither the business management nor the registered office or assets of the
taxpayer are located within the territory of application of this Code, the tax of fice in whose
district the activity is or has been predominantly performed or exploited within the territory of
application of this Code shall have local jurisdiction.
Section 20a
Taxes on income in the case of construction services
(1) Notwithstanding the provisions of s ections 19 and 20, jurisdiction with regard to the
taxation of enterprises providing construction services within the meaning of s ection 48(1),
third sentence, of the Income Tax Act shall lie with the tax office responsible for the taxation
of the corresponding turnover pursuant to s ection 21(1) if the trader’s residence or the
enterprise’s business management or registered office is not located within the territory of
application of this Code. Notwithstanding s ections 38 to 42f of the Incom e Tax Act, this shall
also apply with regard to tax deduction on wages.
(2) Where workers are provided for temporary employment by foreign suppliers pursuant to
section 38(1), first sentence, number 2 of the Income Tax Act, the tax office responsible for
the taxation of the corresponding turnover pursuant to s ection 21(1) shall be responsible for
administering wages tax. The first sentence shall only apply where the person hired out is
employed in the construction industry.
(3) Notwithstanding the provision s of s ection 19, the Federal Ministry of Finance may, by
way of ordinance and with the consent of the Bundesrat, transfer to a tax office local
jurisdiction for the territory of application of this Code over the taxation of persons employed
in Germany by e nterprises within the meaning of subs ection (1) or (2) above.
Section 21
Valued -added tax
(1) The tax office in whose district the trader entirely or predominantly operates his
enterprise in the territory of application of this Code shall have jurisdiction over VAT,
excluding import VAT. In order to ensure taxation, the Federal Ministry of Finance may, by
way of ordinance and with the consent of the Bundesrat, transfer to a revenue authority local
jurisdiction for the territory of application of this Code w ith regard to traders whose residence,
registered office or business management is not located within the territory of application of
this Code.
(2) The tax office responsible for the taxation of income (s ections 19 and 20) shall have
jurisdiction over the VAT of persons who are not traders; in the cases referred to in
section 180(1) number 2(a), the tax office responsible for separate determination
(section 18) shall also be responsible for VAT.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 8 of 140
Section 22
Impersonal taxes
(1) Local jurisdiction over the a ssessment and apportionment of basic impersonal tax
amounts shall lie with the tax office of location (s ection 18(1) number 1) in the case of real
property tax, and with the tax office of the undertaking (s ection 18(1) number 2) in the case
of trade tax. Notwithstanding the provisions of the first sentence of this subsection,
jurisdiction over the assessment and apportionment of basic trade tax amounts in the case of
enterprises providing construction services within the meaning of s ection 48(1), third
sen tence, of the Income Tax Act shall lie with the tax office responsible for the taxation of the
corresponding turnover pursuant to s ection 21(1), provided that the trader’s residence or the
enterprise’s business management or registered office is located ou tside the territory of
application of this Code.
(2) Where the tax offices are responsible for assessing, levying and recovering impersonal
taxes, local jurisdiction shall lie with the tax office to whose district the municipality
authorised to apply the m unicipal multiplier belongs. Where a municipality authorised to
apply the municipal multiplier belongs to the districts of several tax offices, local jurisdiction
shall lie with the tax office which is or would be responsible pursuant to subs ection (1) abo ve
if only the parts of the enterprise, real property or business premises located in the
municipality authorised to apply the municipal multiplier were present in the territory of
application of this Code.
(3) Subs ection (2) above shall apply mutatis muta ndis where a Land is entitled to the tax
revenue from impersonal taxes pursuant to Article 106(6), third sentence, of the Basic Law.
Section 23
Import and export duties, excise duties
(1) Local jurisdiction over import and export duties within the meaning of Article 4 numbers
10 and 11 of the Customs Code and over excise duties shall lie with the main customs office
in whose district the matter to which the respective law attaches the duty occurs.
(2) Local jurisdiction shall further lie with the main custo ms office from whose district the
taxpayer operates his enterprise. Where the enterprise is operated from a location outside
the territory of application of this Code, jurisdiction shall lie with the main customs office in
whose district the trader entirel y or predominantly carries out his transactions in the territory
of application of this Code.
(3) Where import and export duties within the meaning of Article 4 numbers 10 and 11 of the
Customs Code and excise duties are due in conn ection with a tax crime or tax offence, local
jurisdiction shall lie with the main customs office responsible for the crime or offence.
Section 24
Surrogate competence
Where local jurisdiction cannot be derived from other provisions, the revenue authority in
whose district the ma tter requiring the official act arises shall be responsible.
Section 25
Multiple local jurisdiction
Where several revenue authorities have jurisdiction, the revenue authority which was first
charged with the matter shall decide unless the revenue authoriti es responsible agree on
another revenue authority responsible or the common supervisory authority responsible
determines that another revenue authority with local jurisdiction should decide. In the
absence of a common supervisory authority, the supervisory authorities responsible shall
reach a joint decision.
Section 26
Transfer of jurisdiction
Where local jurisdiction is transferred from one revenue authority to another due to a change
in the circumstances establishing such jurisdiction, the transfer of ju risdiction shall occur as

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 9 of 140
soon as one of the two revenue authorities becomes aware of this. The hitherto responsible
revenue authority may continue with an administrative procedure where this serves to
ensure that the procedure is carried out simply and ap propriately while protecting the
interests of the participants, and provided that the newly responsible revenue authority
agrees. There shall be no transfer of jurisdiction pursuant to the first sentence above as long
as
1. a decision has not yet been take n on an insolvency petition,
2. open insolvency proceedings have not yet been cancelled, or
3. an unincorporated company or a legal person is undergoing liquidation.
Section 27
Agreed jurisdiction
In mutual agreement with the revenue authority which has lo cal jurisdiction pursuant to the
provisions of the tax laws, a different revenue authority may assume responsibility for
taxation, provided that the person concerned agrees. One of the revenue authorities referred
to in the first sentence of this s ection may ask the person concerned to declare his approval
within a reasonable period of time. Approval shall be deemed to have been given if the
person concerned does not object within this period of time. The person concerned shall be
explicitly advised of the consequences of remaining silent.
Section 28
Disputed jurisdiction
(1) Where several revenue authorities consider themselves to have jurisdiction or not to have
jurisdiction, or where jurisdiction is doubtful for other reasons, the common supervisory
autho rity responsible shall decide on local jurisdiction. S ection 25, second sentence, shall
apply accordingly.
(2) S ection 5(1) number 7 of the Fiscal Administration Act shall remain unaffected.
Section 29
Imminent danger
In the case of imminent danger, local jurisdiction for non -deferrable measures shall lie with
any revenue authority in whose district the matter requiring the official act arises. The
authority otherwise locally responsible shall be informed without undue delay.
Fourth Chapter
Tax secrecy
Sect ion 30
Tax secrecy
(1) Public officials shall be obliged to observe tax secrecy.
(2) Public officials shall be in breach of tax secrecy if they
1. disclose or make use of, without authorisation, circumstances of a third person
which have become known to th em
a) in an administrative procedure, an auditing procedure or in judicial
proceedings in tax matters,
b) in criminal proceedings for tax crimes or in administrative fine proceedings
for tax offences,
c) for other reasons from notification by a revenue aut hority or from the
statutory submission of a tax assessment notice or a certification of findings
made in the course of taxation,
or

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 10 of 140
2. disclose or make use of, without authorisation, a corporate or commercial secret
which has become known to the them in a procedure as designated under number 1
above,
or
3. electronically retrieve, without authorisation, data protected pursuant to number
1 or 2 above which have been stored in a file for a procedure as designated under
number 1 above.
(3) The following shal l be deemed to be of equivalent status to public officials:
1. persons under special obligations to the civil service (s ection 11(1) number 4 of
the Criminal Code),
1a. the persons designated in s ection 193(2) of the Act on the Constitution of
Courts,
2. officially consulted experts,
3. holders of offices of the churches and other religious communities being public –
law entities.
(4) Disclosure of information obtained pursuant to subs ection (2) above shall be permissible,
insofar as
1. it serves the implemen tation of a procedure within the meaning of
subs ection (2) number 1(a) and (b) above,
2. it is expressly permitted by law,
3. the persons concerned give their consent,
4. it serves the implementation of criminal proceedings for a crime other than a tax
cri me, and such information
a) was obtained in the course of proceedings for tax crimes or tax offences;
however, this shall not apply in relation to facts which a taxpayer has disclosed
while unaware of the instigation of the criminal proceedings or the admi nistrative
fine proceedings or which have already become known in the course of taxation
before the instigation of such proceedings, or
b) was obtained in the absence of any tax liability or by waiver of a right to
withhold information,
5. there is a compe lling public interest in such disclosure; such compelling public
interest shall be deemed to exist in particular where
a) crimes and wilful serious offences against life and limb or against the State
and its institutions are being or are to be prosecuted,
b) economic crimes are being or are to be prosecuted, and which in view of the
method of their perpetration or the extent of the damage caused by them are
likely to disrupt substantially the economic order or to undermine substantially
general confidence i n the integrity of business dealings or the orderly functioning
of authorities and public institutions, or
c) disclosure is necessary to correct publicly disseminated incorrect facts which
are likely to undermine substantially confidence in the administrat ion; such
decision shall be taken by the highest revenue authority responsible in mutual

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 11 of 140
agreement with Federal Ministry of Finance; the taxpayer is to be heard before
corr ection of the facts.
(5) Wilfully false statements by the person concerned may be di sclosed to the law
enforcement authorities.
(6) The electronic retrieval of data which have been stored for a procedure as designated
under subs ection (2) number 1 above shall be permissible only insofar as it serves the
implementation of a procedure withi n the meaning of subs ection (2) number 1(a) and (b)
above or the permissible transmission of data. To protect tax secrecy, the Federal Ministry of
Finance may stipulate, by way of ordinance and subject to the consent of the Bundesrat,
which technical and o rganisational measures are to be adopted to preclude the unauthorised
retrieval of data. In particular, it may set out detailed rules on the type of data, the retrieval of
which is permissible, and on the group of public officials entitled to retrieve such data.
Ordinances shall not require the agreement of the Bundesrat where they concern
import/export duties and excise duties, with the exception of beer duty.
Section 30a
Prot ection of bank customers
(1) In determining the facts of a case (s ection 88) the revenue authorities shall take special
account of the confidential relationship between credit institutions and their customers.
(2) The revenue authorities may not require credit institutions to submit non -recurrent or
regular notifications with regard to accounts of specific types or specific amounts for general
supervisory purposes.
(3) Deposit accounts or securities accounts in relation to which an identity check pursuant to
section 154(2) has been carried out may not on occasion of the external audit o f a credit
institution be identified or copied for the purpose of verifying correct payment of taxes. No
tax -audit tracer notes shall be prepared in respect of such accounts.
(4) The numbers of deposit and securities accounts which taxpayers hold at credit
institutions shall not be required in tax return forms, unless tax -reducing expenses or
benefits are being claimed or it is required for the settlement of payment transactions with
the tax office.
(5) Requests for information addressed to credit instituti ons shall be governed by s ection 93.
Where the identity of a taxpayer is known and neither proceedings for a tax crime nor for a
tax offence have been instigated against such person, a credit institution shall, even in
proceedings pursuant to the first sen tence of s ection 208(1), only be requested to furnish
information and documents when a request for information addressed to the taxpayer does
not or is not likely to produce any results.
Section 31
Disclosure of the bases of taxation
(1) The revenue author ities shall be obliged to disclose to public -law entities, including
religious communities which are public -law entities, bases of taxation, basic impersonal tax
amounts and other tax amounts for the purpose of assessing such levies connected with
these ba ses of taxation, basic impersonal tax amounts or other tax amounts. The obligation
to disclose shall not apply insofar as this would involve a disproportionate amount of time
and effort. Upon request, the revenue authorities may disclose to public -law enti ties the
names and addresses of their members who are obliged, in principle, to pay levies within the
meaning of the first sentence above as well as the duties assessed by the revenue authority
with regard to the entity, insofar as knowledge of these data is necessary for the discharge of
public tasks falling within the entity’s responsibility and such disclosure is not outweighed by
protectable interests of the person concerned.
(2) The revenue authorities shall be obliged to disclose the circumstances of the persons
concerned which are protected under s ection 30 to the statutory social insurance institutions,
the Federal Employment Agency and the Artists’ Social Fund, insofar as knowledge of these
circumstances is necessary to determine the insurance oblig ation or to assess contributions,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 12 of 140
including the insurance contributions of artists, or where the person concerned submits an
application for disclosure. The obligation to disclose shall not apply to the extent that this
would involve a disproportionate amo unt of time and effort.
(3) The names and addresses of owners of real property which have become known through
the administration of real property tax and which are protected under s ection 30 may be
used by the authorities responsible for administering rea l property tax for the administration
of other fiscal charges and for the discharge of other public tasks or may be disclosed by
those authorities on request to the responsible courts, authorities or legal persons under
public law, unless such use or discl osure is outweighed by protectable interests of the
person concerned.
Section 31a
Disclosure for the purpose of countering unlawful employment and the
misappropriation of benefits
(1) Disclosure of the circumstances of the person concerned which are protec ted under
section 30 shall be permissible insofar as this is necessary
1. to implement criminal proceedings, administrative fine proceedings or any other
court or administrative proceedings with the aim of
a) countering unlawful employment or illegal work, or
b) deciding whether
aa) a licence under the Temporary Employment Act should be issued,
withdrawn or revoked, or
bb) benefits paid from public funds should be approved, granted,
recovered, refunded, continued to be granted or allowed to be retained,
or
2. to assert a claim for repayment of benefits paid from public funds.
(2) In the cases referred to in subs ection (1) above, the revenue authorities shall be obliged
to disclose to the competent body the facts required in each case. In the cases referred t o in
subs ection (1) numbers 1(b) and 2 above, information shall also be disclosed upon
application by the person concerned. The obligation to disclose referred to in the first and
second sentence of this subs ection shall not apply insofar as this would inv olve a
disproportionate amount of time and effort.
Section 31b
Disclosure for the purpose of countering money laundering and terrorist financing
The disclosure of the circumstances of the person concerned which are protected under
section 30 shall be permi ssible insofar as it serves the implementation of criminal
proceedings for a crime under s ection 261 of the Criminal Code, the countering of terrorist
financing within the meaning of s ection 1(2) of the Money Laundering Act or the
implementation of adminis trative fine proceedings within the meaning of s ection 17 of the
Money Laundering Act against obligated parties within the meaning of s ection 2(1) numbers
9 to 12 of the Money Laundering Act. Irrespective of the amount or business relationship
involved, th e revenue authorities shall notify without undue delay the Financial Intelligence
Unit of the Federal Criminal Police Office and the competent law enforcement authority
orally, by telephone, fax or via electronic data transmission where facts exist to indi cate that
the assets connected with a transaction or business relationship are the object of a crime
under s ection 261 of the Criminal Code or the assets are connected to terrorist financing.
The competent administrative authority shall be notified without undue delay of facts
suggesting that an administrative offence within the meaning of s ection 17 of the Money

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 13 of 140
Laundering Act has been or will be committed by an obligated party within the meaning of
section 2(1) numbers 9 to 12 of the Money Laundering Act.
Fifth Chapter
Limited liability of public officials
Section 32
Limited liability of public officials
Where a breach of official duty by a public official results in
1. a tax or ancillary tax payment not being assessed, levied or recovered at all or
on tim e, or the amount assessed, levied or recovered being too low, or
2. a tax refund or tax rebate being incorrectly granted, or
3. a basis of taxation or a tax share not being assessed at all or on time or the
amount assessed being too low,
the public officia l may be held liable only if the breach of official duty is punishable by law.
Second Part
Legal provisions on tax liability
First Chapter
Taxpayer
Section 33
Taxpayer
(1) Taxpayer shall mean any person who owes a tax, is liable for a tax, who is obliged t o
withhold and give to revenue authorities a tax which is due for account of a third party, to file
a tax return, to provide collateral, to keep accounts and records or to discharge other
obligations imposed by the tax laws.
(2) Taxpayer shall not mean a p erson who is obliged with regard to tax matters of a third
person to provide information, to produce documents, to submit an expert opinion or to
authorise entry to properties, business premises and offices.
Section 34
Obligations of legal representatives and asset managers
(1) The legal representatives of natural and legal persons, and the managing directors of
associations of persons and conglomerations of assets without legal capacity shall fulfil the
tax obligations of these entities. In particular, the y shall ensure that taxes are paid from the
funds they manage.
(2) To the extent that associations of persons without legal capacity do not have a managing
director, their members or partners shall fulfil the duties within the meaning of subs ection (1)
abo ve. Any member or partner may be held liable by the revenue authority. The first and
second sentences above shall apply to conglomerations of assets without legal capacity
subject to the proviso that the persons entitled to the assets fulfil the tax obliga tions.
(3) Where persons other than the owners of the assets or their legal representatives are
responsible for asset management, the asset managers shall, within their management
competence, have the obligations referred to in subs ection (1) above.
Sectio n 35
Obligations of the person with power of disposal
Persons with power of disposal acting on their own behalf or on behalf of a third party shall
have the obligations of a legal representative (s ection 34(1)) to the extent that they are able
to fulfil th em de jure and de facto.
Section 36
Termination of the authority to represent

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 14 of 140
Termination of the authority to represent or of the power of disposal shall not affect the
obligations pursuant to s ections 34 and 35 to the extent that these apply to the period in
which the authority to represent or the power of disposal was valid and that the person
obliged is able to fulfil them.
Second Chapter
Tax debtor -creditor relationship
Section 37
Claims arising from the tax debtor -creditor relationship
(1) Claims arisi ng from the tax debtor -creditor relationship shall be the tax claim, the tax
rebate claim, the liability claim, the claim to an ancillary tax payment, the refund claim
pursuant to subs ection (2) below and the tax refund claims set out in individual tax law s.
(2) Where a tax, a tax rebate, a liability amount or an ancillary tax payment was paid or
repaid in the absence of legal grounds, the person on whose account the payment was
made shall be entitled to a refund from the recipient of the amount paid or rep aid. This shall
also apply where the legal grounds for the payment or repayment are subsequently
abolished. In the case of cession, pledging or seizure, the claim may also be asserted
against the person ceding, the pledger or the execution debtor.
Section 38
Arising of claims from the tax debtor -creditor relationship
Claims shall arise from the tax debtor -creditor relationship as soon as the matter to which the
law attaches liability for payment has occurred.
Section 39
Attribution
(1) Economic goods shall be attributable to the owner.
(2) Notwithstanding the provisions of subs ection (1) above, the following provisions shall
apply:
1. Where a person other than the owner exercises effective control over an
economic good in such a way that he can, as a rule, e conomically exclude the owner
from affecting the economic good during the normal period of its useful life, the economic
good shall be attributable to this person. In the case of fiduciary relationships, the
economic goods shall be attributable to the bene ficiary, in the case of transferred
ownerships for security purposes to the security provider, and in the case of proprietary
possessions to the proprietary possessor.
2. Economic goods to which several persons are jointly entitled shall be
attributable pr oportionally to the participants insofar as taxation requires separate
attribution.
Section 40
Actions contrary to law or public policy
It shall be immaterial for taxation when an action that is completely or partly taxable violates
a statutory regulation or prohibition or is contrary to public policy.
Section 41
Invalid legal transactions
(1) Where a legal transaction is or becomes invalid this shall be immaterial for taxation to the
extent that and as long as the persons involved nevertheless allow the ec onomic outcome of
this legal transaction to occur and to remain. This shall not apply where the tax laws provide
otherwise.
(2) Fictitious transactions and actions shall be immaterial for taxation. Where a fictitious
transaction conceals another legal tran saction, the concealed legal transaction shall be
decisive for taxation.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 15 of 140
Section 42
Abuse of tax planning schemes
(1) It shall not be possible to circumvent tax legislation by abusing legal options for tax
planning schemes. Where the element of an individu al tax law’s provision to prevent
circumventions of tax has been fulfilled, the legal consequences shall be determined
pursuant to that provision. Where this is not the case, the tax claim shall in the event of an
abuse within the meaning of subs ection (2) below arise in the same manner as it arises
through the use of legal options appropriate to the economic transactions concerned.
(2) An abuse shall be deemed to exist where an inappropriate legal option is selected which,
in comparison with an appropriate option, leads to tax advantages unintended by law for the
taxpayer or a third party. This shall not apply where the taxpayer provides evidence of non –
tax reasons for the selected option which are relevant when viewed from an overall
perspective.
Section 43
Tax debtor, creditor of a tax rebate
Tax legislation shall stipulate the tax debtor or creditor of a tax rebate. It shall also stipulate
whether a third party is to pay the tax for account of the tax debtor.
Section 44
Joint and several debtors
(1) Perso ns who concurrently owe or are liable for the same obligation arising from the tax
debtor -creditor relationship or who must be assessed jointly shall be joint and several
debtors. Unless otherwise stipulated, each joint and several debtor shall owe the ent ire
obligation.
(2) Fulfilment by a joint and several debtor shall also take effect for the other debtors. The
same shall apply to the set -off and any securities provided. Other facts shall only take effect
for and against the joint and several debtor pers onally affected by them. The provisions of
sections 268 to 280 with regard to the limitation of enforcement in the case of joint
assessment shall remain unaffected.
Section 45
Universal succession
(1) In the case of universal succession the debts and recei vables arising from the tax debtor –
creditor relationship shall pass to the legal successor. However, in the case of succession by
inheritance this shall not apply to coercive fines.
(2) Heirs shall be liable for debts payable from the estate pursuant to th e provisions of civil
law with regard to the heir’s liability for obligations of the estate. Provisions creating a tax
liability of the heirs shall remain unaffected.
Section 46
Cession, pledging, seizure
(1) Entitlements to the refund of taxes, liability amounts, ancillary tax payments and tax
rebates may be ceded, pledged and seized.
(2) However, the act of cession shall take effect only once the creditor declares it after the
claim has arisen to the competent revenue authority in the form set out in subs ection (3)
below.
(3) The act of cession shall be notified to the competent revenue authority on an officially
prescribed form, indicating the person ceding, the beneficiary of cession, the nature and
amount of the entitlement ceded and the reason for cess ion. The notification shall be signed
by the person ceding and the beneficiary of cession.
(4) The commercial acquisition of claims to refunds or rebates for the purpose of coll ection or
other liquidation for own account shall not be permissible. This shal l not apply in the case of
cession for security purposes. Only enterprises authorised to conduct bank business shall be
entitled to commercially acquire or collect claims ceded for security purposes.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 16 of 140
(5) Where the act of cession has been notified to the re venue authority, the person ceding
and the beneficiary of cession shall be obliged to accept the validity of the notified cession in
relation to the revenue authority even if such cession does not occur or is ineffective or is
void due to contravention of subs ection (4) above.
(6) An attachment and transfer order or an attachment and sequestration order may not be
issued before the claim has arisen. Any attachment and transfer orders or attachment and
sequestration orders obtained in breach of this prohibit ion shall be void. The provisions of
subs ections (2) to (5) above shall be applied mutatis mutandis to pledging.
(7) In the case of attachments of claims to refunds or rebates, the revenue authority which
decided or must decide on the claim shall be deemed to be the third party debtor within the
meaning of s ections 829 and 845 of the Code of Civil Procedure.
Section 47
Expiration
Claims arising from the tax debtor -creditor relationship shall expire, in particular, through
payment (s ections 224, 224a and 225 ), set -off (s ection 226), remission (s ections 163 and
227), termination of a limitation period (s ections 169 to 171 and 228 to 232) and due to
fulfilment of the condition where claims are subject to a condition subsequent.
Section 48
Payment by third parti es, liability of third parties
(1) Payments to the revenue authority arising from the tax debtor -creditor relationship may
also be effected by third parties.
(2) Third parties may contractually agree to guarantee payments within the meaning of
subs ection (1) above.
Section 49
Missing persons
When a person is missing and presumed dead, the day at the close of which the decision on
the declaration of death of the missing person becomes final and incontestable shall be
deemed the day of death for taxation purp oses.
Section 50
Expiration and unconditionality of excise duty, transfer of the conditional excise duty
debt
(1) Where a tax privilege is granted pursuant to excise duty laws and subject to the condition
that goods liable to excise duty must be used for a special purpose, the duty shall expire
completely or partly in accordance with the relief as soon as the condition is fulfilled or where
the goods perish without the tax having previously become unconditional.
(2) The conditional tax debt shall be transfe rred to the eligible acquirer if the goods are
passed on to him for the intended purpose by the tax debtor before the condition has been
fulfilled.
(3) The duty shall become unconditional
1. where the goods are used contrary to the intended purpose or cann ot be used
anymore for this purpose. Where it is impossible to determine the whereabouts of the
goods, they shall be considered as not having been used for the intended purpose,
unless the beneficiary provides evidence to the contrary,
2. in other cases st ipulated by law.
Third Chapter
Tax -privileged purposes
Section 51
General

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 17 of 140
(1) The following provisions shall apply where the Code grants tax privileges to a corporation
on account of its serving directly and exclusively public -benefit, charitable or religi ous
purposes (tax -privileged purposes). A corporation shall be understood to mean a
corporation, association of persons or conglomeration of assets within the meaning of the
Corporation Tax Act. Functional subdivisions (departments) of corporations shall n ot be
treated as independent taxable entities.
(2) Where the tax -privileged purposes are achieved abroad, the tax privilege shall be
conditional upon natural persons who have their residence or their habitual abode within the
territory of the application o f this Code being advanced or the activity of the corporation,
alongside achieving the tax -privileged purposes, also being able to contribute to the
reputation of the Federal Republic of Germany abroad.
(3) A tax privilege shall furthermore require that th e corporation does not, pursuant to its
statutes and in its actual management, advance efforts within the meaning of s ection 4 of the
Federal Constitution Prot ection Act and does not contravene the concept of international
understanding. In the case of cor porations which are listed in the Federation’s or a Land’s
report on the prot ection of the constitution as an extremist organisation, it shall be refutably
assumed that the conditions of the first sentence above are not fulfilled. The revenue
authority sha ll inform the authority responsible for the prot ection of the constitution of facts
substantiating the suspicion that efforts within the meaning of s ection 4 of the Federal
Constitution Prot ection Act or contraventions of the concept of international under standing.
Section 52
Public -benefit purposes
(1) A corporation shall serve public -benefit purposes if its activity is dedicated to the altruistic
advancement of the general public in material, spiritual or moral respects. It shall not be
deemed an advancem ent of the general public if the group of persons benefiting from such
advancement is circumscribed, for instance by membership of a family or the workforce of an
enterprise, or can never be other than small as a result of its definition, especially in ter ms of
geographical or professional attributes. Advancement of the general public may not be
contended merely because a corporation allocates its funds to a public -law entity.
(2) Subject to the provisions of subs ection (1) above, the following shall be rec ognised as
advancement of the general public:
1. the advancement of science and research;
2. the advancement of religion;
3. the advancement of public health and of public hygiene, in particular the
prevention and control of communicable diseases, also by hospitals within the meaning of
section 67, and of epizootic diseases;
4. the advancement of assistance to young and old people;
5. the advancement of art and culture;
6. the advancement of the prot ection and preservation of historical monuments;
7. the advancement of upbringing, adult education and vocational training
including assistance for students;
8. the advancement of nature conservation and of landscape management within
the meaning of the Federal Nature Conservation Act and the nature conservatio n acts of
the Länder, of environmental protection, of coastal defence and of flood defence;
9. the advancement of public welfare, in particular of the purposes of the officially
recognised voluntary welfare associations (s ection 23 of the VAT Implementing
Ordinance), their subsidiary associations and their affiliated organisations and institutions;

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 18 of 140
10. the advancement of relief for people persecuted on political, racial or religious
grounds, for refugees, expellees, ethnic German repatriates who migrated to the
Germany between 1950 and 1 January 1993, ethnic German repatriates migrating to
Germany after 1 January 1993, war victims, dependents of deceased war victims, war
disabled and prisoners of war, civilian war disabled and people with disabilities as wel l as
relief for victims of crime; the advancement of the commemoration of persecutees, war
and disaster victims; the advancement of the tracing service for missing persons;
11. the advancement of life saving;
12. the advancement of fire prevention, occupat ional health and safety, disaster
control and civil defence as well as of accident prevention;
13. the advancement of internationalism, of tolerance in all areas of culture and of
the concept of international understanding;
14. the advancement of the prot ection of animals;
15. the advancement of development cooperation;
16. the advancement of consumer counselling and consumer protection;
17. the advancement of welfare for prisoners and former prisoners;
18. the advancement of equal rights for women and men ;
19. the advancement of the prot ection of marriage and the family;
20. the advancement of crime prevention;
21. the advancement of sport (chess shall be considered to be a sport);
22. the advancement of local heritage and traditions;
23. the advancement o f animal husbandry, of plant cultivation, of allotment
gardening, of traditional customs including regional carnival, of the welfare of servicemen
and reservists, of amateur radio, of aeromodelling and of dog sports;
24. the general advancement of democrat ic government in the territory of
application of this Code; this shall not include endeavours which are solely in pursuit of
specific individual interests of a civic nature or which are restricted to the local –
government level;
25. the advancement of activ e citizenship in support of public -benefit, charitable or
religious purposes.
To the extent that the purpose pursued by the corporation does not fall under the first
sentence above, but the general public is correspondingly advanced altruistically in mater ial,
spiritual or moral aspects, this purpose may be declared as being for the public benefit. The
highest revenue authorities of the Länder shall each designate a revenue authority within the
meaning of the Fiscal Administration Act which is responsible f or decisions pursuant to the
second sentence above.
Section 53
Charitable purposes
A corporation shall serve charitable purposes if its activity is dedicated to altruistic support
for persons
1. who on account of their physical, mental or emotional state a re dependent upon
the help of others, or

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 19 of 140
2. whose means are not greater than four times the standard rate of social welfare
assistance as defined in s ection 28 of the Social Security Code, Book XII; in the case of a
single person or head of household, five times the standard rate shall apply instead of
four times. This shall not apply to persons whose assets are sufficient to effect a lasting
improvement in their upkeep and who may reasonably be expected to use those assets
for such purpose. In the case of persons whose financial circumstances have been
transformed by special reasons into a state of need, the means or assets may exceed the
stated limits. Means for the purposes of this provision shall be
a) income as defined in s ection 2(1) of the Income Tax Act, and
b) other means destined or suited to the provision of subsistence which the
single person or head of household and other members of the household have at
their disposal.
The means shall not include social welfare payments and maintenance payments pursuant
to the Social Security Code, Book II, and payments up to the level of social welfare to
persons who, in the absence of such maintenance, would be entitled to draw social welfare
or receive maintenance payments pursuant to the Social Security Code, Book II.
Maintenance entitlements shall be taken into account.
Section 54
Religious purposes
(1) A corporation shall serve religious purposes if its activity is dedicated to the altruistic
advancement of a religious community which is a public -law entity.
(2) These purposes shall include, in particular, building, decorating and maintaining houses
of worship and religious community centres, conducting religious services, training priests,
providing religious teaching, conducting burials and safeguarding the remembrance of the
dead, also administering church assets, remunerating members of the clergy, church officials
and servants of the church, and providing old -age and disability pensions for these persons
and their dependants.
Section 55
Altruistic activit y
(1) Advancement or support shall be provided altruistically if it does not primarily serve the
corporation’s own economic purposes, for instance commercial or other gainful purposes,
and the following requirements are met:
1. The funds of the corporation may be used only for the purposes set out in the
statutes. Members or partners (members for the purposes of these provisions) may
receive neither profit shares nor in their capacity as members any other allocations from
the funds of the corporation. The c orporation may use its funds neither for the direct nor
for the indirect advancement or support of political parties.
2. On termination of their membership or on dissolution or liquidation of the
corporation, members may not receive more than their paid -up capital shares and the fair
market value of their contributions in kind.
3. The corporation may not provide a benefit for any person by means of
expenditure unrelated to the purpose of the corporation or disproportionately high
remuneration.
4. Where the corporation is dissolved or liquidated or where its former purpose
ceases to apply, the assets of the corporation in excess of the members’ paid -up capital
shares and the fair market value of their contributions in kind may be used only for tax –
privileged purposes (dedication of assets). This requirement shall also be met if the
assets are to be assigned to another tax -privileged corporation or to a legal person under
public law for tax -privileged purposes.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 20 of 140
5. The corporation shall in principle use its fund s promptly for the tax -privileged
purposes set out in its statutes. The use of funds for the acquisition or manufacture of
assets serving the purposes set out in the statutes shall also constitute an appropriate
use. Funds shall be deemed to have been used promptly where they are used for the tax –
privileged purposes set out in the statutes no later than in the calendar or financial year
following their accrual.
(2) In calculating the fair market value (subs ection (1) numbers 2 and 4 above) the
circumstances prevailing at the time at which the contributions in kind were made shall
apply.
(3) The provisions relating to the members of the corporation (subs ection (1) numbers 1, 2
and 4 above) shall apply in the case of foundations to the donors and their heirs, and, in the
case of undertakings of a commercial nature of legal persons under public law, shall apply
mutatis mutandis to the corporation with the proviso that for assets withdrawn at book value
from business capital pursuant to s ection 6(1) number 4, fou rth sentence, of the Income Tax
Act the book value of the withdrawal replaces the fair market value.
Section 56
Exclusivity
Exclusivity shall be deemed to exist if the sole pursuit of a corporation is the tax -privileged
purposes set out in the statutes.
Section 57
Directness
(1) A corporation shall pursue the tax -privileged purposes set out in the statutes directly if the
corporation itself achieves these purposes. This may also be achieved by aides if, in terms of
the circumstances of the case, in particul ar in terms of the legal and actual relationship
between the corporation and the aide, the activity of the aide is to be regarded as activity by
the corporation itself.
(2) A corporation in which tax -privileged corporations are combined shall be deemed
equ ivalent to a corporation directly pursuing tax -privileged purposes.
Section 58
Activities having no detrimental effect on tax privilege
Tax -privileged status shall not be precluded by
1. a corporation procuring funds for the achievement of the tax -privileg ed
purposes of another corporation or for the achievement of tax -privileged purposes by a
legal person under public law; the procurement of funds for a private corporation subject
to unlimited tax liability shall be conditional upon that corporation itself having tax –
privileged status,
2. a corporation assigning part of its funds to another tax -privileged corporation or
to a legal person under public law to be used for tax -privileged purposes,
3. a corporation making available its workforce to other persons , enterprises,
organisations or a legal person under public law for tax -privileged purposes,
4. a corporation making available premises belonging to it to another tax -privileged
corporation or a legal person under public law to be used for tax -privileged p urposes,
5. a foundation using a part not exceeding one third of its income for the
appropriate upkeep of the donor and his or her near relatives, to maintain their graves
and to honour their memory,
6. a corporation transferring all or part of its funds t o a reserve, provided that this
is necessary to enable it to conduct the sustained pursuit of the tax -privileged purposes
set out in the statutes,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 21 of 140
7.
a) a corporation transferring to a voluntary reserve not more than one third of
the excess of revenue over asset management expenses and additionally not
more than ten per cent of its other funds destined for prompt use pursuant to
section 55(1) number 5,
b) a corporation accumulating or using in the year of accrual funds to acquire
partnership rights to maint ain the percentage share of investments in
incorporated companies; these amounts shall be credited to the reserves
permissible in the same year or in future in accordance with a) above,
8. a corporation holding social events which are of secondary signific ance in
comparison with its tax -privileged activity,
9. a sports association promoting paid in addition to unpaid sporting activities,
10. a foundation set up by a political subdivision making grants to commercial
undertakings to achieve its tax -privileged purposes,
11. a corporation transferring the following funds to its assets:
a) donations by reason of death if the decedent did not stipulate use for the
current expenditure of the corporation,
b) donations which the donor expressly states are to be used to equip the
corporation with assets or to increase the assets,
c) donations received in response to an appeal by the corporation if it is evident
from the appeal that donations are solicited to increase the assets,
d) donations in kind which by their natu re form part of the assets,
12. a foundation transferring to its assets in whole or in part in the year of its
establishment and in the two following calendar years surpluses from the management of
assets and gains from economic activities (s ection 14).
Section 59
Preconditions for tax privileges
Tax privileges shall be granted if it is stated in the statutes, the act of foundation or other
articles of association (statutes for the purposes of these provisions) the purpose the
corporation pursues, that this purpose fulfils the requirements of s ections 52 to 55 and that it
is pursued exclusively and directly; actual management activity must conform to these
statute provisions.
Section 60
Requirements to be met by the statutes
(1) The purposes set out in the s tatutes and the means by which they are to be achieved
shall be so precisely defined as to ensure that it can be ascertained on the basis of the
statutes whether the preconditions for tax privileges have been fulfilled. The statutes shall
contain the crite ria referred to in Annex 1.
(2) The statutes shall conform to the prescribed requirements, in respect of corporation tax
and trade tax, during the entire assessment period, and, in respect of other taxes, at the time
the tax liability arises.
Section 61
De dication of assets in the statutes
(1) A sufficient dedication of assets for tax purposes (s ection 55(1) number 4) shall be
deemed to exist if the purpose for which the assets are to be used if the corporation is

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 22 of 140
dissolved or liquidated or if its former pu rpose ceases to apply is so precisely defined in the
statutes as to ensure that it can be ascertained on the basis of the statutes whether such
purpose is tax -privileged.
(2) (rescinded)
(3) If the provision on the dedication of assets is subsequently amen ded so that it no longer
conforms to the requirements of s ection 55(1) number 4 it shall be deemed from the outset
to have been insufficient for tax purposes. S ection 175(1), first sentence, number 2 shall be
applied with the proviso that tax assessment no tices may be issued, cancelled or amended
insofar as they relate to taxes which have arisen within the ten calendar years preceding the
amendment of the provision on the dedication of assets.
Section 62
(rescinded)
Section 63
Requirements to be met by actu al management activity
(1) The actual management of the corporation shall be directed towards the exclusive and
direct achievement of the tax -privileged purposes and shall conform to the provisions on the
requirements for tax privileges contained in the st atutes.
(2) S ection 60(2) shall apply mutatis mutandis in respect of the actual management activity
and s ection 61(3) in respect of a breach of the stipulated dedication of assets.
(3) The corporation shall show by way of orderly records of its revenue and expenditure that
the actual management activity conforms to the provisions of subs ection (1) above.
(4) If the corporation has collected funds without the requirements of s ection 58 numbers 6
and 7 having been met, the tax office may set the corporation a time limit for the use of the
funds. The actual management activity shall be deemed to conform with the provisions of
subs ection (1) above if the corporation uses the funds for tax -privileged purposes within such
time limit.
Section 64
Taxable economic ac tivities
(1) If the law precludes tax privileges to the extent that an economic activity (s ection 14) is
carried on, the corporation shall forfeit the tax privilege for the bases of taxation (income,
turnover, assets) attributable to such economic activity insofar as the economic activity is not
a dedicated activity (s ections 65 to 68).
(2) If the corporation carries on several economic activities which are not dedicated activities
(sections 65 to 68), these shall be treated as a single economic activity.
(3) The bases of taxation attributable to economic activities which are not dedicated activities
shall not be subject to corporation tax and trade tax if the total annual income including VAT
from these economic activities does not exceed 35,000 euros.
(4) The subdivision of a corporation into several independent corporations for the purpose of
benefiting more than once from the tax privilege pursuant to subs ection (3) above shall
constitute an abuse of legal options for tax planning schemes within the meani ng of
section 42.
(5) Surpluses subject to corporation tax and trade tax realised from the liquidation of used
materials obtained free of charge, unless realised by a selling agency permanently
maintained for that purpose, may be estimated up to the level of the conventional net profit in
the respective branch of business.
(6) In the case of the following taxable economic activities, taxation may be based on a profit
of 15 per cent of income:
1. publicity for enterprises undertaken in conn ection with tax -privileged activity
including dedicated activities,
2. totalisator operations,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 23 of 140
3. second fractionation stage of the blood donor services.
Section 65
Dedicated activity
A dedicated activity shall be deemed to exist where
1. the overall design of the economic activity is directed towards achieving the tax –
privileged purposes of the corporation as set out in the statutes,
2. such purposes can be achieved only by way of such activities, and
3. the economic activity does not enter into competition with non -privile ged
activities of the same or similar type to a greater extent than necessary for achieving the
tax -privileged purposes.
Section 66
Welfare
(1) A welfare institution shall carry on a dedicated activity if it is especially directed towards
serving the pers ons designated in s ection 53.
(2) Welfare shall be the organised care of distressed or endangered fellow humans
undertaken not for gain but for the public benefit. Such care may extend to ensuring health,
moral, educational or economic welfare and may serv e preventive or remedial purposes.
(3) A welfare institution shall be especially directed towards serving the persons designated
in s ection 53 if such persons benefit from at least two thirds of its disbursements and other
services. S ection 67 shall apply in the case of hospitals.
Section 67
Hospitals
(1) A hospital covered by the Hospital Fees Act or the Federal Ordinance on Hospital and
Nursing Charges shall carry on dedicated activity if not less than 40 per cent of hospital days
or calculation days each year is attributable to patients for whom only rates for general
hospital services are charged (s ection 7 of the Hospital Fees Act, s ection 10 of the Federal
Ordinance on Hospital and Nursing Charges).
(2) A hospital not covered by the Hospital Fees Act o r the Federal Ordinance on Hospital
and Nursing Charges shall carry on dedicated activity if not less than 40 per cent of hospital
days or calculation days each year is attributable to patients for whom no higher charge for
hospital services is made than t hat referred to in subs ection (1) above.
Section 67a
Sporting events
(1) Sporting events conducted by a sports association shall constitute dedicated activity if the
total annual income including VAT does not exceed 35,000 euros. The sale of food and
drink s and the publicity measures shall not form part of the sporting events.
(2) Up to the time at which the corporation tax assessment notice becomes unappealable,
the sports association may declare to the tax office that it waives the application of the firs t
sentence of subs ection (1) above. This declaration shall be binding upon the sports
association for not less than five assessment periods.
(3) Where the application of the first sentence of subs ection (1) above is waived, sporting
events conducted by a s ports association shall constitute dedicated activity if
1. no members of the association taking part receive from the association or from
a third party remuneration or other benefits for their sporting activity or for the use of their
persons, their names , their pictures or their sporting activity for publicity purposes apart
from an expense allowance, and

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 24 of 140
2. no other sportspersons taking part receive from the association or from a third
party in collaboration with the association remuneration or other ben efits for taking part in
the event apart from an expense allowance.
Other sporting events shall constitute a taxable economic activity. This shall not preclude tax
privileges if the remuneration or other benefits are paid exclusively from economic activiti es
which are not dedicated activities, or by third parties.
Section 68
Specific dedicated activities
The following shall also constitute dedicated activities:
1.
a) old people’s homes, old people’s residential and nursing homes,
convalescent homes and serv ices for the provision of meals if especially directed
towards serving the persons designated in s ection 53 (s ection 66(3)),
b) kindergartens, residential homes for children, young persons and students,
temporary hostels for schoolchildren in rural areas a nd youth hostels,
2.
a) agricultural and horticultural undertakings serving to ensure the self –
sufficiency of corporations and hence the proper nutrition of and adequate
provision for institutional residents,
b) other organisations necessary for the self -sufficiency of corporations such as
joinery and metalworking shops,
if the supplies and other services provided by such organisations to third parties do not
exceed 20 per cent of the total of supplies and other services provided by the
undertaking, includi ng those provided to the corporation itself,
3.
a) workshops for the disabled which are eligible for aid in accordance with the
provisions of the Social Security Code, Book III, and which provide employment
for persons who on account of their disabilities are unable to obtain work in the
general labour market;
b) organisations providing employment and work therapy where disabled
persons undergo treatment on account of a doctor’s indication and without
having an employment relationship with the supporting in stitution of the
therapeutic facility in order to rebuild basic physical or psychological functions
with the aim of reintegrating such persons into everyday life or of developing,
advancing and training the specific skills and abilities necessary for parti cipating
in working life, and
c) integrative projects within the meaning of s ection 132(1) of the Social
Security Code, Book IX, if not less than 40 per cent of the employees are
particularly affected, severely disabled persons within the meaning of
sectio n 132(1) of the Social Security Code, Book IX,
4. organisations maintained to provide welfare for the blind and for physically
disabled persons,
5. organisations for foster care and voluntary upbringing assistance,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 25 of 140
6. lotteries and raffles approved by the authorities responsible if the net return is
directly and exclusively used to advance public -benefit, charitable or religious purposes,
7. cultural institutions such as museums and theatres and cultural events such as
concerts and art exhibitions; this sha ll not include the sale of food and drink,
8. adult education centres and other institutions insofar as they themselves
conduct lectures, courses and other events of an academic or instructional nature; this
shall also apply to the extent that the institut ions themselves provide board and
accommodation for persons attending such events,
9. scientific and research institutions whose supporting institution is funded
predominantly by allocations from the public sector or from third parties or from asset
manage ment. Contract research shall also serve science and research purposes.
Activities restricted to the application of established scientific knowledge, the assumption
of project sponsoring and economic activities not linked to research shall not constitute
dedicated activity.
Fourth Chapter
Liability
Section 69
Liability of the representative
The persons referred to in s ections 34 and 35 shall be liable where claims arising from the
tax debtor -creditor relationship (s ection 37) are not determined or satisfied or not determined
or satisfied in time due to a breach of the duties imposed on them, wilfully or through gross
negligence, or where, as a result, tax rebates or refunds are paid in the absence of legal
grounds. This liability shall also include any late -payment penalties payable as a result of the
breach of duty.
Section 70
Liability of the person represented
(1) Where, in fulfilling their duties, the persons referred to in s ections 34 and 35 evade taxes
or understate taxes through gross negligence or are involved in tax evasion and, as a result,
owe taxes or become liable, the persons represented, unless they are tax debtors, shall be
liable for the taxes understated due to the crime and for the tax advantages wrongfully
granted.
(2) Subs ection (1) above shall not be applied to crimes committed by legal representatives of
individuals if the individual’s wealth has not increased as a result of the crime committed by
the representative. The same shall apply where the persons represented carefully selected
an d supervised the person who evaded taxes or understated taxes through gross
negligence.
Section 71
Liability of tax evaders and persons receiving, holding or selling goods obtained by
tax evasion
Whoever evades taxes or receives, holds or sells goods obtai ned by tax evasion or
participates in such crime shall be liable for the taxes understated, the tax advantages
wrongfully granted and the interest due in accordance with s ection 235 of this Code.
Section 72
Liability for breaches of the obligation on the a uthenticity of accounts
Whoever contravenes the provisions of s ection 154(3) wilfully or due to gross negligence
shall be liable to the extent that this contravention is detrimental to the realisation of claims
arising from the tax debtor -creditor relation ship.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 26 of 140
Section 73
Liability in the case of fiscal unity
A controlled company shall be liable for such taxes payable by the controlling company for
which their fiscal unity is of relevance with regard to tax purposes. Entitlements to the
reimbursement of tax rebates shall be equivalent to these taxes.
Section 74
Liability of the owner of objects
(1) Where objects serving the purposes of an enterprise are not owned by the trader but by a
person holding a substantial interest in the enterprise, the owner of the objects shall be liable
with such objects for those taxes payable by the enterprise where tax liability is based on
operation of the enterprise. However, this liability shall only extend to those taxes which
became chargeable while the substantial interes t existed. Entitlements to the reimbursement
of tax rebates shall be equivalent to these taxes.
(2) Persons shall be deemed to hold a substantial interest in the enterprise if they directly or
indirectly hold an interest of more than a quarter of the share or nominal capital or of the
assets of the enterprise. Persons exercising a controlling influence on the enterprise and
contributing by their behaviour to the non -payment of taxes due within the meaning of the
first sentence of subs ection (1) above shall also be deemed to hold a substantial interest.
Section 75
Liability of the acquirer of a business
(1) Where ownership of an enterprise or a business managed separately within an enterprise
structure is transferred as a whole, the acquirer shall be liable f or taxes where tax liability is
based on operation of the enterprise, and for tax -deductible amounts, provided that the taxes
have arisen after the beginning of the last calendar year before the transfer and that they are
assessed or declared before expiry of one year after registration of the business by the
acquirer. Liability shall be limited to the assets acquired. Entitlements to the reimbursement
of tax rebates shall be equivalent to taxes.
(2) Subs ection (1) above shall not apply to acquisitions from an insolvency estate or to
acquisitions in enforcement proceedings.
Section 76
Liability in rem
(1) Goods liable to excise, import or export duty shall serve as a guarantee for the taxes due
on those goods (liability in rem), irrespective of any third -par ty rights.
(2) Unless otherwise stipulated, liability in rem shall arise for goods subject to excise, import
or export duty upon their entry into the territory of application of this Code, for goods subject
to excise duty also upon their production or manu facture.
(3) As long as the tax has not been paid, the revenue authority may seize the goods. Seizure
of the goods may also be effected by prohibiting the person with custody of the goods from
disposing of them.
(4) Liability in rem shall expire as soon as the tax debt expires. It shall also expire as soon as
the seizure is lifted or the goods are released for home use with the consent of the revenue
authority.
(5) The liability in rem shall not be enforced if the authorised person has lost the goods, if th e
goods subject to excise duty are taken into a manufacturing business or if the goods subject
to import or export duty are assigned a customs -approved treatment or use.
Section 77
Obligation to tolerate
(1) Whoever is legally obliged to pay a tax out of f unds they manage shall to this extent be
obliged to tolerate enforcement against these assets.
(2) The owner of real property shall tolerate execution against this property on account of a
tax based on real property as a public charge. W hoever is registere d as owner in the Land

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 27 of 140
Register shall be deemed to be the owner as far as the revenue authority is concerned. The
right of the unregistered owner to raise the obj ections against the public charge to which he
is entitled shall remain unaffected.
Third Part
General rules of procedure
First Chapter
Procedural principles
1st Subchapter
Participation in the proceedings
Section 78
Participants
Participants shall be
1. those making and opposing an application,
2. those to whom the revenue authority intends to dire ct or has directed the
administrative act,
3. those with whom the revenue authority intends to conclude or has concluded a
contract under public law.
Section 79
Capacity to act
(1) The following shall be capable of acting in administrative proceedings:
1. natural persons capable of contracting under civil law,
2. natural persons whose capacity to contract is limited under civil law, to the
extent that they are recognised with regard to the subject matter of the proceedings as
being capable of contracting un der civil law or capable of acting under public law,
3. legal persons, associations and conglomerations of assets represented by their
legal representatives or specially appointed individuals,
4. authorities represented by their heads, or representatives o r persons appointed
by them.
(2) Where there is a reservation of consent pursuant to s ection 1903 of the Civil Code
regarding the subject -matter of the proceedings, a person with capacity to contract under the
care of a custodian shall be deemed capable of acting in administrative proceedings only
insofar as he may act, under the provisions of civil law, without the consent of the custodian,
or he is recognised as being capable of acting under the provisions of public law.
(3) S ections 53 and 55 of the Code of Civil Procedure shall apply accordingly.
Section 80
Authorised representatives and advisers
(1) A participant may cause himself to be represented by a person authorised for that
purpose. The authorisation shall empower the person to whom it is given to take all actions
related to the administrative proceedings except where its terms indicate otherwise; it shall
not confer on those to whom it is granted the right to receive tax refunds or tax rebates. The
authorised representative shall provide written e vidence of his authorisation upon request.
Any revocation of authorisation shall only take effect with respect to the authority when it is
received by it.
(2) Authorisation shall be cancelled neither by the death of the person granting such
authorisation, nor by a change in his capacity to act or in his legal representation; when

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 28 of 140
however appearing in administrative proceedings on behalf of the legal successor, the
authorised representative shall upon request furnish written evidence of his authorisation.
(3) Where a person is appointed to act as authorised representative in proceedings, he shall
be the person with whom the authority deals. The authority may approach the actual
participant to the extent that he is obliged to cooperate. Where the revenue autho rity does
approach the participant, the authorised representative is to be informed.
(4) A participant may appear in negotiations and discussions with an adviser. Any points
made by the adviser shall be deemed to have been put by the participant except whe re the
latter contradicts them without undue delay.
(5) Authorised representatives and advisers shall be rejected where they provide
professional assistance in tax matters without due authorisation; this shall not apply to
notaries and patent agents.
(6) A uthorised representatives and advisers may be refused permission to make
submissions if they are unsuitable to do so; they may be refused permission to make a
verbal submission only if they are not capable of appropriate submission. This shall not apply
to natural persons referred to in s ection 3 number 1 and s ection 4 numbers 1 and 2 of the
Tax Consultancy Act.
(7) Authorised representatives and advisers whose authority to provide professional
assistance in tax matters is governed by s ection 3 number 4 of the Tax Consultancy Act may
be rejected if they are not suitably qualified to provide professional assistance in tax matters.
The revenue authority may request the authorised representatives and advisers referred to
in the first sentence above to produce e vidence of their suitable qualifications. Authorised
representatives or advisers shall be presumed to be suitably qualified where they are
1. natural persons who exercise in another country a profession similar in terms of
training and powers to the profes sions referred to in s ection 3 number 1 of the Tax
Consultancy Act and if the conditions for the pursuit of the profession essentially satisfy
the requirements of the Tax Consultancy Act;
2. associations having board members, managing directors, personally liable
partners, members or other shareholders, the majority of whom exercise in another
country a profession similar in terms of training and powers to the professions referred to
in s ection 3 number 1 of the Tax Consultancy Act and who, in addition, ess entially fulfil
the requirements for the pursuit of the professional activity as laid down in the Tax
Consultancy Act.
(8) Refusal of permission under subs ections (5) and (6) above shall also be made known to
the participant whose authorised representative or adviser is refused permission. Acts
relating to the proceedings undertaken by the authorised representative or adviser after such
refusal of permission shall be invalid.
Section 81
Official appointment of a representative
(1) Where no representative is appointed, the custodianship court shall, at the request of the
revenue authority, appoint a suitable representative
1. for a participant whose identity is unknown,
2. for an absent participant whose abode is unknown or who is prevented from
looking after his affairs,
3. for a participant without abode within the territory of application of this Code
who fails to comply with the revenue authority’s request to nominate a representative
within the period set,
4. for a participant who, as a result of mental i llness or physical, mental or
emotional disability, is not capable of taking part personally in the administrative process,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 29 of 140
5. with respect to ownerless items to which the proceedings refer, in order to
protect the rights and obligations arising in relatio n to such items.
(2) Competency over the appointment of the representative shall lie with the custodianship
court in the cases referred to in subs ection (1) number 4 above and, in the case of a
participant not of full age, with the family court, in whose d istrict the participant has his
habitual abode (s ection 272(1) number 2 of the Act on the Procedure in Family Matters and
in Matters of Non -Contentious Jurisdiction); in all other respects, the competent court shall
be that in whose district the revenue au thority making the request is located.
(3) The representative shall be entitled to claim from the legal entity of the revenue authority
requesting his appointment a reasonable remuneration and refund of his cash outlay. The
revenue authority may require th e person represented to refund its expenses. It shall
determine the amount of remuneration and ascertain the amount of expenditure and costs.
(4) In the cases referred to in subs ection (1) number 4 above, the appointment and office of
representative shall be governed by the provisions on custody; in all other respects, the
provisions on tutelage shall apply accordingly.
2nd Subchapter
Exclusion and rej ection of public officials and other persons
Section 82
Persons excluded
(1) The following persons may not act on behalf of a revenue authority in administrative
proceedings:
1. whoever is himself a participant,
2. whoever is a relative (s ection 15) of a participant,
3. whoever by virtue of a law or authorisation represents a participant in general or
in the sp ecific administrative proceedings,
4. whoever is a relative (s ection 15) of a person who provides assistance in tax
matters to a participant in the proceedings,
5. whoever is employed by a participant and receives remuneration from him, or is
active on his board of management, supervisory board or similar body; this shall not
apply to a person whose employing body is a participant,
6. whoever, outside his official capacity, has furnished an opinion or otherwise
been active in the matter.
Anyone who may bene fit or suffer a disadvantage directly as a result of the action or the
decision shall be deemed equal to the participant. This shall not apply when the benefit or
disadvantage is based only on the fact that someone belongs to an occupational group or
segme nt of the population whose joint interests are affected by the matter.
(2) Whoever is excluded under subs ection (1) above may undertake non deferrable
measures in cases of imminent danger.
(3) Where a member of a committee considers himself to be excluded, or where there is
doubt as to whether the provisions of subs ection (1) above apply, the chairman of the
committee shall be informed. The committee shall decide on the matter of exclusion. The
person concerned shall not participate in the decision. The exc luded member may not attend
further discussions or be present when decisions are taken.
Section 83
Fear of bias
(1) Where grounds exist to justify suspicions against the impartiality of the public official, or if
a participant maintains that such grounds e xist, the public official shall inform the head of the
authority or the person appointed by him and shall at his request refrain from participating.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 30 of 140
Where the fear of bias relates to the head of the authority, the supervisory authority shall
issue this ord er to the extent that the head of the authority does not refrain from participating
of his own accord.
(2) S ection 82(3) shall apply mutatis mutandis to members of a committee.
Section 84
Rej ection of members of a committee
Any participant may reject a mem ber of a committee participating in administrative
proceedings who is not entitled to take part in the administrative proceedings (s ection 82) or
against whom there is a fear of bias (s ection 83). A rej ection made before the oral hearing
shall be explained in writing or for record. The explanation shall not be permissible if the
participant has attended the oral hearing without asserting the reason for rej ection known to
him. The decision on the rej ection shall be governed by s ection 82(3), second to fourth
sentences. The decision on the motion for rej ection may only be contested jointly with the
decision concluding the proceedings before the committee.
3rd Subchapter
Taxation principles, evidence
I. General
Section 85
Taxation principles
The revenue authori ties shall assess and levy taxes in a uniform manner in accordance with
applicable laws. In particular, they shall ensure that taxes are not understated, or levied
unjustly, or that tax refunds and rebates are not granted or denied incorrectly.
Section 86
Commencement of proceedings
The revenue authority shall decide at its duty -bound discretion whether and when it
instigates administrative proceedings. This shall not apply when the revenue authority by law
1. must act ex officio or upon application,
2. may only act upon application and no such application is submitted.
Section 87
Official language
(1) The official language shall be German.
(2) Where applications are made to a revenue authority in a foreign language, or petitions,
records, documents, certifi cates or other documents are filed in a foreign language, the
revenue authority may require that a translation be provided without undue delay. In justified
cases, the revenue authority may require submission of a notarised translation or a
translation by a publicly authorised or sworn interpreter or translator. Where the required
translation is not furnished without undue delay, the revenue authority may itself arrange for
a translation at the expense of the participant. Where the revenue authority has ava iled itself
of the services of interpreters or translators, these shall receive remuneration in
corresponding application of the Judicial Remuneration and Compensation Act.
(3) Where a notice, application or statement of intent is made with the intention o f fixing a
period within which the revenue authority is to act in a certain manner, and where these are
received in a foreign language, the period shall commence only at that point in time at which
a translation is available to the revenue authority.
(4) W here a notice, application or statement of intent received in a foreign language is made
with the intention of fixing a period for a participant vis -à-vis the revenue authority, of
enforcing a claim under public law or requiring the fulfilment of an action , the notice,
application or statement of intent shall be deemed to have been received on the date of their
receipt by the revenue authority, where at the revenue authority’s request a translation is

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 31 of 140
provided within a suitable period to be fixed by the rev enue authority. Otherwise, the moment
of receipt of the translation shall be deemed definitive, unless international agreements
provide otherwise. Reference shall be made to such legal consequence when the period is
being fixed.
Section 87a
Electronic comm unication
(1) The transmission of electronic documents shall be permissible provided that the recipient
provides this possibility. An electronic document shall be deemed as having been received
as soon as the intended receiving entity has recorded it in a format which is capable of being
processed by the addressee. W here the revenue authority transmits information which is
subject to tax secrecy, the information shall be encrypted using an appropriate technique.
(2) Where an electronic document transmitted to the revenue authority is not suitable for
processing by it, it shall inform the sender without undue delay, stating the technical
specifications that apply. Where a recipient claims that he is unable to process the electronic
document transmitted by the revenue authority, it shall send it to him anew in a suitable
electronic format or as a written document.
(3) Where it is stipulated by law that applications, declarations or communications to the
revenue authorities be in written form, this may be replac ed by electronic form unless
otherwise required by law. In this event, the electronic document shall bear a qualified
electronic signature in accordance with the Electronic Signature Act. Signing with a
pseudonym shall not be permissible.
(4) Where it is s tipulated by law that administrative acts or other measures of the revenue
authorities be in written form, this may be replaced by electronic form unless otherwise
required by law. In this event, the electronic document shall bear a qualified electronic
signature in accordance with the Electronic Signature Act. The first sentence above shall
apply to minutes to be drawn up by the revenue authority only to the extent expressly
permitted by law.
(5) Where an electronic document constitutes an item of evidence , the evidence shall be
deemed as having been furnished by submitting or transmitting the file; if neither the
taxpayer nor the revenue authority is in possession of the file, s ection 97(1) and (3) shall
apply accordingly. The apparent authenticity, as ver ified pursuant to the Electronic Signature
Act, of a document transmitted with a qualified electronic signature in accordance with the
Electronic Signature Act may only be called into question by way of facts which lead to
serious doubt as to whether the d ocument was transmitted in keeping with the will of the
owner of the signature key.
(6) For the cases referred to in subsections (3) and (4) above, the Federal Ministry of
Finance may, in consultation with the Federal Ministry of the Interior, allow, by wa y of
ordinance with the consent of the Bundesrat, another secure method, in addition to the
qualified electronic signature, which authenticates the sender of the data and guarantees the
integrity of the data set transmitted electronically. The electronic I D function of the identity
card may also be used for the purpose of authenticating the sender of the data; the data
required for that purpose may be stored and used together with the other data transmitted.
Consent from the Bundesrat shall not be required to the extent that motor vehicle tax,
insurance tax and excise duties with the exception of beer duty are concerned.
Section 88
Principle of investigation
(1) The revenue authority shall determine the facts of the case ex officio. It shall determine
the ty pe and scope of the investigation; it shall not be bound by the participants’ submissions
and motions to admit evidence. The extent of this obligation shall be determined by the
circumstances of the individual case.
(2) The revenue authority shall take acc ount of all circumstances of importance in an
individual case, including those favourable to the participants.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 32 of 140
(3) To ensure the uniform and lawful assessment and levying of taxes, the Federal Ministry
of Finance may stipulate, by way of ordinance and subj ect to the consent of the Bundesrat,
requirements regarding the type and scope of the investigations in the case of the use of
automated mechanisms. Consent from the Bundesrat shall not be required to the extent that
excise duties with the exception of bee r duty are concerned.
Section 88a
Coll ection of protected data
To the extent required to ensure the uniform assessment and levying of taxes, the revenue
authorities may collect and use in files or records data protected under s ection 30, including
for futu re proceedings within the meaning of s ection 30(2) numbers 1(a) and (b), in particular
to obtain comparable values. Use of the data shall only be permissible for proceedings within
the meaning of s ection 30(2) numbers 1(a) and (b).
Section 89
Guidance, inf ormation
(1) The revenue authority shall solicit the filing of statements, the submission of applications
or the corr ection of statements or applications when it is clear that these were not filed or
submitted, or filed or submitted incorrectly, due to an error or a lack of knowledge. It shall,
where necessary, give information regarding the rights and duties of participants in the
administrative proceedings.
(2) The tax offices and the Federal Central Tax Office may upon application provide advance
ruling on the treatment for tax purposes of precisely defined, as yet unrealised
circumstances where this is of special interest in light of the significant tax implications. The
revenue authority which would be the authority with local jurisdiction were the unde rlying
circumstances referred to in the request to be realised shall be responsible for issuing the
advance ruling. Where no revenue authority has jurisdiction under s ections 18 to 21 for the
applicant at the time the application is filed, jurisdiction sha ll lie with the Federal Central Tax
Office for taxes administered by the revenue authorities of the Länder on behalf of the
Federation, notwithstanding the second sentence above; in this case, the advance ruling
shall also bind the revenue authority which is responsible at the time the underlying
circumstances referred to in the ruling are realised. The Federal Ministry of Finance shall be
authorised to stipulate, by way of ordinance issued with the approval of the Bundesrat, more
precise conditions on the form of, content of and conditions for the application for advance
ruling, and on the scope of its binding effect.
(3) A fee shall be levied for processing an application for advance ruling pursuant to
subsection (2) above. The fee shall be payable by the applicant within one month of
notification of assessment of the fee. The revenue authority may delay its decision on the
application until the fee has been paid. W here an application for advance ruling is withdrawn
before the revenue authority’s decision i s issued, the fee may be reduced.
(4) Fees shall be calculated on the basis of the value the advance ruling represents for the
applicant (value of the object). The applicant should state the value of the object and the
circumstances relevant to its determi nation in his application for advance ruling. Fees are to
be calculated by the revenue authority on the basis of the value of the object as declared by
the applicant insofar as this does not lead to an obviously incorrect resultant amount. W here
the value of the object cannot be determined even by way of estimate, a time related fee
shall be charged; this shall be 50 euros per half hour or portion thereof, the minimum charge
being 100 euros.
(5) In corresponding application of section 34 of the Court Fees A ct, the fee shall be levied at
a rate of 1.0. Section 39 (2) of the Court Fees Act shall be applied accordingly. Where the
value of the object is less than 10,000 euros, no fee shall be levied.
(6) Where the value of the object cannot be determined and can not be determined even by
way of estimate, a time related fee shall be charged; this shall be 50 euros for each half hour
of processing time commenced. W here the processing time is less than two hours, no fee
shall be levied.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 33 of 140
(7) Interest may be waived in full or in part where its collection would be unreasonable in
individual cases. The fee may in particular be reduced where an application for advance
ruling is withdrawn before the revenue authority’s decision is issued.
Section 90
Obligation of participan ts to cooperate
(1) Participants shall be obliged to cooperate with the authorities in establishing the facts of
the case. They shall discharge this obligation in particular by the full and truthful disclosure of
the facts relevant for taxation and by indi cating any evidence known to them. The extent of
this obligation shall be determined by the circumstances of the individual case.
(2) Where circumstances relating to transactions effected outside the territory of application
of this Code are to be establis hed and subjected to the provisions of tax law, the participants
shall clarify these circumstances and procure the necessary evidence. In doing so, they shall
exhaust all legal and practical means available to them. Where there are objectively
recognisable indications to assume that the taxpayer has business relations with financial
institutions in a state or territory with which there is no agreement to provide information in
accordance with Article 26 of the OECD Model Tax Convention on Income and on Capi tal in
the version of 2005, or the state or the territory does not provide information to a comparable
extent or is not willing to engage in a corresponding provision of information, the taxpayer
shall at the revenue authority’s request make a sworn statem ent affirming the correctness
and completeness of the details provided by him and authorise the revenue authority to
assert on his behalf, both in and out of court, the possible entitlement to information against
the credit institutions named by the revenu e authority; the sworn statement may not be
compelled pursuant to s ection 328. A participant may not plead inability to clarify
circumstances or to submit evidence when he, depending on the case, could, in structuring
his circumstances, have afforded himse lf or have himself given the opportunity to do so.
(3) Where circumstances relate to transactions having a bearing on another country, the
taxpayer shall keep records on the nature and content of his business relations with
associated persons within the me aning of s ection 1(2) of the Foreign Tax Act. The obligation
to keep records shall also extend to the economic and legal basis of any agreement on
prices and other terms of business complying with the arm’s -length principle with associated
persons. In the case of exceptional business transactions, records shall be prepared without
delay. The obligation to keep records shall apply accordingly to taxpayers who, for the
purposes of domestic taxation, are obliged to allocate profits between their domestic
enter prise and its foreign permanent establishment or to determine the profit of the domestic
permanent establishment of their foreign enterprise. In order to ensure the uniform
application of the law, the Federal Ministry of Finance shall be empowered with the consent
of the Bundesrat by way of ordinance to determine the nature, content and extent of the
records to be kept. The revenue authority should require the submission of records only for
the purposes of conducting an external audit. Such submission shall be governed by
section 97 with the proviso that subs ection (2) of this provision shall not apply. It shall be
done on request within a period of 60 days. Where records of exceptional business
transactions are to be submitted, the period shall be 30 days. The period for submission may
be extended in substantiated individual cases.
Section 91
Hearing participants
(1) Before an administrative act affecting the rights of a participant may be issued, he should
be given the opportunity of commenting on the facts relevant to the decision. This shall apply
particularly where there is to be a significant departure from the facts declared in the tax
return to the detriment of the taxpayer.
(2) The hearing may be dispensed with when not required by the circumstances o f an
individual case, in particular when

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 34 of 140
1. an immediate decision appears necessary because of imminent danger or in
the public interest,
2. the hearing would jeopardise the observance of a time limit vital to the decision,
3. there is not to be a divergen ce to a participant’s disadvantage from the actual
details he provided in an application or statement,
4. the revenue authority intends to issue a general order or similar administrative
acts in large numbers or administrative acts using automated systems,
5. measures of enforcement are to be taken.
(3) The hearing shall not be conducted when there is an overriding public interest in the
hearing not taking place.
Section 92
Evidence
The revenue authority shall use such evidence as it deems necessary at its duty -bound
discretion to ascertain the facts of the case. In particular it may
1. gather information of all kinds from the participants and other persons,
2. consult experts,
3. procure certificates and files,
4. carry out inspections.
II. Evidence through information and expert opinion
Section 93
Obligation of the participants and other persons to provide information
(1) The participants and other persons shall provide the revenue authority with the
information needed to ascertain facts which are of signif icance for taxation. This shall also
apply to associations without legal capacity, conglomerations of assets, authorities and
commercial enterprises of public -law entities. Persons other than the participants should be
required to provide information only if clarification of the matter by the participants does not
or is not likely to produce any results.
(2) (rescinded)
(3) Information shall be provided truthfully and to the best of the knowledge and belief of the
person obliged to provide information. Pers ons obliged to provide information who are
unable to do so from memory shall consult the accounts, records, business documents and
other documentation available to them and shall where necessary take notes from such
documentation.
(4) The person obliged to provide information may do so in writing, electronically, orally or by
telephone. The revenue authority may require information to be provided in writing if this is
expedient for the matter in question.
(5) The revenue authority may stipulate that the per son obliged to provide information does
so on official premises in the form of an oral statement. They shall be entitled to do so in
particular if information in writing has been demanded but not provided or if information
provided in writing has not serve d to clarify the matter. The first sentence of subs ection (2)
above shall apply accordingly.
(6) Upon application by the person obliged to provide information, a written record shall be
prepared of the oral statement made on official premises. This record shall include the
names of persons present, the place, the date and the essential content of the information. It
should be signed by the public official to whom the oral statement is made and by the person
obliged to provide information. A copy of the reco rd shall be supplied to the participants.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 35 of 140
(7) An automated retrieval of account details pursuant to s ection 93b shall only be
permissible insofar as
1. the taxpayer applies for a tax assessment pursuant to s ection 32d(6) of the
Income Tax Act, or
2. the in vestment income in the cases outlined in s ection 2(5b), second sentence,
of the Income Tax Act are to be included
and the retrieval in these cases is necessary for the assessment of income tax or is
necessary
3. for determining income pursuant to s ections 20 and 23(1) of the Income Tax Act
in assessment periods up to and including 2008, or
4. for levying taxes regulated by federal law
or
5. the taxpayer agrees.
In these cases the revenue authority or, in the cases outlined in s ection 1(2), the
municipality, may submit a request to the Federal Central Tax Office asking it to retrieve from
the credit institutions individual data contained in the files that are to be maintained under
section 93b(1); in the cases outlined in the first sentence, numbers 1 to 4 ab ove a request for
retrieval may be made only where a request for information addressed to the taxpayer did
not or is not likely to produce any results.
(8) The authorities responsible for administering
1. the basic allowance for jobseekers pursuant to the Social Security Code, Book
II,
2. social welfare assistance pursuant to the Social Security Code, Book XII,
3. the promotion of education pursuant to the Federal Training Promotion Act,
4. the promotion of training for career advancement pursuant to the Up grading
Training Assistance Act, and
5. housing benefit pursuant to the Housing Benefit Act
may submit a request to the Federal Central Tax Office asking it to retrieve from the credit
institutions the data referred to in s ection 93b(1) to the extent that this is necessary to verify
fulfilment of eligibility conditions for claims and a previous request for information addressed
to the persons concerned did not or is not likely to produce any results. Submission of a
request for retrieval to the Federal Cent ral Tax Office regarding the data referred to in
section 93b(1) shall be permissible for other purposes only to the extent that this is expressly
permitted by a federal law.
(9) Prior to submission of a request for retrieval pursuant to subs ections (7) or (8) above, the
person concerned shall be advised that account data may be retrieved; this may also be
achieved by express information to this effect on official forms and in guidance notes. Once
an account data retrieval has been conducted, the requesting party shall notify the person
concerned that the retrieval has been conducted. Advice pursuant to the first half -sentence
of the first sentence above and notification pursuant to the second sentence above shall not
be provided to the extent that
1. they wo uld endanger the proper discharge of the duties falling within the
jurisdiction of the requesting party,
2. they would endanger public security or order or would otherwise result in
disadvantages to the Federation or a Land, or

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 36 of 140
3. the fact that account dat a is retrieved must be kept secret pursuant to a legal
provision or by its very nature, in particular owing to the overriding justified interests of a
third party
and the interests of the person concerned must therefore be overridden; s ection 19(5) and
(6) of the Federal Data Prot ection Act as published on 14 January 2003 (Federal Law
Gazette I, p. 66), which was most recently amended by Article 1 of the Act of 22 August
2006 (Federal Law Gazette I, p. 1970), in the respective applicable version, shall appl y
accordingly unless otherwise stipulated by law.
(10) A request for retrieval pursuant to subs ections (7) or (8) above and the result thereof
shall be documented by the requesting party.
Section 93a
General obligation to disclose information
(1) To ensure taxation (s ection 85), the Federal Government may, by way of ordinance with
the consent of the Bundesrat, oblige authorities and other public offices to inform the
revenue authorities of –
1. administrative acts which result in a denial or reduction of ta x privileges or
permit those affected by the act to realise taxable income,
2. subsidies and similar incentive measures, and
3. indications of illegal work, of unauthorised provision of workers for temporary
employment, or of unauthorised employment of non -nationals.
It may also be determined by way of ordinance that recipients of payments by authorities and
other public offices as well as by public service broadcasters shall, with a view to facilitating
the discharge of their record keeping and returns obl igations, be informed of the total amount
of the annual payments and of the revenue authorities’ opinion as to the tax liabilities thus
incurred; the competent revenue authority shall be informed of the recipient, the legal basis
and the amount and timing of the payment. The obligations of the authorities, other public
offices and the public service broadcasters to submit notifications, details and information
and to provide mutual assistance on the basis of other provisions shall remain unaffected.
(2) Deb t administrations, credit institutions, commercial enterprises of legal persons under
public law within the meaning of the Corporation Tax Act, public joint ventures without
sovereign jurisdiction, professional chambers and insurance companies shall be exe mpt
from the obligation to disclose information.
(3) The ordinance shall state more precisely the entities providing the information, the
obligation to notify the persons concerned, the information to be provided and the revenue
authorities responsible for accepting receipt of the communication as well as provide for the
scope, date and procedure of the communication. The ordinance may provide for exceptions
to the obligation to disclose information, in particular in cases of minor tax importance.
Section 93b
Automated access to account details
(1) The data file which credit institutions are required to maintain under s ection 24c(1) of the
Banking Act shall also be maintained for the purposes of retrievals pursuant to s ection 93(7)
and (8).
(2) On request, t he Federal Central Tax Office may in the cases outlined in s ection 93(7) and
(8) retrieve from the credit institutions by automated search procedure individual data from
the files to be maintained in accordance with subs ection (1) above and transmit them t o the
requesting party.
(3) The requesting party shall be responsible for the permissibility of such data retrieval and
transmission.
(4) S ection 24c(1), second to sixth sentences, and 24c(4) to (8) of the Banking Act shall
apply accordingly.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 37 of 140
Section 94
Ex amination under oath
(1) Where the revenue authority considers it advisable in view of the importance of the
evidence, or in order to ensure that the truth is told, that a person other than one of the
participants swear an oath, the revenue authority may i ssue a request for examination under
oath to the fiscal court within whose jurisdiction the person who is to take the oath resides or
has his abode. Where the person who is to take the oath does not reside or has no abode
within the jurisdiction of a fisca l court or of an especially established senate, the request for
examination under oath may also be made to the local court responsible.
(2) The revenue authority shall specify the subject -matter of the examination and the names
and addresses of the partici pants in its request. The court shall inform the participants and
the requesting revenue authority of the relevant dates. The participants and the requesting
revenue authority shall have the right to ask questions during the examination.
(3) The court shal l decide as to the lawfulness of a refusal to give evidence or to take the
oath.
Section 95
Sworn statement
(1) The revenue authority may require the participant to make a sworn statement to confirm
the correctness of his account. A sworn statement should only be required where other
means of establishing the truth are not available, have failed to produce any results or would
require a disproportionate effort. A sworn statement may not be required of persons who are
incapable of taking an oath pursuant to section 393 of the Code of Civil Procedure.
(2) The sworn statement shall be recorded in writing by the revenue authority. Persons
authorised to make such a recording shall be the head of the authority, his permanent
deputy and members of the civil service qualified to exercise the functions of a judge or who
fulfil the requirements of s ection 110, first sentence, of the German Judiciary Act. The head
of the authority or his permanent deputy may authorise in writing other members of the civil
service to act generally in this capacity or for individual cases.
(3) The details, the correctness of which is to be confirmed, shall be recorded in writing and
notified to the participant at least one week prior to the recording of the statement. The
sworn statement s hall consist in the participant’s repeating the facts previously stated by him
and making the following declaration: “I do solemnly affirm that to the best of my knowledge I
have told nothing but the truth and have concealed nothing.” Authorised representa tives and
advisers of the participant shall be entitled take part in the recording of the sworn statement.
(4) Prior to the recording of the sworn statement, the participant shall be advised of the
meaning of the sworn statement and the consequences under criminal law of making an
incorrect or incomplete statement. The fact that this has been done shall be included in the
written record.
(5) The written record shall in addition contain the names of those present and the place and
date of the record. The wri tten record shall be read to the participant making the statement
for his approval, or, upon request, shall be made available for him to inspect. The fact that
this has been done shall be recorded and signed by the participant. The written record shall
the n be signed by the public official who received the sworn statement and by the recording
clerk.
(6) Sworn statements may not be enforced pursuant to s ection 328 below.
Section 96
Enlistment of experts
(1) The revenue authority shall determine whether an ex pert shall be enlisted. Except in
cases of imminent danger, the revenue authority shall inform the participants beforehand of
who it intends to enlist as expert.
(2) An expert may be rejected by the participants for fear of bias where grounds exist to
just ify doubts as to his impartiality, or where it is feared that his work may infringe trade or
business secrets or be prejudicial to the business activities of a participant. Notification of the

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 38 of 140
rej ection shall be asserted to the revenue authority without un due delay after the
appointment of the expert has been communicated, or, at the latest, within two weeks and
shall be accompanied by substantiation of the reasons for rejection. After that date,
rej ection shall only be permissible where it can be establish ed credibly that the grounds for
rej ection could not have been asserted previously. The revenue authority which has
appointed or intends to appoint the expert shall decide on the rejection. The motion for
rej ection shall not have the effect of delaying pro ceedings.
(3) The person appointed as an expert shall comply with the appointment if he has been
publicly appointed to render opinions of the required kind, or if he publicly and commercially
practices the science, art, or trade, the knowledge of which is a prerequisite for rendering an
opinion, or if he as been publicly appointed or authorised to practice such profession.
Whoever has informed the revenue authority of his willingness to furnish an opinion shall
also be obliged to do so.
(4) Experts may refu se to furnish an opinion for fear of bias, indicating the reasons.
(5) Members of the civil service shall be called in as experts only if they have received the
authorisation required under civil service law.
(6) Experts shall be alerted to the provisions on the prot ection of tax secrecy.
(7) Opinions shall routinely be furnished in writing. Oral opinions may also be permitted.
Expert opinions may only be required to be supported by an administration of oath if the
revenue authority considers this advisable in view of the importance of the expert opinion.
Where the expert has previously taken an oath regarding the rendering of opinions of the
required kind, a reference to the oath previously taken shall be sufficient; such reference
may also be made in a wri tten opinion. Otherwise, s ection 94 shall apply mutatis mutandis to
the administration of the oath.
III. Documentary evidence and evidence by inspection
Section 97
Presentation of documents
(1) The revenue authority may request the participants and other p ersons to present
accounts, records, business documents and other deeds and documents for insp ection and
examination. In this respect, the revenue authority shall indicate whether the documents are
sought for the purpose of taxing the person required to pr esent the documentation or for the
purpose of taxing other persons. S ection 93(1), second sentence, shall apply accordingly.
(2) Presentation of accounts, records, business documents and other deeds and documents
shall as a rule only be requested if the pe rson required to present the documentation has
failed to furnish the information, if the information is insufficient, or if there are concerns as to
the correctness of the information. These restrictions shall not apply to the participant where
the partici pant claims tax benefits or where the revenue authority does not wish to conduct
an external audit or, given the considerable tax implications, deems this necessary for an
early resolution of the issue.
(3) The revenue authority may demand that the documen tation referred to in subs ection (1)
above be presented on official premises or may inspect it at the premises of the person
obliged to present the documentation if the latter has agreed to this or if the documents are
unsuited for submission on official p remises. S ection 147(5) shall apply accordingly.
Section 98
Carrying out inspections
(1) Where the revenue authority carries out an inspection, the result shall be included in the
records.
(2) Experts may be called in when the insp ection is being carried o ut.
Section 99
Entry onto property and premises

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 39 of 140
(1) Public officials entrusted by the revenue authority with carrying out the insp ection and
experts called in pursuant to s ections 96 and 98 above shall be authorised to enter during
regular business and wor king hours properties, premises, ships, enclosed operating facilities
and similar facilities, to the extent necessary in order to reach findings in the interest of
taxation. The persons affected should be given sufficient advance notice. Living quarters
ma y only be entered against the wishes of the occupier where this serves to avert acute
dangers to public security and order.
(2) Measures pursuant to subs ection (1) above may not be imposed for the purpose of
searching for unknown objects.
Section 100
Prese ntation of valuables
(1) The participant and other persons shall on request present to the revenue authority
valuables (money, securities, precious objects) to the extent necessary in the interest of
taxation to establish their nature and value. S ection 98 (2) shall be applied.
(2) Presentation of valuables may not be ordered for the purpose of searching for unknown
objects.
IV. Right of refusal to give information and to present documents
Section 101
Relatives’ right of refusal to give evidence and to take an oath
(1) Relatives (s ection 15) of a participant may refuse to provide information unless they are
themselves obliged to provide information on their personal tax affairs as participants or
required to fulfil an obligation to provide information for a p articipant. Relatives shall be
advised of their right to withhold information. It shall be mentioned in the record that such
advice was provided.
(2) The persons referred to in subs ection (1) above shall also have the right to refuse to
support the informa tion they provided by a sworn statement. The second and third sentences
of subs ection (1) above shall apply accordingly.
Section 102
Right to withhold information to protect certain professional secrets
(1) Other persons who may also refuse to provide info rmation shall be:
1. clergymen, with regard to information that was entrusted to them or became
known to them in their capacity as spiritual advisors,
2. members of the Bundestag, of a parliament of a Land or a second chamber,
with regard to persons who in their capacity as members of these bodies confided to
them facts or to whom they confided facts in this capacity, as w ell as to the facts
themselves.
3.
a) defence counsels,
b) solicitors, patent agents, notaries, tax consultants, auditors, tax
represent atives, certified accountants,
c) doctors, dentists, psychological psychotherapists, psychotherapists
specialising in the treatment of children and juveniles, pharmacists and midwives,
with regard to information entrusted to them or which became known to t hem in
their professional capacity,
4. persons who are or were professionally involved in the preparation, production
or dissemination of periodically printed matter or radio broadcasts with regard to the

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 40 of 140
author, contributor or source of contributions and documentation and with regard to
information received by them in their professional capacity insofar as this concerns
contributions, documentation and information for the editorial element of their activity;
section 160 shall remain unaffected.
(2) The per sons specified in subs ection (1) numbers 1 to 3 above shall be deemed equal to
their assistants and to persons who take part in the professional activity in preparation for the
profession. The persons specified in subs ection (1) numbers 1 to 3 above shall decide
whether these assistants should exercise their right to refuse to give information, unless
such a decision cannot be effected within a foreseeable period.
(3) The persons specified in subs ection (1) number 3 above may not refuse to give
information if they have been released from their obligation of secrecy. Such release from
the obligation of secrecy shall also apply to the assistants.
(4) The statutory notification duties applying to notaries and the obligations to disclose
information applying to the persons referred to in subs ection (1) number 3(b) above pursuant
to the Interest Information Ordinance of 26 January 2004 (Federal Law Gazette I, p. 128),
which was most recently amended by Article 4(28) of the Act of 22 September 2005 (Federal
Law Gaz ette I, p. 2809), in the respective applicable version, shall remain unaffected. Where
notification duties apply, notaries shall also be obliged to furnish documents and further
information.
Section 103
Right to withhold information for fear of prosecution for a crime or offence
Persons who are neither participants nor obliged to provide information for a participant may
refuse to answer any questions the reply to which would subject them, or one of the relatives
specified in s ection 15 above, to the risk o f criminal prosecution or proceedings under the
Act on Administrative Offences. They shall be advised of their right to withhold information. It
shall be mentioned in the record that such advice was provided.
Section 104
Refusal to render opinion and to pr esent documents
(1) To the extent that the disclosure of information may be refused, the rendering of opinion
and the presentation of documents or valuables may be refused as well. S ection 102(4),
second sentence, shall remain unaffected.
(2) The presentat ion of documents and valuables which are kept for the participant may not
be refused where the participant would be obliged to submit them, if held in his custody.
Business records and other records kept for the participant shall also count as documents
wh ich are stored for him.
Section 105
Relationship between duty of public entities to present information and documents
and their duty of secrecy
(1) The duty of secrecy imposed on authorities and other public entities, including the
Bundesbank, state banks und debt administrations, as well as the organs and officials
thereof, shall not apply with respect to their duty to present information and documents to the
revenue authorities.
(2) Subs ection (1) above shall not apply where authorities and the persons en trusted with
postal services are obliged by law to respect the privacy of correspondence, posts and
telecommunications.
Section 106
Limitation on the duty to present information and documents in the case of adverse
effects on the public interest
It shall n ot be permissible to request that information or documents be furnished where the
competent highest federal authority or the competent highest authority of a Land has stated

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 41 of 140
that presenting such information or documents would result in serious disadvantage s to the
Federation or to a Land.
V. Compensation of persons obliged to provide information and experts
Section 107
Compensation of persons obliged to provide information and experts
Persons obliged to provide information and experts consulted by the reven ue authority for
the purposes of evidence shall, upon application, be compensated or remunerated in
corresponding application of the Judicial Remuneration and Compensation Act. This shall
not apply to participants or persons obliged to fulfil an obligation to provide information for a
participant.
4th Subchapter
Time limits, deadlines, restitutio in integrum
Section 108
Time limits and deadlines
(1) S ections 187 to 193 of the Civil Code shall apply accordingly to the calculation of time
limits and the setti ng of deadlines inasmuch as subs ections (2) to (5) below do not provide
otherwise.
(2) A time period set by an authority shall commence on the date following disclosure of the
period except where the person concerned is informed otherwise.
(3) Where the ti me limit would otherwise end on a Sunday, an official holiday or a Saturday,
the time period shall end at the close of the next working day.
(4) Where an authority has to fulfil a task only for a given period, this period shall end at the
close of the last day thereof, even where this is a Sunday, an official holiday or a Saturday.
(5) A deadline fixed by an authority shall be observed even if it falls on a Sunday, an official
holiday or a Saturday.
(6) Where a time limit is expressed in hours, Sundays, off icial holidays and Saturdays shall
be included.
Section 109
Extension of time limits
(1) Time limits for the filing of tax returns and time limits fixed by a revenue authority may be
extended. Where such time limits have already expired, they may be extend ed
retrospectively, particularly if it would be inequitable to allow the legal consequences
resulting from expiration of the time limit to stand.
(2) The revenue authority may make the extension of the time limit dependent upon the
provision of collateral, or else combine it with a collateral clause under s ection 120.
Section 110
Restitutio in integrum
(1) Where a person has through no fault of his own been prevented from observing a
statutory time limit, he shall, upon application, be granted restitutio in integrum. The fault of a
representative shall be deemed to be that of the person he represents.
(2) The application shall be made within one month of the removal of the obstacle. The facts
justifying the application are to be established credibly when the application is made or
during the proceedings connected with the application. The neglected action shall be
subsequently effected within the application period. Where this is done, restitutio in integrum
may be granted even without application.
(3) No app lication for restitutio in integrum may be filed and the neglected action cannot be
subsequently effected following the expiration of one year from the end of the unobserved
time limit, except where it was impossible for this to be done within the period o f a year for
reasons of force majeure.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 42 of 140
(4) The application for restitutio in integrum shall be decided upon by the revenue authority
responsible for deciding on the matter of the neglected action.
5th Subchapter
Legal and administrative assistance
Section 111
Administrative assistance obligations
(1) All courts and authorities shall be obliged to provide such administrative assistance as is
necessary to execute the taxation process. S ection 102 shall remain unaffected.
(2) It shall not be deemed administrat ive assistance when
1. authorities assist each other in the context of a relationship in which one is
bound by the instructions of the other,
2. assistance consists in actions which already fall under the remit of the
requested authority.
(3) This provisio n shall not apply to debt administrations, credit institutions and commercial
enterprises of public -law entities.
(5) With respect to customs administration, the obligation to provide administrative
assistance shall also apply to those enterprises serving public transport or the public
movement of goods which have been specially appointed as auxiliary customs bodies by the
Federal Ministry of Finance, and to the staff thereof.
(5) S ections 105 and 106 shall be applied accordingly.
Section 112
Preconditions for and limitations to administrative assistance
(1) A revenue authority may request administrative assistance in particular when
1. for legal reasons, it cannot itself perform the official act,
2. for practical reasons, especially for lack of personnel or equipment needed to
perform the official act, it cannot itself perform the official act,
3. to carry out its tasks, it requires knowledge of facts which are unknown to it and
which it cannot itself establish,
4. to carry out its tasks, it requires documen ts or other evidence in the possession
of the requested authority,
5. it could only perform the official act at substantially greater expense than the
requested authority.
(2) The requested authority may not provide assistance when it is unable to do so fo r legal
reasons.
(3) The requested authority need not provide assistance when
1. another authority can provide the same assistance with much greater ease or at
much less expense,
2. it could only provide such assistance at disproportionately great expense,
3. taking into account the tasks of the requesting revenue authority, such
assistance would, as a result of its scope, seriously endanger the requested authority’s
capacity to meet its own duties.
(4) The requested authority may not refuse assistance on t he grounds that it considers the
request inappropriate for reasons other than those given in subs ection (3) above, or that it
considers the measures to be realised by the administrative assistance inappropriate.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 43 of 140
(5) Where the requested authority does not c onsider itself obliged to provide assistance, it
shall inform the requesting revenue authority accordingly. If the latter insists that
administrative assistance be provided, the decision as to whether or not an obligation to
furnish such assistance exists shall be taken by the responsible common supervisory
authority or, where no such authority exists, the supervisory authority with subject -matter
jurisdiction over the requested authority.
Section 113
Selecting an authority
Where there is more than one pote ntial provider of administrative assistance, assistance
shall where possible be requested of an authority of the lowest administrative level of the
administrative branch to which the requesting revenue authority belongs.
Section 114
Implementation of admin istrative assistance
(1) The permissibility of the measure to be realised by administrative assistance shall be
governed by the laws applying to the requesting revenue authority, the implementation of
administrative assistance by the laws applying to the r equested authority.
(2) The requesting revenue authority shall bear responsibility vis -à-vis the requested
authority for the legality of the measure to be taken. The requested authority shall be
responsible for implementing the administrative assistance.
Section 115
Costs of administrative assistance
(1) The requesting revenue authority shall not be required to pay the requested authority an
administrative fee for the provision of assistance. Where, in individual cases, expenses
exceed 25 euros, these shall be refunded to the requested authority upon request. Where
authorities of the same legal entity assist each other, no expenses shall be reimbursed.
(2) Where in implementing administrative assistance the requested authority performs an
official act for wh ich a fee must be paid, it shall be entitled to any costs caused for this
purpose by a third party (administrative fees, usage charges and expenses).
Section 116
Reporting tax crimes
(1) Courts and the authorities of the Federation, the Länder and municipa l institutions of
public administrations which are not revenue authorities must notify the Federal Central Tax
Office or, to the extent known, the revenue authorities responsible for the criminal tax
proceedings, of facts that have become known to them in the course of exercise of their
office and that suggest that a tax crime has been committed. Unless it is clear that the
revenue authorities responsible for the criminal tax proceedings have already been informed
directly, the Federal Central Tax Office sh all inform them of these facts. The revenue
authorities responsible for the criminal tax proceedings, excluding the authorities of the
federal customs administration, shall transmit the notification to the Federal Central Tax
Office unless it is clear that the latter has already been informed directly.
(2) S ection 105(2) shall apply accordingly.
Section 117
International legal and administrative assistance in tax matters
(1) The revenue authorities may avail themselves of international legal and administrat ive
assistance subject to the provisions of German law.
(2) The revenue authorities may provide international legal and administrative assistance on
the basis of nationally applicable international agreements, nationally applicable legal
instruments of the European Communities an d the EC Mutual Assistance Act.
(3) The revenue authorities may at their duty -bound discretion provide international legal and
administrative assistance upon request in other cases where

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 44 of 140
1. reciprocity is assured,
2. the requesting state guarantees that the information and the documents
supplied will be used only for the purposes of its taxation or criminal tax procedure
(including offence proceedings) and that the information and the documents supplied will
be disclosed only to such persons, authorities or courts as are concerned with the
processing of the tax case or the prosecution of the tax crime;
3. the requesting state guarantees that it is prepared to avoid any double taxation
on income, capital gains and assets by way of mutu al agreement procedure through the
appropriate adjustment of the basis of taxation, and
4. compliance with the request is not detrimental to the sovereignty, security,
public order or other essential interests of the Federation or its political subdivision s and
there is no danger of the person concerned in Germany incurring damage incompatible
with the purpose of the legal and administrative assistance in the event that a trade,
industrial, commercial or professional secret or a business process which is to be
communicated on the basis of the request is disclosed.
To the extent that international legal and administrative assistance concerns taxes
administered by the revenue authorities of the Länder, the Federal Ministry of Finance shall
take a decision in m utual agreement with the competent highest authority of that Land.
(4) When implementing legal and administrative assistance, the powers of the revenue
authorities and the rights and obligations of the participants and other persons shall be
based on the p rovisions applying to taxes as defined in s ection 1(1). S ection 114 shall apply
accordingly. S ection 91 shall apply accordingly with regard to domestic participants where
information and documents are transmitted; notwithstanding s ection 91(1), domestic
pa rticipants shall invariably be heard where legal and administrative assistance concerns
taxes administered by the revenue authorities of the Länder, unless VAT is concerned or
exceptional circumstances within the meaning of s ection 91(2) or (3) exist.
(5) For the purposes of promoting international cooperation, the Federal Ministry of Finance
shall be authorised, by way of ordinance with the consent of the Bundesrat, to enact
international agreements on mutual legal and administrative assistance in customs matters if
the obligations thus assumed do not go beyond the scope of the international legal and
administrative assistance permissible under this Code.
Second Chapter
Administrative acts
Section 118
Definition of administrative act
An administrative act s hall be any order, decision or other sovereign measure taken by an
authority to regulate an individual case in the sphere of public law and intended to have a
direct, external legal effect. A general order shall be an administrative act directed towards a
group of people defined or definable on the basis of general characteristics or relating to the
public law character of a matter or its use by the public at large.
Section 119
Clarity and form of an administrative act
(1) An administrative act shall be suf ficiently definite and precise in content.
(2) An administrative act may be issued in written, electronic, oral or other form. An oral
administrative act shall be confirmed in writing when there is a legitimate interest that this
should be done and the per son concerned requests this without undue delay.
(3) A written or electronic administrative act shall indicate the issuing authority. Furthermore,
it shall contain the signature or name of the head of the authority, his deputy or the person
appointed by hi m; this provision shall not apply to administrative acts issued using a
standard form or with the aide of automated mechanisms. Where the law requires that an

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 45 of 140
administrative act be in writing, the issuing authority shall be indicated on the qualified
certi ficate underlying the electronic signature or on an associated qualified attribute
certificate in the case of electronic administrative acts.
Section 120
Collateral clauses on administrative acts
(1) An administrative act to which a claim exists may be acc ompanied by a collateral clause
only when this is permitted by law or when it is designed to ensure that the legal
requirements for the administrative act are fulfilled.
(2) Notwithstanding the provisions of subs ection (1) above, an administrative act may be
issued in duty -bound discretion with:
1. a provision to the effect that a privilege or burden shall begin or end on a certain
date or shall apply for a certain period (time limit),
2. a provision to the effect that the commencement or ending of a privil ege or
burden shall depend upon a future occurrence which is uncertain (condition),
3. a reservation of revocation,
or be combined with
4. a provision requiring the beneficiary to perform, tolerate or omit to do a certain
action (obligation),
5. a reservat ion to the effect that an obligation may be subsequently introduced,
amended or supplemented.
(3) A collateral clause may not counteract the purpose of the administrative act.
Section 121
Reasons for an administrative act
(1) A written or electronic admini strative act, as well as an administrative act confirmed in
writing or electronically, shall be accompanied by a statement of reasons where this is
necessary for its comprehension.
(2) No statement of reasons shall be required:
1. where the revenue authori ty grants an application or acts upon a declaration
and the administrative act does not infringe upon the rights of another,
2. where the person for whom the administrative act is intended or who is affected
by it is already acquainted with the opinion of the revenue authority as to the material and
legal positions or is able to comprehend such without difficulty,
3. where the revenue authority issues similar administrative acts in large number
or with the help of automated mechanisms and individual cases d o not merit a statement
of reasons,
4. where this derives from a legal provision,
5. where a general order is publicly disclosed.
Section 122
Disclosure of an administrative act
(1) An administrative act shall be disclosed to the person for whom it is inte nded or who is
affected thereby. S ection 34(2) shall be applied accordingly. The administrative act may also
be disclosed to authorised representatives.
(2) A written administrative act sent by post shall be deemed as disclosed
1. on the third day after po sting if posted to an address within Germany,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 46 of 140
2. one month after posting if posted to an address outside Germany,
except where it was not received or was received at a later date; in case of doubt the
authority shall prove receipt of the administrative act and the date of receipt.
(2a) An administrative act sent electronically shall be deemed as disclosed on the third day
after sending except where it was not received or was received at a later date; in case of
doubt the authority shall prove receipt of the administrative act and the date of receipt.
(3) An administrative act may be publicly disclosed where this is permitted by law. A general
order may be publicly disclosed even where it is inappropriate to disclose it to those
concerned.
(4) The public disc losure of an administrative act shall be effected by advertising the
enacting terms in accordance with local custom. Such disclosure shall state where the
administrative act and its statement of reasons may be inspected. The administrative act
shall be dee med to have been disclosed two weeks after the date of advertising in
accordance with local custom. A general order may fix a different day for this purpose but in
no case may this be earlier than the date following advertisement.
(5) An administrative act shall be served where this is required by law or administrative
decision. The Act on the Administrative Service of Documents shall apply to the service of
administrative acts.
(6) The disclosure of an administrative act to a participant with simultaneous effect for and
against other participants shall be permissible to the extent that the participants have agreed
to this; these participants may subsequently request to receive a copy of the administrative
act.
(7) Where administrative acts concern a married couple or a married couple and their
children or single parents and their children, it shall suffice for disclosure to all concerned
where one copy is served to their joint address. Administrative acts shall be disclosed
individually to the participants w here they have so requested or where the revenue authority
is aware that serious differences of opinion exist between them.
Section 123
Appointment of an authorised recipient
A participant with no residence or habitual abode, registered office or business management
in Germany shall on request give to the revenue authority the name of an authorised
recipient in Germany within a reasonable period. Should he fail to do so, any document sent
to him shall be deemed as having been received one month after its po sting, and a
document transmitted electronically shall be regarded as having been received on the third
day after its transmission. This shall not apply if it is established that the document or the
electronic document did not reach the recipient at all or reached him at a later date. The
participant shall be informed of the legal consequences of the omission.
Section 124
Validity of an administrative act
(1) An administrative act shall take effect vis -à-vis the person for whom it is intended or who
is affe cted thereby at the moment it is disclosed to him. The administrative act shall apply in
accordance with its content as disclosed.
(2) An administrative act shall remain in effect for as long as it is not withdrawn, revoked,
otherwise cancelled or expires through the passage of time or for any other reason.
(3) An invalid administrative act shall have no effect.
Section 125
Invalidity of an administrative act
(1) An administrative act shall be invalid where it is very gravely erroneous and this is
apparent when all relevant circumstances are duly considered.
(2) Regardless of the conditions laid down in subs ection (1) above, an administrative act
shall be invalid if:

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 47 of 140
1. it is issued in written or electronic form but fails to indicate the issuing revenue
auth ority,
2. no person can comply with it for practical reasons,
3. it requires an illegal act to be committed, by virtue of which the conditions for a
criminal offence or an administrative offence are fulfilled,
4. it is contrary to public policy.
(3) An adm inistrative act shall not be invalid merely because:
1. provisions on local jurisdiction have not been observed,
2. a person excluded under s ection 82(1), first sentence, numbers 2 to 6 and
section 82(1), second sentence, is involved,
3. a committee requir ed by law to cooperate in the issue of the administrative act
did not or was unable to take the prescribed decision,
4. the cooperation required by law of another authority did not occur.
(4) Where the invalidity applies only to part of the administrative act, it shall be deemed
invalid in its entirety if the invalid part is so essential that the revenue authority would not
have issued the administrative act without it.
(5) The revenue authority may at any time ascertain invalidity ex officio; it must be
as certained upon application when the applicant has a legitimate interest in such.
Section 126
Remedying errors in procedure and form
(1) An infringement of the regulations governing procedure or form which does not render
the administrative act invalid unde r s ection 125 shall be ignored when
1. an application necessary to issue the administrative act is made subsequently,
2. a necessary statement of reasons is provided subsequently,
3. a necessary hearing of a participant is held subsequently,
4. a decision of a committee whose cooperation is required to issue the
administrative act is taken subsequently,
5. the necessary participation of another authority is obtained subsequently.
(2) Actions referred to in subs ection (1) numbers 2 to 5 above may be carried out
subsequently up until the trial court proceedings of a fiscal court matter have been
concluded.
(3) Where an administrative act lacks the necessary statement of reasons or has been
issued without the necessary hearing of a participant so that the admin istrative act was
unable to be contested in time, failure to observe the period for obj ection shall not be
considered a fault. The decisive event for restitutio in integrum under s ection 110(2) shall be
deemed to occur when the procedural action which was omitted is subsequently undertaken.
Section 127
Consequences of errors in procedure and form
A claim for the cancellation of an administrative act which is not invalid under s ection 125
may not be made solely on the grounds that the act came into being in breach of provisions
governing procedure, form or local jurisdiction if no other decision could have been taken in
the matter.
Section 128
Reinterpretation of an erroneous administrative act

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 48 of 140
(1) An erroneous administrative act may be reinterpreted into ano ther administrative act
where it has the same aim, could have been issued legitimately by the issuing revenue
authority using the same procedures and forms, and where the requirements for its issue are
fulfilled.
(2) Subs ection (1) above shall not apply wh ere the administrative act into which the
erroneous administrative act is to be reinterpreted would contradict the clearly recognisable
intention of the issuing revenue authority or where its legal consequences would be less
favourable for the person affec ted than those of the erroneous administrative act.
Furthermore, reinterpretation shall not be permissible where the withdrawal of the
administrative act would not be allowable.
(3) A decision which can only be issued as being bound by law may not be reint erpreted into
a discretionary decision.
(4) S ection 91 shall be applied accordingly.
Section 129
Obvious errors in issuing an administrative act
The revenue authority may at any time correct typographical mistakes, errors in calculation
and similar obvious errors which have occurred in issuing an administrative act.
Corr ections shall be made where the participant has a legitimate interest in such. Where
adjustment to a administrative act issued in writing is sought, the revenue authority shall be
entitled t o request submission of the document which is to be corrected.
Section 130
Withdrawal of an unlawful administrative act
(1) An unlawful administrative act may, even after it has become incontestable, be withdrawn
wholly or in part with ex nunc or retrospec tive effect.
(2) An administrative act which gives rise to a right or a substantial advantage in legal terms
or confirms such a right or advantage (beneficial administrative act) may only be withdrawn
where
1. it has been issued by an authority without the requisite subject -matter
jurisdiction,
2. it has been effected by iniquitous mains such as deceit, threat or bribery,
3. the beneficiary obtained the administrative act by providing information which
was essentially incorrect or incomplete,
4. the benefic iary was aware of its illegality, or was unaware of this due to gross
negligence.
(3) Where the revenue authority learns of facts which justify the withdrawal of an unlawful
beneficial administrative act, the withdrawal shall be permissible only within one year of the
date of gaining such knowledge. This shall not apply in the case of subs ection (2) number 2
above.
(4) Once the administrative act has become incontestable, the decision concerning
withdrawal shall be taken by the revenue authority responsible under the provisions
regarding local jurisdiction; this shall also apply where the administrative act to be withdrawn
has been issued by another revenue authority; s ection 26, second sentence, shall remain
unaffected.
Section 131
Revocation of a lawful ad ministrative act
(1) A lawful, non -beneficial administrative act may, even after it has become incontestable,
be revoked wholly or in part with ex nunc effect, except where an administrative act of like
content would have to be issued or where revocation i s impermissible for other reasons.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 49 of 140
(2) A lawful, beneficial administrative act may, even when it has become incontestable, be
revoked in whole or in part with ex nunc effect only when
1. revocation is permitted by law or a right of revocation is reserved i n the
administrative act itself,
2. the administrative act is combined with an obligation with which the beneficiary
has not complied with at all or in time,
3. the revenue authority would be entitled, as a result of subsequent changes in
circumstances, no t to issue the administrative act and if failure to revoke it would
endanger the public interest.
Section 130(3) shall apply accordingly.
(3) The revoked administrative act shall become null and void with the entry into force of the
revocation, provided th at the revenue authority has not determined a later date.
(4) Once the administrative act has become incontestable, decisions as to revocation shall
be taken by the revenue authority responsible under the provisions regarding local
jurisdiction; this shall also apply where the administrative act to be revoked has been issued
by another revenue authority.
Section 132
Withdrawal, revocation, cancellation and amendment in legal remedy proceedings
The provisions on withdrawal, revocation, cancellation and amend ment of administrative acts
shall also apply during obj ection proceedings and proceedings before the fiscal courts.
Section 130(2) and (3) and s ection 131(2) and (3) shall not prevent withdrawal and
revocation during the obj ection proceeding, or during the proceedings before a fiscal court,
of a beneficial administrative act that has been contested by a third party to the extent that
this remedies the obj ection or appeal.
Section 133
Return of documents and other items
Where an administrative act has been i ncontestably revoked or withdrawn, or where it is not
or no longer in effect for other reasons, the revenue authority may require such documents
or items as have been distributed as a result of the administrative act, and which serve to
prove the rights de riving from the administrative act or its exercise, to be returned. The
holder and, where this person is not the owner, also the owner of these documents or items
shall be obliged to return them. However, the holder or owner may require that the
documents or items be handed back to him once the revenue authority has marked them as
invalid; this shall not apply to items for which such a marking is impossible or cannot be
made with the necessary degree of visibility or permanence.
Fourth Part
Executing the ta xation procedure
First Chapter
Recording taxpayer data
1st Subchapter
Data relating to civil status and operations
Section 134
Data relating to civil status and operations
(1) For the purposes of recording details on persons and enterprises which are subje ct to
taxation, the municipalities may collect data relating to civil status and operations for the
revenue authorities. To this end, the municipalities shall have the powers set out in
sections 328 to 335.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 50 of 140
(2) The coll ection of details relating to civil s tatus shall not apply to those members of the
Federal Armed Forces, the federal police and the police who are housed in official quarters
and have no other accommodation.
(3) The governments of the Länder shall determine by way of ordinance the timing of d ata
collection. They may limit the scope of the coll ection (section 135) to certain municipalities
and certain details. The governments of the Länder may delegate these powers to the
highest revenue authorities by way of ordinance.
(4) The municipalities m ay link for their own purposes special surveys with the coll ection of
data relating to civil status and operations where a legal basis for these surveys exists. The
second sentence of subs ection (1) above shall not apply to such surveys.
Section 135
The ob ligation to cooperate in the coll ection of data relating to civil status and
operations
(1) The real estate owners shall be obliged to provide assistance in the coll ection of data
relating to civil status and operations. In particular, they shall indicate the persons who have
accommodation, living quarters, a permanent establishment, storage facilities or other
business premises on the property.
(2) The occupants of the accommodation and the sublessees shall provide on official forms,
in relation to themsel ves and to the persons belonging to their household, the information
needed for the coll ection of data relating to civil status and operations, especially that
pertaining to name, marital status, date and place of birth, religion, residence, gainful
occupa tion or employment, and permanent establishments.
(3) The proprietors of permanent establishments, storage facilities or other business
premises shall provide in relation to the operations carried on in these rooms the information
needed for the coll ection of data relating to operations and required by the official forms,
especially that pertaining to the nature and size of the operations and to the proprietor of the
operations.
Section 136
Notification of changes in data relating to civil status
The author ities for registering inhabitants shall notify the competent tax office of any changes
to the details under s ection 135 of which they have become aware pursuant to the
registration provisions of the Länder.
2nd Subchapter
Duties of disclosure
Section 137
The recording for tax purposes of corporations, associations and conglomerations of
assets
(1) Taxpayers who are not natural persons shall be obliged to notify the tax office
responsible under s ection 20 and the municipalities responsible for levying impers onal taxes
of the circumstances which have a bearing on registration for tax purposes, especially
establishment, attainment of legal capacity, change of legal form, transfer of place of
business management or registered office, and dissolution.
(2) Disclos ure of these reportable events shall be made within one month of their
occurrence.
Section 138
Reporting gainful occupation
(1) Whoever opens an agricultural and forestry undertaking, a commercial operation or a
permanent establishment shall notify the mun icipality in which this business or permanent
establishment is located of such on an officially prescribed form; the municipality shall inform
without undue delay the tax office responsible under s ection 22(1) of the content of the
notification. W here resp onsibility for determining the impersonal taxes has not been

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 51 of 140
conferred on the municipalities, the tax office responsible under s ection 22(2) shall take the
place of the municipality. Whoever takes up the provision of professional services shall notify
the tax office responsible under s ection 19 of such. The same shall apply with regard to the
relocation and the relinquishment of a business, a permanent establishment or professional
services.
(1a) Traders within the meaning of s ection 2 of the VAT Act may al so fulfil their reporting
obligations under subs ection (1) above electronically at the revenue authority responsible for
VAT.
(1b) In order to simplify the taxation procedure, the Federal Ministry of Finance may, via
ordinance and with the consent of the B undesrat, determine that traders within the meaning
of s ection 2 of the VAT Act shall, on the occasion of commencing a professional or
commercial activity, in addition to the notifications pursuant to subs ections (1) and (1a)
above, also provide informatio n to the revenue authority on the legal and actual
circumstances which are of relevance to taxation using an officially prescribed data set via
remote data transmission. The preconditions under which an electronic transmission may be
waived may be stipulat ed in the ordinance. S ection 150(6), second to ninth sentences, shall
apply accordingly.
(2) Taxpayers with residence, habitual abode, place of business management or registered
office within the territory of application of this Code shall inform the tax o ffice responsible
pursuant to s ections 18 to 20 on an officially prescribed form of:
1. the founding and acquisition of businesses and permanent establishments
abroad,
2. holdings, or their relinquishment or changes therein, in foreign unincorporated
compa nies,
3. the acquisition of holdings in a corporation, association of persons or
conglomeration of assets within the meaning of s ection 2(1) of the Corporation Tax Act
where this means that the holding reaches at least 10 per cent directly or at least 25 p er
cent indirectly of the capital or assets of the corporation, association of persons or
conglomeration of assets, or when the sum of the costs of acquisitions of all holdings
exceeds 150,000 euros.
(3) Disclosures under subs ections (1) and (1a) above sha ll be made within one month of the
reportable event. Disclosures under subs ection (2) above shall be made within five months
of the expiration of the calendar year in which the reportable event occurred.
Section 139
Registering operations in certain cases
(1) Whoever seeks to acquire or manufacture goods, the acquisition, manufacture, removal
from the manufacturing business or consumption within the manufacturing business of which
entails a liability for tax on consumption, shall register this with the comp etent revenue
authority before operations are commenced. The same shall apply to whoever wishes to
operate an enterprise to which special taxes on transactions apply.
(2) Conditions with respect to the timing, the form and the content of the registration m ay be
determined by way of ordinance. The ordinance shall be issued by the Federal Government
where taxes on transactions are concerned, and by the Federal Ministry of Finance in other
respects. An ordinance issued by the Federal Ministry of Finance shall require the consent of
the Bundesrat only to the extent that it concerns beer duty.
3rd Subchapter
Identifying tag
Section 139a
Identifying tag

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 52 of 140
(1) For the purposes of unambiguous identification in the taxation procedure, the Federal
Central Tax Office sha ll issue each taxpayer with a uniform and permanent means of
recognition (identifying tag), which shall be indicated on applications, declarations or
notifications addressed to revenue authorities. It shall consist of a series of digits that may
not be con structed or derived from other data relating to the taxpayer; the final digit shall be
a check digit. Natural persons shall receive an identification number, economic actors a
business identification number. The taxpayer shall be informed without undue del ay that he
or she has been assigned an identifying tag.
(2) A taxpayer for the purposes of this subchapter shall mean anyone who is liable for tax
under a tax law.
(3) Economic actors for the purposes of this subchapter shall mean:
1. natural persons who a re economically active,
2. legal persons,
3. associations of persons.
Section 139b
Identification number
(1) A natural person may not receive more than one identification number. An identification
number may only be issued once.
(2) The revenue authorities may only collect and use the identification number to the extent
that this is necessary for them to fulfil their legal duties or a legal provision expressly allows
or orders the coll ection or use of the identification number. Other public or non -public of fices
may
1. only collect or use the identification number to the extent that this is necessary
to allow data to be transmitted between them and the revenue authorities, or a legal
provision expressly allows or orders the coll ection and use of the identifi cation number,
2. organise their data according to the identification number or make them
accessible only to the extent that this is necessary for the regular transmission of data
between them and the revenue authorities.
Contract terms and declarations of consent which are designed to enable the coll ection or
use of the identification number which is impermissible under the above conditions shall be
deemed invalid.
(3) The Federal Central Tax Office shall save with regard to natural persons the following
data:
1. identification number,
2. business identification number,
3. surname,
4. previous names,
5. first names,
6. doctor title,
7. (rescinded)
8. date and place of birth,
9. sex,
10. current or last known address,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 53 of 140
11. competent revenue authorities,
12. bans on transmission pursuant to the Registration Law Framework Act and the
Länder legislation on registration.
13. date of death.
(4) The data listed in subs ection (3) above shall be saved in order to
1. ensure that a person has been issued with one identi fication number only, and
that an identification number is not issued more than once,
2. determine the identification number of a taxpayer,
3. distinguish which revenue authorities are responsible for a taxpayer,
4. be able to transfer to the competent off ices data which, pursuant to
supranational or international law, are to be received,
5. enable the revenue authorities to discharge their statutory responsibilities.
(5) The data listed in subs ection (3) above may be used only for the purposes named in
sub section (4) above. Bans on transmission under the Registration Law Framework Act and
the Länder legislation on registration shall be observed and likewise be transmitted in the
case of a permissible transmission of data. The third party to whom the data ar e transmitted
shall likewise observe the bans on transmission.
(6) For the purposes of issuing an identification number for the first time, the registration
authorities shall transmit to the Federal Central Tax Office the following data for each
resident r egistered with them as having sole residence or main residence in their jurisdiction:
1. surname,
2. previous names,
3. first names,
4. doctor title,
5. (rescinded)
6. date and place of birth,
7. sex,
8. current address of the sole residence or main reside nce.
9. day of moving into and out of the residence,
10. bans on transmission pursuant to the Registration Law Framework Act and the
Länder legislation on registration
To this end, the registration authorities shall issue each resident registered as having a sole
residence or main residence in their jurisdiction with a provisional recognition tag. They shall
transmit this together with the data pursuant to the first sentence above to the Federal
Central Tax Office. The data pursuant to the first sentence ab ove shall be transmitted from
the date on which the identifying tag has been introduced, which time shall be determined by
way of ordinance by the Federal Ministry of Finance on the basis of Article 97(5), first
sentence, of the Introductory Act to the Fis cal Code. The Federal Central Tax Office shall
inform the competent registration authority of the identification number issued to the
taxpayer, quoting the provisional recognition tag, for the purposes of having this saved in the
register, and shall subseq uently delete the provisional recognition tag. The data pursuant to
the first sentence, number 9, above shall be deleted at the latest upon expiration of calendar
month following the transmission by the registration authorities.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 54 of 140
(7) Where data relating to a birth as well as data relating to a person for whom hitherto no
identification number has been issued is saved, the registration authorities shall transmit to
the Federal Central Tax Office the data pursuant to subs ection (6), first sentence, above for
the purposes of allocating the identification number. Subs ection (6), second to sixth
sentences, above shall apply accordingly.
(8) The registration authority shall notify the Federal Central Tax Office of changes to the
data referred to in subs ection (6), first sentence, numbers 1 to 10, above as well as the day
of death in the event of a death, indicating the identification number or, where this has not
yet been allocated, the provisional recognition tag.
(9) The Federal Central Tax Office shall inform the registration authorities where it has
specific reason to suspect the incorrectness of the data transmitted to it by the registration
authorities.
Section 139c
Business identification number
(1) The business identification number shall be issued upon reque st of the competent
revenue authority. It shall begin with the letters “DE”. A business identification number may
only be issued once.
(2) The revenue authorities may collect and use the business identification number only to
the extent that this is necess ary for them to fulfil their legal duties or a legal provision
expressly allows or orders this. Other public and non -public offices may collect or use the
business identification number only to the extent that this is necessary to allow them to fulfil
thei r duties or their business purposes or for the transmission of data between them and the
revenue authorities. To the extent that the business identification number replaces other
numbers, legal provisions which govern transmission by the revenue authoritie s to other
authorities shall remain unaffected.
(3) The Federal Central Tax Office shall save with regard to natural persons who are
economically active the following data:
1. business identification number,
2. identification number,
3. company (s ections 17 et seqq of the Commercial Code) or name of the
enterprise,
4. former company names or names of the enterprise,
5. legal form
6. industry branch number,
7. official municipal code,
8. address of the enterprise, registered office,
9. entry in the register of companies (court of registration, date and number of
entry),
10. date on which operations were opened or time of commencement of activity,
11. date on which operations were terminated or time of ceasing of activity,
12. competent revenue authorities.
(4) The Federal Central Tax Office shall save with regard to legal persons the following data:
1. business identification number,
2. identifying tags of the legal representatives,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 55 of 140
3. company (s ections 17 et seqq of the Commercial Code),
4. former company nam es,
5. legal form
6. industry branch number,
7. official municipal code,
8. registered office pursuant to s ection 11, especially place of business
management,
9. date of the act of foundation of enterprise,
10. entry in the register of companies, cooperati ves or associations (court of
registration, date and number of entry),
11. date on which operations were opened or time of commencement of activity,
12. date on which operations were terminated or time of ceasing of activity,
13. date of liquidation,
14. data of removal from register,
15. associated enterprises,
16. competent revenue authorities.
(5) The Federal Central Tax Office shall save with regard to associations of persons the
following data:
1. business identification number,
2. identifying tags of the legal representatives,
3. identifying tags of the participants,
4. company (s ections 17 et seqq of the Commercial Code), or name of the
association of persons,
5. former company names or names of the association of persons,
6. legal form
7. industry br anch number,
8. official municipal code,
9. registered office pursuant to s ection 11, especially place of business
management,
10. date of the articles of partnership,
11. entry in the register of companies or partnerships (court of registration, date and
number of entry),
12. date on which operations were opened or time of commencement of activity,
13. date on which operations were terminated or time of ceasing of activity,
14. date of liquidation,
15. date of termination,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 56 of 140
16. data of removal from register ,
17. associated enterprises,
18. competent revenue authorities.
(6) The data indicated in subs ections (3) to (5) above shall be saved in order to
1. ensure that a business identification number already issued is not used again
for another economic actor,
2. determine the business identification number issued for an economic actor,
3. distinguish which revenue authorities are responsible,
4. allow the transfer to the competent offices of data which, pursuant to
supranational or international law, are to be received,
5. enable the revenue authorities to discharge their statutory responsibilities.
(7) The data listed in subs ection (3) above may be used only for the purposes named in
subs ection (6) above unless a legal provision expressly provides for another u se.
Section 139d
Authorisation to issue ordinances
The Federal Government shall determine with the consent of the Bundesrat by way of
ordinance:
1. organisational and technical measures to ensure tax secrecy, especially to
prevent unauthorised access to da ta protected by s ection 30,
2. guidelines on the issue of identification numbers pursuant to s ection 139b and
the business identification numbers pursuant to s ection 139c,
3. time limits upon whose expiration the data saved pursuant to s ections 139b and
13 9c shall be deleted, and
4. the form of and the process of data transfer pursuant to s ection 139b(6) to (9).
Second Chapter
Obligations to cooperate
1st Subchapter
The keeping of accounts and records
Section 140
Account -keeping and recording obligations de riving from other laws
Whoever is obliged under laws other than tax laws to keep accounts and records of
relevance for taxation shall be obliged to fulfil the ob¬ligations imposed by such other laws in
the interests of taxation as well.
Section 141
The obl igation of certain taxpayers to keep accounts
(1) Commercial traders and farmers and foresters who, according to the information of the
revenue authority, had had for the respective business
1. transactions, including tax -free transactions but excluding tr ansactions pursuant
to s ection 4 numbers 8 to 10 of the VAT Act, exceeding 500,000 euros in the calendar
year, or
2. (rescinded)

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 57 of 140
3. agricultural or forest land which they managed themselves and whose
economic value (s ection 46 of the Valuation Act) exceeds 25,000 euros, or
4. a profit from commercial operations of more than 50,000 euros in the financial
year, or
5. a profit from agricultural or forestry undertakings of more than 50,000 euros in
the calendar year
shall be obliged with respect to these operat ions to keep accounts and on the basis of
annual inventories to draw up reports even if they are not required to keep accounts by
section 140. S ections 238, 240, 241, 242(1) and s ections 243 to 256 of the Commercial
Code shall apply mutatis mutandis inasmu ch as the tax laws do not provide otherwise. In
applying number 3 above, the economic value of all areas managed by the farmer or forester
shall be decisive, irrespective of whether he owns them or not. With respect to farmers and
foresters who are obliged under numbers 1, 3 or 5 above to keep accounts, stock -taking
measures need not apply to standing timber.
(2) The obligation under subs ection (1) above shall be fulfilled from the beginning of the
financial year following disclosure of the notice through w hich the revenue authority indicated
the beginning of this obligation. The obligation shall end with the close of the financial year
following the financial year in which the revenue authority determines that the conditions
under subs ection (1) above no lo nger exist.
(3) The obligation to keep accounts shall be transferred to any person who takes over
management of the entire operations as owner or beneficial owner. An indication pursuant to
subs ection (2) above advertising the beginning of the obligation t o keep accounts shall not
be required.
(4) Subs ection (1) number 5 above in its current version shall be applied to profit beginning
in the calendar year 1980.
Section 142
Supplementary provisions for farmers and foresters
Farmers and foresters who are obl iged by s ection 141(1) numbers 1, 3 or 5 to keep accounts
shall maintain a list of crops in addition to their annual inventory and the annual reports. The
list of crops shall show the types of produce with which the self -managed land was cultivated
in the foregoing financial year.
Section 143
Recording the receipt of goods
(1) Commercial traders shall record the receipt of goods separately.
(2) All goods, including the raw materials, works -in-progress, auxiliary materials and
ingredients that the trader acq uires as part of his commercial operations for further sale or
for consumption, whether for a charge or free of charge, for his own account of for the
account of others, shall be recorded; this shall also apply where the goods are to be
processed or treate d before their further sale or consumption. Goods which in keeping with
the nature of the business are usually acquired for the business for further sale of for
consumption shall be recorded even where they are used for purposes other than those of
the bus iness.
(3) The records shall contain the following information:
1. the day of receipt of the goods or the date of the invoice,
2. the name or the company and the address of the supplier,
3. the usual trade description of the good,
4. the price of the good,
5. a reference to the receipt.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 58 of 140
Section 144
Recording the exit of goods
(1) Commercial traders who in keeping with the nature of their commercial business supply
on a regular basis other commercial traders with goods for further sale or consumption as
auxi liary material shall record separately the exit of goods recognisably destined for this
purpose.
(2) The trader shall also record all goods which he
1. delivers on invoice (on credit, on account or by way of offset), by way of
exchange or free of charge, o r
2. against cash payment where, because of the amount ordered, the good is sold
at a price below the normal price for consumers.
This shall not apply where the good is recognisably not destined for further commercial use.
(3) The records shall contain the following information:
1. the day of exit of the goods or the date of the invoice,
2. the name or the company and the address of the customer,
3. the usual trade description of the good,
4. the price of the good,
5. a reference to the receipt.
(4) The tra der shall issue for the exit of every good named in subsections (1) and (2) above a
receipt which contains the details listed in subsection (3) above as well as his name or the
company and his address. This shall not apply to the extent that, pursuant to s ection 14(2) of
the 1999 VAT Act, a credit note is issued by the recipient referred to therein or simplifications
are granted on the basis f section 14(6) of the 1999 VAT Act.
(5) Subs ections (1) to (4) above shall apply also with respect to farmers and fo resters who
are required by s ection 141 to keep accounts.
Section 145
General specifications relating to the keeping of accounts and records
(1) The accounts shall be kept in such a manner as to allow a competent third party to gain
an overview of the busi ness transactions and the enterprise’s state of affairs within a
reasonable period of time. The business transactions shall be traceable with respect to their
origin and course.
(2) Records shall be kept such that the taxation purpose which they are intend ed to serve
can be met.
Section 146
Formal rules on the keeping of accounts and record
(1) Accounts and records otherwise required shall be kept in a complete, correct, timely and
orderly manner. Cash receipts and payments shall be recorded on a daily basi s.
(2) Accounts and records otherwise required shall be kept and stored within the territory of
application of this Code. This shall not apply to the extent that for permanent establishments
outside the territory of application of this Code local provision s provide for an obligation to
keep accounts and records and this obligation is met. In such a case, as well as in the case
of controlled companies outside the territory of application of this Code, the results of the
foreign accounts shall be incorporated into the accounts of the German enterprise insofar as
they are of relevance for taxation. In this regard, any adjustments required in order to satisfy
the tax provisions within the territory of application of this Code shall be undertaken and
identified a s such.
(2a) Notwithstanding the provisions of subs ection (2), first sentence, above, the competent
revenue authority may upon written application by the taxpayer authorise the keeping and

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 59 of 140
storage of electronic accounts and other necessary electronic recor ds or parts thereof
outside the territory of application of this Code. The preconditions shall be that
1. the taxpayer informs the competent revenue authority of the location of the
data -processing system and, where commissioning a third party, provides th e name and
address thereof,
2. the taxpayer has properly complied with his duties arising from s ections 90, 93,
97, 140 to 147 and 200(1) and (2),
3. the access to data pursuant to s ection 147(6) is possible in full, and
4. taxation is not hampered hereby.
Where the revenue authority becomes aware of circumstances leading to the hampering of
taxation, it shall revoke the authorisation and require the retransfer without undue delay of
the electronic accounts and other necessary electronic records to the terr itory of application
of this Code. The competent revenue authority shall be informed without undue delay of a
change in the circumstances specified under the second sentence, number 1 above.
(2b) A fee for delay of 2,500 euros to 250,000 euros may be set w here the taxpayer fails to
comply with the request to retransfer his electronic accounts or his duties pursuant to
subs ection (2a), fourth sentence, above to afford the access to data pursuant to
section 147(6), to provide information or to submit requeste d documents within the meaning
of s ection 200(1) in the course of an external audit within a reasonable period of time
allowed to him for that purpose following notification by the competent revenue authority or
he has transferred his electronic bookkeepin g abroad without authorisation from the
competent revenue authority.
(3) The entries and records otherwise required shall be made in a modern language. W here
a language other than German is used, the revenue authority may require translations.
Where abbrev iations, figures, letters or symbols are used, each of their meanings shall be
clearly defined.
(4) An entry or record may not be changed in such a manner as to render the original
content no longer determinable. Furthermore, changes may not be made if the ir nature
renders it uncertain as to whether they were made at the time of original entry or at a later
stage.
(5) The accounts and the records otherwise required may also consist in the orderly filing of
vouchers or may be kept on data -storage devices to the extent that these forms of book –
keeping including the method used to this end are consistent with the principles of orderly
accounting; with respect to records which are to be made solely on the basis of tax laws, the
permissibility of the method emplo yed shall be determined on the basis of the purpose which
the records are intended to serve for taxation. W here accounts and the records otherwise
required are kept on data -storage devices, it shall be ensured, in particular, that, during the
storage perio d, the data are accessible at any time and can be rendered readable without
undue delay. This shall also apply with respect to the powers of the revenue authority
pursuant to s ection 147(6). Subs ections (1) to (4) above shall apply mutatis mutandis.
(6) Th ese formal rules shall also apply where the trader keeps accounts and records of
relevance for taxation without being obliged to do so.
Section 147
Formal rules on the storage of documents
(1) The following documents shall be stored separately:
1. account s and records, inventories, annual reports, situation reports, the opening
balance sheet as well as the operating instructions and other organisational documents
needed for their comprehension,
2. the trade or business letters received,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 60 of 140
3. reproductions of trade or business letters sent,
4. accounting records,
4a. documents which are to be attached to a customs declaration made by means
of a data -processing technique pursuant to Article 77(1) in conjunction with Article 62(2)
of the Customs Code, to the ext ent that the customs authorities elect not to have them
submitted in accordance with Article 77(2), first sentence, of the Customs Code or have
returned them following their submission,
5. other documents to the extent that these are of relevance for taxat ion.
(2) With the exception of the annual reports, the opening balance sheet and the documents
pursuant to subs ection (1) number 4a above, the documents listed under subs ection (1)
above may be stored as reproductions on picture -storage devices or on other data -storage
devices where this is commensurate with the principles of orderly accounting and it is
ensured that the reproductions or the data
1. correspond visually to the trade and business letters received and the
accounting records and correspond in t erms of content to the other documents when they
are rendered readable,
2. may, at any time during the storage period, be accessed, can be rendered
readable without undue delay and can be processed automatically.
(3) The documents indicated in subs ection (1) numbers 1, 4 and 4a above shall be stored for
a period of ten years, the other documents indicated in subs ection (1) above for six years,
provided that other tax laws do not permit shorter storage periods. Shorter storage periods
provided by non -tax law s shall have no effect on the period set out in the first sentence
above. However, the period of storage shall not expire to the extent that and as long as the
documents are of relevance for taxes for which the period for assessment has not yet
expired; s ection 169(2), second sentence, shall not apply.
(4) The storage period shall begin upon the end of the calendar year in which the last entry
was made in the accounts, the inventory, the opening balance sheet, the annual report or the
situation report drawn up, the trade or business letter received or sent, the accounting record
created, the record made or the other documents created.
(5) Whoever submits storable documents in the form of a reproduction on a picture -storage
device or other data -storage device s shall be required, at his own expense, to make
available any auxiliary aids needed to render the documents readable; should the revenue
authority so desire, he shall at his own expense print out without undue delay all or part of
the documents or furnish reproductions which are readable without auxiliary aids.
(6) Where the documents under subs ection (1) above have been created with the aid of a
data -processing system, the revenue authority shall be entitled within the context of an
external audit to view the saved data and to use the data -processing system to examine
these documents. It may also in the course of an external audit demand that the data are
automatically processed to its specifications or the saved documents and records are made
available to it on machine -readable data -storage devices. The costs shall be borne by the
taxpayer.
Section 147a
Provisions for the storage of the records and documents of certain taxpayers
Taxpayers whose sum of positive income pursuant to section 2(1) numbers 4 to 7 of the
Income Tax Act (surplus income) exceeds 500,000 euros in the calendar year shall store for
six years the records and documents concerning the income and income -related expenses
underlying the surplus income. In the case of joint assessment, the sum of the positive
income pursuant to the first sentence above of each spouse shall be decisive in determining
that the amount of 500,000 euros has been exceeded. The obligation pursuant to the first
sentence above shall be fulfilled from the beginning of th e calendar year following the

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 61 of 140
calendar year in which the sum of the positive income within the meaning of the first
sentence above exceeds 500,000 euros. The obligation pursuant to the first sentence above
shall end upon expiration of the fifth consecutive calendar year in which the preconditions of
the first sentence above are not fulfilled. Section 147(2), 147(3), third sentence, and 147(4)
to (6) shall apply accordingly. The first to third and fifth sentences above shall apply
accordingly in the cases in which the competent authority obligates the taxpayer to in future
store the records and documents referred to in the first sentence above because he has
failed to comply with his obligation to cooperate under section 90(2), third sentence.
Section 148
The authorisation of simplifications
The revenue authorities may in individual cases or for certain groups of cases authorise
simplifications where adherence to the accounting, recording and storage duties set out in
the tax laws causes undue hardship and whe re taxation is not hampered by the
simplifications. Simplifications pursuant to the first sentence above may be authorised
retroactively. The authorisation may be revoked.
2nd Subchapter
Tax returns
Section 149
Submission of tax returns
(1) The tax laws sh all determine the persons obliged to submit a tax return. Any person
invited by the revenue authority to submit a tax return shall also be required to do so. The
invitation may be issued by way of public notification. The obligation to submit a tax return
shall remain even where the revenue authority has estimated the basis of taxation
(section 162).
(2) Unless otherwise stipulated in the tax laws, tax returns relating to a calendar year or a
legally determined period shall be submitted at the latest five m onths after expiration of such.
For taxpayers who calculate profit from agricultural and forestry activity from a financial year
which deviates from the calendar year, the period shall not end before expiration of the fifth
month following the end of the f inancial year which began in the calendar year.
Section 150
Format and content of tax returns
(1) Tax returns shall be submitted on officially prescribed forms where an oral tax return is
not permitted. S ection 87a shall apply only to the extent that, on t he basis of a law or an
ordinance issued pursuant to subs ection (6) below, the tax return may be transmitted by
means of a machine -readable data -storage device or via remote data transmission. The
taxpayer shall calculate the tax in the tax return himself where this is required by law (self –
assessed tax return).
(2) The information contained in the tax returns shall be the truth to the best of the
declarant’s knowledge and belief. This shall be confirmed in writing where the form so
requires.
(3) Where the tax laws require the taxpayer to sign the tax return personally, signature by an
authorised party shall be permissible only where the taxpayer’s physical or mental health or
his extended absence prevents him from signing. A personal signature may be subseq uently
required where such hindrance ceases to exist.
(4) The tax returns shall be accompanied by the documents required by the tax laws. Third
parties shall be obliged to issue any certificates required for this purpose.
(5) The tax return form may includ e questions which are necessary to supplement the
taxation documents for statistical purposes pursuant to the Tax Statistics Act. Furthermore,
the revenue authorities shall be entitled to require from taxpayers information needed to
implement the Federal T raining Promotion Act. In verifying the information, the revenue

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 62 of 140
authorities shall have the same powers as those when clarifying circumstances of relevance
for taxation.
(6) In order to facilitate and simplify the automated taxation procedure, the Federal Ministry
of Finance may, via ordinance and with the consent of the Bundesrat, determine that and
under which conditions tax returns or other data necessary for the taxation procedure may
be transmitted, wholly or partly, via remote data transfer or on mach ine -readable data –
storage devices. The following may, in particular, be determined:
1. details regarding the format, content, processing and securing of the
transmittable data,
2. the nature of the data transmission,
3. jurisdiction for accepting receipt o f the transmittable data,
4. the obligations of third parties to cooperate and their liability if, as a result of the
data being incorrectly collected, processed or transmitted, taxes are understated or tax
advantages are obtained,
5. the scope and the for m of the taxpayer’s special declaration obligations needed
for this procedure.
A secure method which authenticates the sender of the data and guarantees the
confidentiality and integrity of the data set transmitted electronically shall be used for the
data transmission. The electronic ID function of the identity card may also be used for the
purpose of authenticating the sender of the data; the data required for that purpose may be
stored and used together with the other data transmitted. The method shall b e determined by
the Federal Ministry of Finance, in consultation with the Federal Ministry of the Interior, via
ordinance and with the consent of the Bundesrat. The ordinance may provide for exceptions
from the obligation to use this method. Consent from t he Bundesrat for an ordinance under
the first and fifth sentences above shall not be required to the extent that motor vehicle tax,
insurance tax and excises duties with the exception of beer duty are concerned. In setting
out provisions for the transmissi on of data, reference may be made in the ordinance to
publications of expert bodies. In this regard, the date of the publication, the reference source
and an office where the publication is securely archived shall be indicated. S ection 87a(3),
second sente nce, shall not be applied.
(7) To the extent the tax laws require the taxpayer to transmit the tax return using an officially
prescribed data set via remote data transmission, the Federal Ministry of Finance may, via
ordinance and with the consent of the B undesrat, determine the details regarding the method
for electronic transmission; subs ection (6), second to ninth sentences, above shall apply
accordingly.
(8) Where the tax laws require that the revenue authority may, upon application to avoid
undue hards hip, waive a transmission of the tax return using an officially prescribed data set
via remote data transmission, such an application shall be complied with where a submission
of the return using an officially prescribed data set via remote data transmissi on is
economically or personally unreasonable for the taxpayer. This shall in particular be the case
where the creation of the technical means for a remote data transmission of the officially
prescribed data set would be possible only at considerable finan cial expense or where the
taxpayer’s individual knowledge and skills mean he is unable or not fully able to use the
means of remote data transmission.
Section 151
Recording tax returns at the offices of the authorities
Tax returns which are to be submitted in writing may be declared for record at the offices of
the revenue authority responsible where the personal circumstances of the taxpayer are
such that he cannot be expected to provide the returns in writing, especially where he is not

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 63 of 140
in a position to m eet legal requirements to calculate the tax himself or have it calculated by a
third party.
Section 152
Late -filing penalty
(1) A late -filing penalty may be set against anyone failing to meet his obligation to submit a
tax return at all or on time. The lat e-filing penalty shall not be set where such failure appears
excusable. Default by a legal representative or an aide shall be deemed equal to personal
default.
(2) The late -filing penalty may not exceed 10 per cent of the assessed tax or of the assessed
basic amount and shall be no more than 25,000 euros. In assessing the late -filing penalty, in
addition to its purpose of obliging taxpayers to submit their tax returns on time, the length of
time by which the deadline has been exceeded, the amount of the pa yment claim arising
from the tax assessment, the benefits gained from the delayed submission of the tax return
and the degree of fault and the economic position of the taxpayer shall be taken into
consideration.
(3) As a rule, the late -filing penalty shall be assessed concurrently with the tax or the basic
impersonal tax amount.
(4) Subs ections (1) to (3) above shall apply with respect to tax returns for tax bases which
have to be determined separately subject to the proviso that, in applying the first sent ence of
subs ection (2) above, the taxation effects are to be estimated.
(5) The Federal Ministry of Finance may, in agreement with the Bundesrat, issue general
administrative provisions on the late -filing penalty, especially with regard to its assessment i n
the automated taxation procedure. It may also determine the conditions under which the
assessment of a late -filing penalty should be refrained from. The general administrative
provisions shall not require consent by the Bundesrat where they concern impor t/export
duties and excise duties.
Section 153
Corr ection of returns
(1) Where a taxpayer subsequently realises before the period for assessment has elapsed
1. that a return submitted by him or for him is incorrect or incomplete and that this
can lead or h as already led to an understatement of tax, or
2. that a tax amount payable by way of tax mark or tax stamp was not paid in the
correct amount,
he shall be obliged to indicate such without undue delay, and to effect the necessary
corrections. This obligati on shall also concern the taxpayer’s universal successor and the
persons acting for the universal successor or the taxpayer pursuant to s ections 34 and 35.
(2) The notification obligation shall further apply where the conditions for tax exemption, tax
redu ction or other tax privileges subsequently cease to exist, whether in full or in part.
(3) Whoever wishes to use goods for which a tax privilege has been allowed subject to a
condition in a manner which does not correspond to this condition shall be oblige d to advise
the revenue authority of such in advance.
3rd Subchapter
Authenticity of accounts
Section 154
Authenticity of accounts
(1) No one may under a false or fictitious name, for himself or for a third party, open an
account or cause entries to be mad e in an account, give into safe custody or pledge
valuables (money, securities, precious objects) or rent a safety deposit box.
(2) Whoever keeps accounts, holds valuables in safe custody or as a pledge or rents out
safety deposit boxes shall make certain before doing so of the identity and the address of the

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 64 of 140
authorised drawer and shall record the relevant particulars in suitable form, in the case of an
account in the account itself. They shall ensure that they are able at all times to furnish in –
formation on the accounts or safety deposit boxes over which a person is authorised to dis –
pose.
(3) In the event of contravention of subs ection (1) above, credit balances, valuables and the
contents of safety deposit boxes may be returned only with the consent of t he tax office re –
sponsible for assessing the authorised drawer for income and corporation tax.
Third Chapter
Assessment and determination procedures
1st Subchapter
Tax assessment
I. General provisions
Section 155
Assessment of taxes
(1) Unless otherwise pr escribed, the taxes shall be assessed by the revenue authority by
way of tax assessment notice. The tax assessment notice shall be the administrative act
disclosed pursuant to s ection 122(1). This shall also apply with respect to the complete or
partial ex emption from a tax and for the dismissal of an application for tax assessment.
(2) A tax assessment notice may be issued even where a basic assessment notice has not
yet been issued.
(3) Where several taxpayers owe the tax as joint and several debtors, con solidated tax
assessment notices may be issued against them. Administrative acts on ancillary tax
payments or other claims to which this Code applies may be issued against one or more
taxpayers in combination with consolidated tax assessment notices. This shall also apply
where the legal relationship between the taxpayers is such that assessed taxes, ancillary tax
payments or other claims are not to be borne by all participants.
(4) The provisions applicable to tax assessment shall be applied mutatis mutand is with
respect to the assessment of a tax rebate.
Section 156
Refraining from tax assessment
(1) In order to simplify administration, the Federal Ministry of Finance may prescribe by way
of ordinance that taxes and ancillary tax payments shall not be asse ssed where the amount
to be assessed is unlikely to exceed a certain amount to be determined by this ordinance;
the amount to be determined shall not exceed 10 euros. The ordinance shall not require the
agreement of the Bundesrat where it concerns import/e xport duties and excise duties, with
the exception of beer duty.
(2) The assessment of taxes and ancillary tax payments may be refrained from where it is
clear that coll ection will not lead to the desired result or where the costs of collection,
including assessment, are not proportionate to the amount.
Section 157
Form and content of tax assessment notices
(1) Tax assessment notices shall be issued in writing unless otherwise stipulated. Written tax
assessment notices shall identify the type and amount of the assessed tax and indicate the
person owing the tax. Furthermore, they shall be accompanied by advice indicating which
legal remedy is permissible, the time period for submitting such remedy, and the authority to
which this remedy is to be submitted.
(2) The determination of the basis of taxation shall constitute a part of the tax assessment
notice not separately contestable by legal remedy where the tax basis is not determined
separately.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 65 of 140
Section 158
Validity of accounts
The accounts and records of the taxpayer which correspond to the provisions of
sections 140 to 148 shall serve as the basis for taxation to the extent that the individual
circumstances give no reason to object to their formal correctness.
Section 159
Proof of fiduciary status
(1) Whoever claims to own or possess rights in his name or items in his possession merely
as trustee, representative of a third party, or pledgee shall be required upon request to prove
to whom the rights or items belong; failure to do so shall result in their being routinely
attributed to him. This shall not have the effect of restricting the right of the revenue authority
to investigate the matter.
(2) S ection 102 shall remain unaffected.
Section 160
Naming creditors and the recipients of payments
(1) Debts and othe r burdens, business expenditure, income -related expenses and other
expenses shall as a matter of routine not be considered for tax purposes where the taxpayer
does not meet the demands of the revenue authority to provide precise details of the names
of the creditors or recipients. The right of the revenue authority to investigate the matter shall
remain unaffected.
(2) S ection 102 shall remain unaffected.
Section 161
Inventory shortfalls
Where, within the context of a prescribed or officially conducted inve ntory, shortfalls are
determined with respect to goods subject to excise duty, it shall be assumed that an excise
duty has arisen with respect to the missing goods or that a conditional excise duty has
become unconditional where it cannot be established cr edibly that the missing goods are the
result of circumstances for which tax would not have to be paid and which do not cause a
conditional tax to become unconditional. In case of doubt, the tax shall be deemed to have
arisen or become unconditional at the point in time at which the inventory is carried out.
Section 162
Estimating the basis of taxation
(1) Where the revenue authority cannot determine or calculate the basis of taxation, the
revenue authority shall estimate it. All circumstances which have an impact on the estimate
shall be taken into account.
(2) An estimate shall be undertaken in particular where the taxpayer is not willing to provide
sufficient explanation regarding his details or refuses to give further information or a sworn
statement or b reaches his obligation to cooperate pursuant to s ection 90(2). The same shall
apply where the taxpayer cannot provide accounts or records which he is obliged under tax
laws to keep, where the accounts or the records cannot be used as a basis for taxation
pursuant to s ection 158 or where there are factual indications of the incorrectness or
incompleteness of the details provided by the taxpayer on taxable income or business asset
increases and the taxpayer fails to give his consent pursuant to s ection 93(7), first sentence,
number 5. Where the taxpayer contravenes his obligation to cooperate under s ection 90(2),
third sentence, it shall be refutably assumed that taxable income in states or territories within
the meaning of s ection 90(2), third sentence exists or is higher than the income declared.
(3) Where a taxpayer contravenes his obligation to cooperate under s ection 90(3) by not
submitting the records or where records submitted are essentially of no use or where it is
determined that the taxpayer has not drawn up records within the meaning of s ection 90(3),
third sentence, in a timely manner, it shall be refutably assumed that his income which is
subject to tax in Germany and whose determination the records within the meaning of

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 66 of 140
section 90(3) serve is high er than the income he declared. Where in such cases the revenue
authority must conduct an estimate and where this income can only be determined within a
certain scale, especially only on the basis of price ranges, this scale may be fully exhausted
to the d etriment of the taxpayer. Where despite the submission of usable records by the
taxpayer there are indications that his income would, taking into account the arm’s length
approach, be higher than the income declared on the basis of the records, and where
corresponding doubts cannot be clarified on account of this because a foreign associated
person does not fulfil his obligation to cooperate pursuant to s ection 90(2) or his obligation to
provide information pursuant to s ection 93(1), the second sentence abo ve shall be applied
accordingly.
(4) Where a taxpayer does not submit records within the meaning of s ection 90(3), or where
submitted records are essentially of no use, a surcharge of 5,000 euros shall be set. The
surcharge shall be at least 5 per cent and at most 10 per cent of the additional income that
arises from the corr ection after applying subs ection (3) above where this leads to a
surcharge of more than 5,000 euros. W here there is a delay in submitting usable records,
the surcharge may total up to 1 ,000,000 euros, and shall be at least 100 euros for each full
day beyond the date of the deadline. Where the revenue authorities are allowed discretion
with respect to the extent of the surcharge, in addition to its purpose of obliging the taxpayer
to draw up and submit in a timely manner the records within the meaning of s ection 90(3),
the benefit gained by the taxpayer and, in the case of delayed submission, the length of time
by which the deadline has been exceeded shall be taken into account. No surchar ge shall be
set where non -fulfilment of the obligations under s ection 90(3) appears excusable or where
default is only minor. Default by a legal representative or aide shall be deemed equal to
personal default. The surcharge shall be set as a matter of rou tine once the external audit
has been completed.
(5) In the cases outlined in s ection 155(2), the basis of taxation to be assessed in a basic
assessment notice may be estimated.
Section 163
Divergent assessment of taxes on equitable grounds
Taxes may be as sessed at a lower amount and individual bases of taxation which increase
the tax may be ignored in assessing the tax where the levy of the tax would be inequitable
depending on the individual case. W ith the consent of the taxpayer, it shall be permissible
with regard to taxes on income for individual bases of taxation, where these increase the tax,
to be taken into account at a later point in time and, where they reduce the tax, to be taken
into account at an earlier point in time when assessing the tax. Th e decision on the divergent
assessment can be issued in conjunction with the assessment of taxes.
Section 164
Tax assessment subject to re -examination
(1) As long as the tax case has not been subject to a final audit, taxes may be assessed
generally or in individual cases on a provisional basis subject to re -examination without
justification being required. Assessment of a prepayment shall always be a tax assessment
subject to re -examination.
(2) The tax assessment may be cancelled or amended for as long a s the proviso remains in
effect. The taxpayer may apply for the cancellation or amendment of the tax assessment at
any time. However, the relevant decision may be deferred until a final audit of the tax case,
which shall be undertaken within a suitable tim eframe.
(3) The proviso of re -examination may be cancelled at any time. The cancellation shall be
equivalent to a tax assessment not subject to re -examination; s ection 157(1), first and third
sentences, shall apply mutatis mutandis. The proviso shall be wi thdrawn where, following an
external audit, no changes arise vis -à-vis the tax assessment subject to re -examination.
(4) The proviso of re -examination shall no longer apply where the period for assessment
expires. S ection 169(2), second sentence, and s ecti on 171(7), (8) and (10) shall not be
applied.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 67 of 140
Section 165
Provisional assessment of taxes, suspension of tax assessment
(1) A tax may be assessed provisionally where there is uncertainty as to whether the
prerequisites required for the tax to come into eff ect have been met. This provision shall also
be applied where
1. there is uncertainty as to whether and when agreements with other states on
taxation (s ection 2) which have a positive effect for the taxpayer come into effect with
respect to the assessment of taxes,
2. the Federal Constitutional Court has determined the incompatibility of a tax law
with the Basic Law of Germany and the legislator is obliged to make new provisions,
3. the compatibility of a tax law with primary law is the subject of proceedin gs
before the Court of Justice of the European Communities, the Federal Constitutional
Court or a highest federal court, or
4. the interpretation of a tax law is the subject of proceedings before the Federal
Fiscal Court.
The scope of and reason for the pr ovisional character shall be indicated. Given the
preconditions of the first and second sentences above, the tax assessment can also be
suspended against or without provision of collateral.
(2) The revenue authority may cancel or amend a tax assessment to the extent that it has
assessed the tax on a provisional basis. W hen the uncertainty has been removed, a
provisional assessment of taxes shall be cancelled, amended or declared final; any
suspended assessment of taxes shall be subsequently continued. In th e cases outlined in
subs ection (1), second sentence, number 4 above, the uncertainty shall cease as soon as it
clear that the principles of the ruling of the Federal Fiscal Court are to be applied in general
above and beyond the individual case ruled on. I n the cases outlined in subs ection (1),
second sentence, above a provisional assessment of taxes pursuant to the second sentence
above shall be declared final only upon application by the taxpayer when it cannot be
cancelled or amended.
(3) The provisional assessment of taxes may be issued in conjunction with a tax assessment
subject to re -examination.
Section 166
Third party effects of the tax assessment
Where the tax has been incontestably assessed with respect to the taxpayer, in addition to a
universal successor, anyone who would have been in a position to contest the assessment
notice issued against the taxpayer as his representative, authorised nominee or by virtue of
his own rights shall also be obliged to accept the validity of this.
Section 167
Self -assessed tax return, use of tax marks or tax stamps
(1) Where a tax has to be self -assessed as a result of a statutory obligation (s ection 150(1),
third sentence), an assessment of the tax pursuant to s ection 155 shall be required only
where the assessme nt leads to a divergent tax or the persons owing the tax or liability do not
submit the self -assessed tax return. The first sentence above shall apply mutatis mutandis
where because of a statutory obligation the tax is to be paid by applying tax marks or t ax
stamps. Where following an external audit within the meaning of s ection 193(2) number 1 the
person owing the tax or liability recognises in writing his obligation to pay, such recognition
shall be deemed equal to a self -assessed tax return.
(2) Self -ass essed tax returns shall also be deemed to have been submitted on time when
they are received by the responsible payments office with the time period allowed. This shall
not apply to import/export duties and excise duties.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 68 of 140
Section 168
Effects of a self -asse ssed tax return
A self -assessed tax return shall be deemed equivalent to a tax assessment subject to re –
examination. W here the self -assessed tax return results in a reduction in the tax payable up
to that point or to a tax rebate, the first sentence above shall apply only when the revenue
authority agrees. The agreement shall not require a particular form.
II. Period of limitation for the assessment
Section 169
Period for assessment
(1) A tax assessment and its cancellation or amendment shall be no longer p ermissible once
the period for assessment has expired. This shall also apply with respect to
corr ections relating to obvious errors pursuant to s ection 129. The deadline shall be deemed
to have been met where, before the period for assessment has expired,
1. the tax assessment notice has left the domain of the revenue authority
responsible for assessing the tax, or
2. in the case of public service, notification is advertised or disclosed pursuant to
section 10(2), first sentence, of the Act on the Administr ative Service of Documents.
(2) The period for assessment shall be:
1. one year
for excise duties and excise duty rebates,
2. four years
for taxes and tax rebates which are not taxes or tax rebates within the meaning
of number 1 above or import or export duties within the meaning of Article 4 numbers 10
and 11 of the Customs Code.
The period for assessment shall be ten years where taxes have been evaded and five years
where they have been understated through gross negligence. This shall also apply where
the tax evasion or the tax understatement through gross negligence has not been committed
by the tax debtor or a person of whose services he avails himself to meet his tax obligations,
unless the tax debtor shows that his wealth has not increased as a resul t of the act and that
this act was not brought about by his omission to take the due precautions necessary to
prevent an understatement of tax.
Section 170
Beginning of the period for assessment
(1) The period for assessment shall begin upon expiration of the calendar year in which the
tax has arisen or a conditional tax has become unconditional.
(2) Notwithstanding the provisions of subs ection (1) above, the period for assessment shall
begin
1. where a tax return or a self -assessed tax return is to be subm itted or a notice
posted, upon expiration of the calendar year in which the tax return, the self -assessed tax
return or the notice is submitted, at the latest however upon expiration of the third
calendar year following the calendar year in which the tax h as arisen, unless
subs ection (1) above prescribes that the period for assessment shall begin later,
2. where a tax that is to be paid by way of tax marks or tax stamps, upon
expiration of the calendar year in which tax marks or tax stamps have been used fo r the
tax case, at the latest however upon expiration of the third calendar year following the
calendar year in which the tax marks or tax stamps should have been used.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 69 of 140
This shall not apply to excise duties, excluding energy duty on natural gas and electri city
duty.
(3) Where a tax or tax rebate is assessed upon application only, the period for the
cancellation or amendment of this assessment or its corr ection pursuant to s ection 129 shall
not begin before expiration of the calendar year in which the applic ation is made.
(4) Where by application to capital tax or real property tax of subs ection (2) number 1 above
the date of commencement of the period for assessment is postponed, the date of
commencement of the period for assessment for the subsequent calend ar years of the main
assessment period shall be postponed by the same amount of time.
(5) The period for assessment pursuant to subs ection (1) or (2) above with respect to
inheritance tax (gift tax) shall not begin
1. for acquisition by reason of death, be fore expiration of the calendar year in
which the transferee has become aware of the transfer,
2. for endowment, before expiration of the calendar year in which the endower has
died or the revenue authority has become aware of the endowment executed,
3. for transfer of property for particular purpose between living persons, before
expiration of the calendar year in which the obligation has been met.
(6) In the case of securities tax, the period for assessment shall not begin before expiration
of the calenda r year in which the bill of exchange has fallen due.
Section 171
Suspension of expiration
(1) The period for assessment shall not expire for as long as the tax assessment cannot be
undertaken within the last six months of the period as a result of force ma jeure.
(2) Where an obvious error has occurred in issuing a tax assessment notice, the period for
assessment shall not terminate before expiration of one year following notification of this tax
assessment notice.
(3) Where an application for tax assessment , or cancellation of or amendment to a tax
assessment, or its corr ection pursuant to s ection 129, is made outside of obj ection or legal
proceedings, the period for assessment shall not expire before an incontestable decision has
been reached on the applica tion.
(3a) Where a tax assessment notice is contested by way of obj ection or legal proceedings,
the period for assessment shall not expire before an incontestable decision has been
reached on the legal remedy; this shall also apply where the action is firs t brought when the
period for assessment has expired. The expiration of the period for assessment shall be
suspended with regard to the entire tax claim; this shall not apply where the legal remedy is
impermissible. In the cases of s ections 100(1), first s entence, 100(2), second sentence,
100(3), first sentence, and 101 of the Code of Procedure for Fiscal Courts, a decision on the
legal remedy shall become incontestable only once a tax assessment notice issued on the
basis of the aforementioned provisions h as become incontestable.
(4) Where an external audit is commenced before the period for assessment has expired or
where its commencement is postponed upon application by the taxpayer, the period for
assessment of the taxes in relation to which the external audit has been initiated or, in the
case of a postponed audit, is to be initiated, shall not expire before the tax assessment
notices to be issued on the basis of the external audit have become incontestable or before
three months have expired following d isclosure of the notification pursuant to s ection 202(1),
third sentence. This shall not apply where an external audit is interrupted immediately after
its commencement for a period of more than six months for reasons for which the revenue
authority bears responsibility. The period for assessment shall end at the latest when the
periods named in s ection 169(2) have ended since expiration of the calendar year in which
the final meeting has taken place or, in the absence of such, since expiration of the calen dar

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 70 of 140
year in which the last investigations as part of the external audit have taken place; a
suspension of expiration pursuant to other provisions shall remain unaffected.
(5) Where the customs investigation offices or the offices of the revenue authorities of a
Land charged with tax investigations begin the process of calculating the bases of taxation
for the taxpayer before expiration of the period for assessment, the period for assessment
shall not expire before the tax assessment notices to be issued on the basis of the
calculations have become incontestable; subs ection (4), second sentence, above shall apply
mutatis mutandis. The same shall apply where the taxpayer has been informed before
expiration of the period for assessment of the initiation of crim inal tax proceedings or
administrative fine proceedings as a result of a tax offence; s ection 169(1), third sentence,
shall apply mutatis mutandis.
(6) Where an external audit of the taxpayer cannot be carried out in the territory of
application of this Co de, the expiration of the period for assessment shall also be suspended
by other investigative actions within the meaning of s ection 92 until the tax assessment
notices issued on the basis of these investigations have become incontestable. The
suspension o f expiration shall only then become effective, however, where the taxpayer has
been informed of the commencement of investigations under the first sentence above before
the period for assessment has expired; s ection 169(1), third sentence, shall apply muta tis
mutandis.
(7) In the cases mentioned in s ection 169(2), second sentence, the period for assessment
shall not end before the period of limitation for prosecution of the tax crime or tax offence has
become time -barred.
(8) Where pursuant to s ection 165 t he assessment of a tax has been suspended or the tax
has been provisionally assessed, the period for assessment shall not end before expiration
of one year after the uncertainty has been removed and the revenue authority has been
informed of such. In the c ases referred to in s ection 165(1), second sentence, the period for
assessment shall not end before expiration of two years after the uncertainty has been
removed and the revenue authority has been informed of such.
(9) Where the taxpayer posts notificatio n pursuant to s ections 153, 371 and 378(3) before
the period for assessment has expired, the period for assessment shall not end before
expiration of one year following receipt of the notification.
(10) To the extent that a notice of determination, a basic impersonal tax assessment notice
or another administrative measure is binding (basic assessment notice) for the assessment
of a tax, the period for assessment shall not end before expiration of two years following
notification of the basic assessment noti ce. W here the expiration of the period for
assessment with respect to the part of the tax for which the basic assessment notice is not
binding is suspended pursuant to subs ection (4) above, the period for assessment for the
part of the tax for which the ba sic assessment notice is binding shall not end before
expiration of the period suspended pursuant to subs ection (4) above.
(11) Where a person incapable of contracting or with limited ability to contract has no legal
representative, the period for assessme nt shall not end before expiration of six months after
the point in time at which the person acquires unlimited ability to contract or the lack of
representation is remedied. The shall also apply to the extent that a custodian has been
appointed for a pers on and reservation of consent pursuant to s ection 1903 of the Civil Code
has been ordered, but the custodian has died or in some other manner is no longer available
or is prevented from representing the person on legal grounds.
(12) Where a tax is imposed on an inheritance, the period for assessment shall not end
before expiration of six months after the point in time at which the inheritance is assumed by
the heir or bankruptcy proceedings have been initiated with respect to the inheritance, or
from which the tax can be assessed against a representative.
(13) Where, before expiration of the period for assessment, a tax which has not yet been
assessed is registered in bankruptcy proceedings, the period for assessment shall not end
before expiration of three months after the bankruptcy proceedings have been concluded.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 71 of 140
(14) The period for assessment for a tax claim shall not end for as long as the period of
limitations for an associated refund claim pursuant to s ection 37(2) has not become time –
barred (s ection 228).
III. Finality
Section 172
Cancelling and amending tax assessment notices
(1) A tax assessment notice, to the extent that it has not been issued provisionally or subject
to re -examination, may only be cancelled or amended
1. where it concerns excise duties,
2. where it concerns taxes other than import and export duties within the meaning
of Article 4 numbers 10 and 11 of the Customs Code or excise duties,
a) provided that the taxpayer agrees or the essence of his application is met;
however, this shal l apply to the benefit of the taxpayer only to the extent that he
has agreed or submitted the application before the period for obj ection has
expired or to the extent that the revenue authority remedies an obj ection or legal
proceedings,
b) to the extent t hat it has been issued by an authority which is not responsible,
c) to the extent that it has been effected by dishonest means such as deceit,
threat or bribery,
d) to the extent that this is otherwise permitted by law; s ections 130 and 131
shall not apply .
This shall also apply where the tax assessment notice has been confirmed or amended by a
ruling on an objection. 2(a) of the first sentence above shall equally be applied in the cases
mentioned in the second sentence above where the taxpayer has agreed o r submitted the
application before the period for legal proceedings has expired; declarations and evidence
which pursuant to s ection 364b(2) were not admitted in the obj ection ruling shall not be taken
into account thereby.
(2) Subs ection (1) above shall a lso apply to an administrative act with which an application
for a tax assessment notice to be issued, cancelled or amended has been rejected in full or
in part.
(3) Pending applications for cancellation or amendment of a tax assessment that are made
outsi de of obj ection or legal proceedings which concern a legal issue ruled on by the Court
of the European Communities, the Federal Constitutional Court or the Federal Fiscal Court
and which cannot be met following the conclusion of the proceedings before thes e courts
may be rejected by way of a general order. S ection 367(2b), second to sixth sentences, shall
apply accordingly.
Section 173
Cancelling or amending tax assessment notices as a result of new facts or evidence
(1) Tax assessment notices shall be canc elled or amended
1. where facts or evidence which lead to a higher tax are subsequently
ascertained,
2. where facts or evidence which lead to a lower tax are subsequently ascertained
and the fact that these facts or evidence are only ascertained subsequent ly is not due to
grave negligence on the part of the taxpayer. Negligence shall be inconsequential where
the facts or evidence have a direct or indirect conn ection to the facts or evidence within
the meaning of number 1 above.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 72 of 140
(2) Notwithstanding the provi sions of subs ection (1) above, tax assessment notices, to the
extent that they have been issued on the basis of an external audit, may be cancelled or
amended only where taxes have been evaded or understated through gross negligence.
This shall also apply where notification pursuant to s ection 202(1), third sentence, has been
issued.
Section 174
Conflicting tax assessments
(1) Where a particular circumstance has been taken into account to the benefit of one or
more taxpayers in several tax assessment notice s although it should only have been taken
into account once, the incorrect tax assessment notice shall be cancelled or amended upon
application. W here the period for assessment for this tax assessment has already expired,
the application may still be made for up to a year after the last of the tax assessments in
question has become incontestable. Where the application is made on time, there shall be
no deadline imposed for the cancellation or amendment of the tax assessment notice.
(2) Subs ection (1) above shall apply mutatis mutandis where a particular circumstance has
been taken into account more than once to the benefit of one or more taxpayers in an
incompatible manner; an application shall not be required. However, it shall be possible to
correct the in correct tax assessment notice only where the circumstance was taken into
account on the basis of an application or declaration by the taxpayer.
(3) Where it is obvious that a particular circumstance has not been taken into account in a
tax assessment notic e because it was assumed that it is to be taken into account in another
tax assessment notice and where this assumption transpires to be incorrect, the tax
assessment which did not take the circumstance into account may be subsequently carried
out, cancell ed or amended. The subsequent carrying out, cancellation or amendment shall
be permissible only until the period for assessment which applies to the other tax
assessment expires.
(4) Where as a result of incorrect appraisal of a particular circumstance a t ax assessment
notice has been issued which, as the result of an appeal or otherwise upon application by
the taxpayer, is cancelled or amended by the revenue authority to his benefit, the proper
taxation implications of the circumstance may subsequently be effected by issuing or
amending a tax assessment notice. This shall also apply where the tax assessment notice is
cancelled or amended by the court. The expiration of the period for assessment shall be
inconsequential where the taxation implications are ef fected within one year following
cancellation or amendment of the incorrect tax assessment notice. This shall apply solely
under the conditions outlined in subs ection (3), first sentence, above where the period for
assessment had already expired when the t ax assessment notice which has been
subsequently cancelled or amended was issued.
(5) Subs ection (4) above shall apply with respect to third parties where they were involved in
the proceedings which led to the incorrect tax assessment notice being cancelle d or
amended. Their enlistment in or summons to these proceedings shall be permissible.
Section 175
Cancelling or amending tax assessment notice in special cases
(1) A tax assessment notice shall be issued, cancelled or amended
1. to the extent that a basi c assessment notice (s ection 171(10)) which has a
binding effect on this tax assessment notice is issued, cancelled or amended,
2. to the extent that an event which entails tax implications on periods already
elapsed occurs (event with retroactive effect).
In the cases mentioned in the first sentence, number 2, above the period for assessment
shall begin upon expiration of the calendar year in which the event occurs.
(2) The cessation of a precondition bestowing a tax privilege shall also be deemed to be an
event with retroactive effect where it is legally determined that this precondition must be met

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 73 of 140
for a certain amount of time or where an administrative act has determined that it forms the
basis for granting the tax privilege. The subsequent issue or subm ission of a certification or
confirmation shall not be deemed to be an event with retroactive effect.
Section 175a
The implementation of mutual agreement understandings
A tax assessment notice shall be issued, cancelled or amended where this is required in
order to implement a mutual agreement understanding or an arbitral award pursuant to an
agreement within the meaning of s ection 2. The period for assessment shall not end before
expiration of one year after the mutual agreement understanding or arbitral a ward has come
into effect.
Section 176
Prot ection of confidence in cancelling and amending tax notices of assessment
(1) Where a tax assessment notice is cancelled or amended, the following may not be taken
into account if it is to the taxpayer’s disadvant age:
1. the Federal Constitutional Court determines the invalidity of a law upon which
the tax assessment was based,
2. a highest federal court does not apply a provision, upon which the tax
assessment was based, because is holds it to be unconstitutional,
3. a ruling of a highest federal court, which was applied by the revenue authority in
the tax assessment, has changed.
Where the court rulings up to that point had already been taken into account in a tax return
or self -assessed tax return without this ha ving been recognisable by the revenue authority,
number 3 above shall apply only where it can be assumed that the revenue authority would
have applied the standing case law had they been aware of the circumstances.
(2) Where a tax assessment notice is canc elled or amended, it may not be taken into
account if it is to the taxpayer’s disadvantage that a general administrative provision of the
Federal Government, a highest federal authority or a highest authority of a Land has been
classified by a highest fede ral court as being incompatible with current law.
Section 177
Corr ection of material errors
(1) Where the conditions for cancelling or amending a tax assessment notice to the
taxpayer’s disadvantage exist, those material errors which are not the cause of t he
cancellation or amendment shall be corrected to the taxpayer’s advantage or disadvantage
insofar as the amendment is sufficient.
(2) Where the conditions for cancelling or amending a tax assessment notice to the
taxpayer’s advantage exist, those materia l errors which are not the cause of the cancellation
or amendment shall be corrected to taxpayer’s advantage or disadvantage insofar as the
amendment is sufficient.
(3) Material errors within the meaning of subs ections (1) and (2) above shall be all errors ,
including obvious errors within the meaning of s ection 129, which lead to the assessment of
a tax which deviates from the tax which arose by application of law.
(4) S ection 164(2), s ection 165(2) and s ection 176 shall remain unaffected.
IV. Costs
Section 178
Costs of making special use of the customs authorities
(1) The authorities of the federal customs administration and the authorities to whom
execution of the tasks of the federal customs administration has been transferred may
charge fees and demand t hat expenses are refunded in the case of a special use or service
(official act for which fee must be paid).

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 74 of 140
(2) A special use or service within the meaning of subs ection (1) above shall mean, in
particular,
1. official acts carried out outside of the plac e of work and outside of office hours,
to the extent that these are not fiscal supervision measures,
2. official acts which make the execution of duties more difficult because,
according to the application, they are to be carried out at a specific time,
3. the insp ection of goods where
a) this is the result of an application to have binding tariff information issued, or
a tax rebate or other privileges granted, or
b) in the course of official inspections, details or obj ections of the person with
power of di sposal turn out to be incorrect or unfounded, or
c) the inspected goods do not meet the required standards,
4. monitoring measures in businesses and with regard to transactions, where such
measures are in response to contraventions of the ordinances issued to secure the tax
revenue,
5. official monitoring and accompaniment of means of transportation or goods,
6. the safekeeping of non -Community goods,
7. written work (drafting correspondence, transcripts and copies) carried out upon
application,
8. the dest ruction of goods carried out in an official capacity or upon application.
(3) The Federal Ministry of Finance shall be entitled to set out more precisely by way of
ordinance not requiring the approval of the Bundesrat the official acts for which a fee can be
charged, to measure and set a flat rate for the costs to be charged on the basis of the
average administrative effort they require and to define conditions under which all or some of
these costs may not be levied because they are negligible, they will c ause undue hardship or
for other similar reasons.
(4) The provisions which apply to excise duties shall be applied accordingly to the
assessment of the costs. S ections 18 to 22 of the Administrative Costs Act shall not apply to
these costs.
Section 178a
Co sts of making special use of the revenue authorities
(1) The Federal Central Tax Office shall charge fees for processing applications for the
implementation of a procedure of mutual understanding pursuant to an agreement within the
meaning of s ection 2 wi th a view to the consensual taxation of as yet unrealised transactions
of the taxpayer with related persons within the meaning of s ection 1 of the Foreign Tax Act
or with a view to the future consensual distribution of profits between a domestic enterprise
and its foreign permanent establishment or with a view to the future consensual
determination of profits of a domestic permanent establishment of a foreign enterprise
(advance pricing agreement procedure), which fees shall be determined by the Federal
Cen tral Tax Office before the advance pricing agreement procedure is opened. This
procedure shall be opened by the first written correspondence sent to the other country.
Where an application has as its goal an advance pricing agreement procedure with several
states, a fee shall be determined and charged for each procedure. The advanced pricing
agreement procedure shall not be opened before the assessment of fees has become
incontestable and the fee has been paid; where an application for a lower fee pursuant to

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 75 of 140
subs ection (4) below has been made, the decision relating to this must also first be
incontestable.
(2) The fee shall be 20,000 euros (basic fee) for each application within the meaning of
subs ection (1) above; an application of a parent company within the meaning of
section 14(1) of the Corporation Tax Act which includes the corresponding transactions of its
controlled companies shall be deemed to be one application. W here a person who has
already entered a mutual agreement understanding applies for an extension to the period of
validity, the fee shall be 15,000 euros (extension fee). Where the applicant amends his
application before a decision has been taken on the original application or where he applies
for an amendment to the mutual agreement underst anding while it is ongoing, an additional
fee of 10,000 euros shall be levied for each amendment (amendment fee); this shall not
apply where the amendment has been ordered by the Federal Central Tax Office or by the
other state.
(3) Where the total value o f the transactions covered by the advance pricing agreement
procedure are not likely to exceed the amounts given in s ection 6(2), first sentence, of the
Ordinance of 13 November 2003 on Recording Profit Allocations (Federal Law Gazette I, p.
2296), the bas ic fee shall be 10,000 euros, the extension fee 7,500 euros and the
amendment fee 5,000 euros.
(4) The Federal Central Tax Office may reduce the fees under subs ection (2) or (3) above
upon application where their payment means unreasonable hardship for the taxpayer and
the Federal Central Tax Office determines that the revenue authorities have a particular
interest in the implementation of the advance pricing agreement procedure. The application
shall be submitted before the advance pricing agreement proced ure is opened; any
application submitted at a later stage shall not be permissible.
(5) Where the application is withdrawn or rejected, or where the advance pricing agreement
procedure fails, the incontestable fee set shall not be refunded.
2nd Subchapter
Separate determination of the bases of taxation, assessment of basic impersonal tax
amounts
I. Separate determination
Section 179
Determination of bases of taxation
(1) Notwithstanding the provisions of s ection 157(2), the bases of taxation shall be
determ ined separately by way of notice of determination where this is provided for in this
Code or otherwise in the tax laws.
(2) A notice of determination shall be issued against the taxpayer to whom the object of the
determination is attributable for taxation. Separate determination shall be undertaken
uniformly against several participants where this is required by statute or where the object of
the determination is attributable to several persons. Where one of these persons participates
in the object of the d etermination solely via another person, a special separate determination
may be undertaken.
(3) Where a determination which should have been made does not appear in a notice of
determination, it shall be included in an additional notice.
Section 180
Separa te determination of bases of taxation
(1) The following, in particular, shall be determined separately:
1. the assessed values in accordance with the Valuation Act,
2.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 76 of 140
a) income which is subject to income tax and corporation tax, and other related
bases of taxation where several persons have a share in the income and the
income is attributable for tax purposes to these persons,
b) in cases other than those mentioned in a) above, income from agriculture
and forestry, from a commercial operation, or from prof essional services, where,
given the situation at the end of the period for determining profit, the tax office
responsible for separate determination is not also responsible for taxes on
income,
3. the value of economic goods subject to capital tax (s ection s 114 to 117a of the
Valuation Act) and the value of debts and other deductions (s ection 118 of the Valuation
Act), where the economic goods, debts and other deductions are attributable to several
persons and such determination is relevant for taxation.
(2) In order to ensure that the law is applied uniformly to similar situations, and in order to
simplify the taxation procedure, the Federal Ministry of Finance may determine, via
ordinance and with the consent of the Bundesrat, that bases of taxation may be determined
separately and, for several persons, uniformly in cases other than those mentioned in
subs ection (1) above. This may set out, in particular, the following:
1. the object and scope of the separate determination,
2. the conditions necessary for t he determination procedure,
3. the local jurisdiction of the revenue authorities,
4. the participants in the determination procedure (procedure participants) and the
scope of their obligations and rights for taxation purposes, including the representation of
participants by other participants,
5. the disclosure of administrative acts to procedure participants and persons
authorised to take receipt of such,
6. the permissibility, scope and implementation of external audits to calculate the
bases of taxation.
The Federal Ministry of Finance may, via ordinance and with the consent of the Bundesrat,
order that bases of taxation which only have an effect at a later stage are determined
separately and, for several persons, uniformly in order to ensure correct taxa tion at a later
date; the second sentence above shall apply accordingly. The ordinances shall not require
the agreement of the Bundesrat where they concern import/export duties and excise duties,
with the exception of beer duty.
(3) Subs ection (1) number 2 (a) above shall not apply where
1. only one of the persons with a share in the income is subject to income tax or
corporation tax within the territory of application of this Code, or
2. the case is one of negligible importance, especially because the exten t of the
amount determined and its allocation have been established. This shall also apply
mutatis mutandis to the cases under subs ection (1) numbers 2(b) and 3 above.
The tax office responsible pursuant to s ection 18(1) number 4 may determine by way of
no tice that a separate determination shall not be undertaken. The notice shall count as a tax
assessment notice.
(4) Subs ection (1) number 2(a) above shall further not apply for work cooperatives whose
sole purpose is to fulfil a single contract for work or contract for performance of work.
(5) Subs ection (1) number 2, subs ection (2) and subs ection (3) above shall be applied
accordingly where

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 77 of 140
1. the income excluded from the tax base pursuant to an agreement for the
avoidance of double taxation is relevant in assessing the tax of the participants, or
2. tax -deductible amounts and corporation tax are to be credited against the
assessed tax.
Section 181
Procedural rules for separate determination, determination period, obligation to
submit return
(1) The provisio ns on executing the taxation procedure shall apply mutatis mutandis to
separate determination. The declaration for separate determination shall be a tax return
within the meaning of s ection 179(2) number 1. Where a declaration for separate
determination pu rsuant to s ection 180(2) is submitted without a corresponding request by the
revenue authority to do so, s ection 170(3) shall apply mutatis mutandis.
(2) Anyone to whom the object of the determination is wholly or partially attributable shall be
obliged to submit a declaration for separate determination. The following, in particular, shall
be obliged to submit a declaration:
1. in the cases referred to in s ection 180(1) number 2(a), every participant in the
determination to whom a share in the income subjec t to income tax or corporation tax is
attributable,
2. in the cases referred to in s ection 180(1) number 2(b), the trader,
3. in the cases referred to in s ection 180(1) number 3, every participant in the
determination to whom a share in the economic goods, debts or other deductions is
attributable,
4. in the cases referred to in s ection 180(1) numbers 2(a) and 3, the persons
described in s ection 34.
Where a person obliged to submit a declaration for separate determination has already done
so, other particip ants shall be exempt from the obligation to submit a declaration.
(2a) The declaration for separate determination pursuant to s ection 180(1) number 2 shall be
transmitted using an officially prescribed data set via remote data transmission. Upon
applicatio n the revenue authority may, to avoid undue hardship, waive electronic
transmission; in this case, the declaration for separate determination shall be submitted on
an officially prescribed form and personally signed by the person obliged to submit a
declar ation.
(3) The period within which the separate determination of assessed values is to be
undertaken (determination period) shall begin upon expiration of the calendar year at whose
beginning the main determination, the updating, the subsequent determinati on or the
cancellation of an assessed value is to be carried out. Where a declaration for the separate
determination of the assessed value is to be submitted, the determination period shall begin
upon expiration of the calendar year in which the declaratio n is submitted, but no later than
upon expiration of the third calendar year following the calendar year at the beginning of
which the determination of the assessed value is to be carried out or cancelled. Where the
beginning of the determination period pu rsuant to the second sentence above is postponed,
the beginning of the determination period shall be postponed by the same amount of time for
the other determination dates of the main determination period.
(4) In the cases mentioned in subs ection (3) above , the determination period shall not begin
before expiration of the calendar year at the beginning of which the assessed value is to be
applied for tax purposes for the first time.
(5) Separate determination may also be undertaken following the expiration of the
determination period to which it applies in as much as the separate determination is of
relevance for a tax assessment for which the period of assessment has not yet expired at the
time the separate determination is made; s ection 171(10) shall not b e taken into account.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 78 of 140
Reference shall be made to such in the notice of determination. S ection 169(1), third
sentence, shall apply mutatis mutandis.
Section 182
Effects of separate determination
(1) Notices of determination, even when they are not yet incon testable, shall be binding for
other notices of determination, for basic impersonal tax amount notices, for tax assessment
notices and for self -assessed tax returns (follow -up notices) to the extent that the
determinations made in the notices of determinat ion are of importance for these follow -up
notices. In the case of determinations pursuant to s ection 180(5) number 2, the first
sentence shall apply accordingly to administrative acts which concern the realisation of
claims arising from the tax debtor -cred itor relationship; where a notice of determination
pursuant to s ection 180(5) number 2 is issued, cancelled or amended, any administrative act
for which this notice of determination has a binding effect shall be corrected in corresponding
application of s ection 175(1), first sentence, number 1.
(2) A notice of determination on an assessed value (s ection 180(1) number 1) shall also
have effect for legal successors to whom after the determination has been carried out the
object of the determination is transfe rred, with corresponding tax implications. However,
where legal succession takes place before the notice of determination has been issued, the
notice shall have effect for the legal successor only where it is disclosed to him. The first and
second sentence s above shall apply accordingly to separate and separate and uniform
determinations of the bases of taxation which only have an effect at a later date pursuant to
the Ordinance of 19 December 1986 on the separate determination of bases of taxation
pursuant to s ection 180(2) of the Fiscal Code (Federal Law Gazette I, p. 2663).
(3) Where a separate determination is carried out uniformly against several participants
(section 179(2), second sentence) and where the inclusion in the notice of determination of
one of the participants is incorrect as legal succession has already occurred, this may be
corrected by way of special notice against the legal successor.
Section 183
Authorised recipients in the case of uniform determination
(1) Where a notice of determinati on is directed against several persons who are involved in
the object of the determination as partners or co -owners of a community (participant in the
determination), these should appoint a common recipient authorised to take receipt of all
administrative acts and notifications connected with the determination procedure and any
subsequent obj ection proceedings. In the absence of a common authorised recipient, a
person entitled to represent the partnership or participants in the determination or to manage
the object of the determination shall be the authorised recipient. Where this is not the case,
the revenue authority may demand that participants appoint an authorised recipient within a
certain reasonable period. To this end, a participant shall be proposed and reference shall
be made to the fact that he will be notified of the administrative acts and notifications named
in the first sentence above with effect for and against all participants, to the extent that no
other authorised recipient is appointed. In notifying the authorised recipient, reference shall
be made to the fact that notification is done with effect for and against all participants in the
determination.
(2) Subs ection (1) above shall not be applied where the revenue authority is aware that th e
partnership or community no longer exists, that a participant is no longer part of the
partnership or community, or that serious differences of opinion exist between the
participants. Where pursuant to the first sentence above individual notification is necessary,
the participant shall be informed of the object of the determination, the bases of taxation
concerning all participants, his share, the number of participants and the bases of taxation
concerning him personally. Where he has a legitimate interes t, the participant shall be
informed of the entire contents of the notice of determination.
(3) Where an authorised recipient pursuant to subs ection (1), first sentence, above exists,
notices of determination may be made known to him even with effect for a participant named

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 79 of 140
in subs ection (2), first sentence, above to the extent that and provided that this participant or
the authorised recipient has not objected. Any revocation of the authorisation shall take
effect in relation to the revenue authority only once the revenue authority has received it.
(4) Where an economic entity is attributed to a married couple or a married couple and their
children or single parents and their children and where the participants have not appointed a
common authorised recipie nt, the provisions of s ection 122(7) on consolidated notices shall
apply accordingly with regard to the disclosure of notices of determination on the assessed
value.
II. The assessment of basic impersonal tax amounts
Section 184
The assessment of basic imp ersonal tax amounts
(1) Basic impersonal tax amounts which are to be calculated pursuant to the tax laws shall
be assessed by way of basic impersonal tax assessment notice. The assessment of basic
impersonal tax amounts shall also constitute a decision on the personal and material tax
liability. The provisions on executing the taxation procedure shall be applied mutatis
mutandis. In addition, s ection 182(1) and, for basic real property tax assessment notices,
section 182(2) and s ection 183 shall be applied mutatis mutandis.
(2) The power to assess basic impersonal tax amounts shall also include the power to
execute measures pursuant to s ection 163, first sentence, to the extent that instructions for
such measures have been set out in a general administrative provision of the Federal
Government or of a highest revenue authority of a Land. To the extent that a measure
pursuant to s ection 163, second sentence, influences the commercial revenue as a basis for
assessing the tax on income, it shall also have effect on the trade income as a basis for
assessing the basic trade tax amount.
(3) The revenue authorities shall notify the content of the basic impersonal tax assessment
notice and the measures taken pursuant to subs ection (2) above to the municipalities
charg ed with assessing the tax (issuing the impersonal tax assessment notice).
3rd Subchapter
Apportionment and allocation
Section 185
Validity of the general provisions
The provisions which apply to the basic impersonal tax amounts shall be applied accordingly
to the apportionment of basic impersonal tax amounts as provided for in the tax laws unless
otherwise stipulated in the following.
Section 186
Participants
The following shall participate in the apportionment procedure:
1. the taxpayer,
2. the taxing enti ties to which a share of the basic impersonal tax amount has
been allocated or which claim a share. Where the taxing entity is not obliged to assess
the tax, the authority responsible for assessing the tax shall take its place.
Section 187
Insp ection of fi les
The participating taxing entities may demand from the competent revenue authority
information regarding the basis of apportionment and may have its public officials inspect the
records relating to the apportionment.
Section 188
Notice of apportionment

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 80 of 140
(1) A notice on the apportionment (apportionment notice) shall be issued in writing and made
known to the participants where it affects them.
(2) The apportionment notice shall state the extent of the basic impersonal tax amount to be
apportioned and shall determine the shares to be allocated to the participating taxing
entities. Furthermore, it shall provide details of the basis of apportionment.
Section 189
Amendment to the apportionment
Where a taxing entity’s claim to a share of the basic impersonal tax amount has not been
taken into account and has not been rejected, the apportionment shall be amended or
subsequently undertaken ex officio or upon application. Where the existing apportionment
notice relating to taxing entities that have already participa ted in the apportionment
procedure has become incontestable, only those amendments which result from the
subsequent inclusion of the taxing entities that have hitherto been overlooked may be
undertaken when amending the apportionment. The apportionment sha ll not be amended or
subsequently undertaken where one year has passed since the basic impersonal tax
assessment notice became incontestable unless the taxing entity overlooked had applied
before the year has expired for the amendment to be subsequently un dertaken or amended.
Section 190
Allocation procedure
Where the full extent of a basic impersonal tax amount is to be allocated to one taxing entity
but there is disagreement as to which taxing entity is entitled to the basic impersonal tax
amount, the rev enue authority shall reach a decision by way of allocation notice upon
application by a participant. The provisions which apply to the apportionment procedure shall
be applied accordingly.
4th Subchapter
Liability
Section 191
Notices of liability, notices of compulsory tolerance
(1) A claim may be made by way of notice of liability against a person who is legally liable for
a tax (liable person) or by way of notice of compulsory tolerance against whoever is legally
obliged to tolerate enforcement. Contestat ions relating to claims from the tax debtor -creditor
relationship which are not part of insolvency proceedings shall be made by way of notice of
compulsory tolerance provided that they are not to be made by way of plea as provided for in
section 9 of the A ct on Contesting Transactions of a Debtor Not Included in Insolvency
Proceedings; in calculating deadlines pursuant to s ections 3 and 4 of said Act, the issue of a
notice of compulsory tolerance shall be deemed equal to a judicial act allowing contestabili ty
pursuant to s ection 7(1) of the Act. The notices shall be issued in writing.
(2) Before a notice of liability is issued against a lawyer, a patent agent, a notary, a tax
consultant, a tax representative, an auditor or a certified accountant on account o f an action
within the meaning of s ection 69 carried out in the exercise of his profession, the revenue
authority shall allow the responsible professional organisation the opportunity to present
aspects which from its perspective are of relevance to the de cision.
(3) The provisions on the period for assessment shall be applied accordingly to the issue of
notices of liability. The period for assessment shall be four years in the cases referred to in
section 70, ten years regarding tax evasion, five years reg arding tax understatement through
gross negligence, and in the cases referred to in s ection 71, 10 years. The period for
assessment shall begin upon expiration of the calendar year in which the matter to which the
law attaches the consequence of liability arose. Where the tax for which liability is borne has
not yet been assessed, the period for assessment for the notice of liability shall not end
before expiration of the period for assessment which applies to the assessment of taxes;
where this is not the case, s ection 171(10) shall apply mutatis mutandis. In the cases

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 81 of 140
referred to in s ections 73 and 74, the period for assessment shall not end before the period
of limitations for tax assessed against the tax debtor has become time -barred (s ection 228).
(4) W here the tax laws do not provide for the liability, a notice of liability may be issued as
long as the liability claims are not yet time -barred pursuant to the laws relevant to them.
(5) A notice of liability may no longer be issued
1. insofar as the tax h as not been assessed against the tax debtor and, because
the period for assessment has expired, can no longer be assessed,
2. insofar as the tax assessed against the tax debtor is time -barred or the tax debt
has been remitted.
This shall not apply where th e liability is based on the fact that the person owing the liability
has committed tax evasion or has received, held or sold property obtained by tax evasion.
Section 192
Contractual liability
Whoever promises on the basis of a contract to assume responsib ility for the tax of another
may be required to do so only in accordance with the provisions of civil law.
Fourth Chapter
External audit
1st Subchapter
General provisions
Section 193
Permissibility of an external audit
(1) An external audit shall be permis sible with respect to taxpayers who maintain a
commercial operation or agricultural and forestry undertaking or who provide professional
services, and with respect to taxpayers within the meaning of s ection 147a.
(2) With respect to taxpayers other than th ose described in subs ection (1) above, an external
audit shall be permissible
1. to the extent that it concerns the obligation of this taxpayer for account of
another to pay taxes or to withhold or give to revenue authorities taxes which are due,
2. where there is a need to clarify the circumstances relevant for taxation and, due
to the nature and scope of the circumstances to be examined, it is impractical to conduct
an examination at the offices of the competent authority, or
3. where a taxpayer fails to comply with his obligation to cooperate under
section 90(2), third sentence.
Section 194
Scope of an external audit
(1) The external audit shall serve to identify the taxpayer’s circumstances for tax purposes. It
may cover one or more types of tax, one or more taxation periods or be limited to certain
aspects. The external audit of an unincorporated company shall cover the partners’
circumstances for tax purposes to the extent that these are of importance with respect to the
uniform determinations to be exa mined. The tax circumstances of other persons may also be
examined to the extent that the taxpayer was or is obliged for account of these persons to
pay taxes or withhold and give to revenue authorities taxes which are due; this shall also
apply where any tax deficiencies are to be enforced against the other persons.
(2) The tax circumstances of partners and members as well as of members of supervisory
bodies may, in addition to the cases governed by subs ection (1) above, be included in the
external audit t o be conducted at a partnership where this serves the purpose of the audit in
individual cases.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 82 of 140
(3) Where due to an external audit circumstances of persons other than those named in
subs ection (1) above are determined, the evaluation of these findings shal l be permissible to
the extent that knowledge of such is of relevance for the taxation of these other persons or
the findings concern an impermissible provision of assistance in tax matters.
Section 195
Jurisdiction
External audits shall be conducted by th e revenue authorities responsible for the taxation.
These may charge other revenue authorities with the external audit. The appointed revenue
authority may undertake the tax assessment and issue binding commitments (s ections 204
to 207) in the name of the competent revenue authority.
Section 196
Audit order
The revenue authority shall determine the scope of the external audit in an audit order to be
issued in written form with advice on applicable legal remedies (s ection 356).
Section 197
Disclosure of the audit order
(1) The audit order as well as the likely starting date of the audit and the names of the
auditors shall be disclosed to the taxpayer in relation to whom the external audit is to be
conducted a reasonable amount of time before the audit begins where this does not
endanger the purpose of the audit. The taxpayer may elect not to have the deadline
enforced. W here pursuant to s ection 194(2) the audit is to cover the tax circumstances of
partners and members as well as members of supervisory bodies, the audit order shall also
be disclosed to these persons.
(2) Upon application by the taxpayer, the starting date of the external audit shall be
postponed to another date where important reasons for this can be established credibly.
Section 198
Identificat ion duty, start of external audit
The auditors shall identify themselves without undue delay upon arrival at the premises. The
date and time of the commencement of the external audit shall be recorded.
Section 199
Audit principles
(1) The external auditor shall examine the actual and legal circumstances which are decisive
for the tax obligation and for measuring the tax (bases of taxation), regardless of whether
these are to the taxpayer’s advantage or disadvantage.
(2) The taxpayer shall be informed during the external audit of the facts determined and the
possible tax implications where this does not impede the purpose and course of the audit.
Section 200
Obligations of the taxpayer to cooperate
(1) The taxpayer shall be obliged to cooperate in determining the circumstances that may be
relevant for taxation. In particular, he shall provide information, submit for perusal and
examination records, accounts, business documents and other deeds, provide the
explanations needed to understand the records and suppo rt the revenue authority in
executing its powers pursuant to s ection 147(6). Where the taxpayer or persons appointed
by him are not able to give information, or where the information is not sufficient to clarify the
situation or where information provided by the taxpayer is not likely to lead to results, the
external auditor may request information from other persons belonging to the business.
Section 93(2), second sentence, and s ection 97(2) shall not apply.
(2) The taxpayer shall submit the documents name d in subs ection (1) above on his business
premises or, where there is no office suitable for conducting the external audit available, on
his living premises or at the offices of the competent authority. A room or workstation

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 83 of 140
suitable for conducting the aud it as well as the necessary aids shall be provided free of
charge.
(3) The external audit shall be conducted during normal business or working hours. The
auditors shall be entitled to enter and inspect sites and business premises. The owner of the
business or his representative should be enlisted in the insp ection of the premises.
Section 201
Final meeting
(1) A meeting shall be held on the results of the external audit (final meeting) unless the
external audit leads to no changes to the bases of taxation o r the taxpayer elects to forgo
such a meeting. During the final meeting, disputed issues in particular as well as a legal
assessment of the audit findings and their tax implications shall be discussed.
(2) Where the possibility exists that, on the basis of the audit findings, criminal or
administrative fine proceedings are to be conducted, the taxpayer should be advised that a
separate procedure will be conducted to assess the possibility of criminal or administrative
fine proceedings.
Section 202
Content a nd disclosure of audit report
(1) A written report (audit report) shall be drawn up showing the result of the external audit.
The audit report shall present in actual and legal terms the audit findings which are
significant for taxation as well as the chan ges to the bases for taxation. Where the external
audit does not lead to any changes to the bases for taxation, it shall be sufficient to disclose
this to the taxpayer in writing.
(2) The revenue authority shall, upon application, supply the taxpayer with a copy of the
audit report before it is evaluated and allow him opportunity to comment on it within a
reasonable period of time.
Section 203
Shortened external audit
(1) The revenue authority may conduct a shortened external audit of taxpayers in respect o f
whom it regards an external audit in frequent intervals unnecessary in the particular
circumstances. The audit shall be restricted to the essential bases of taxation.
(2) The taxpayer shall be informed before the audit is concluded of the extent of any l ikely
deviations from the tax returns or tax assessments. The main audit findings of relevance for
tax purposes shall be presented in writing to the taxpayer at the latest with the tax
assessment notices. S ections 201(1) and 202(2) shall not apply.
2nd Sub chapter
Binding commitments on the basis of an external audit
Section 204
Preconditions for a binding commitment
Once an external audit has been concluded, the revenue authority should, upon application,
make a binding commitment to the taxpayer as to how circumstances which were audited for
the past and which are contained in the audit report shall be treated for tax purposes in
future where knowledge of such future tax treatment is important for the business activity of
the taxpayer.
Section 205
Format o f a binding commitment
(1) The binding commitment shall be issued in writing and shall be indicated as binding.
(2) The binding commitment shall contain:
1. the underlying circumstances for the binding commitment; in this regard,
reference may be made to t he circumstances described in the audit report,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 84 of 140
2. the decision on the application and the main reasons for this,
3. information as to the taxes and period to which the binding commitment applies.
Section 206
Binding effect
(1) The binding commitment shall be binding in terms of taxation where circumstances which
match those underlying the binding commitment arise at a later date.
(2) Subs ection (1) above shall not apply where, to the applicant’s disadvantage, the binding
commitment contravenes existing law .
Section 207
Expiry, cancellation and amendment of the binding commitment
(1) The binding commitment shall expire when the legal provisions on which the decision is
based are changed.
(2) The revenue authority may cancel or amend the binding commitment wi th ex nunc effect.
(3) The retroactive cancellation or amendment of a binding commitment shall only be
permissible where the taxpayer agrees or where the conditions set out in s ection 130(2)
numbers 1 or 2 are met.
Fifth Chapter
Tax investigation (customs investigation)
Section 208
Tax investigation (customs investigation)
(1) The tax investigation (customs investigation) authorities shall be charged with
1. investigating tax crimes and tax offences,
2. determining the bases of taxation in the cases named in number 1 above,
3. uncovering and investigating unknown tax cases.
The offices of the revenue authorities of a Land charged with tax investigations and the
customs investigation offices shall have, in addition to the powers granted under s ection 404,
se cond sentence, first half -sentence, the powers of investigation at the disposal of the tax
offices (main customs offices). In the cases of numbers 2 and 3 above, the restrictions set
out in s ection 93(1), third sentence, s ection 93(2), second sentence, s ec tion 97(2) and
section 97(3) shall not apply; s ection 200(1), first and second sentences, s ection 200(2) and
section 200(3), first and second sentences, shall apply mutatis mutandis, s ection 393(1)
shall remain unaffected.
(2) Notwithstanding subs ection (1) above, the offices of the revenue authorities of a Land
charged with tax investigations and the customs investigations offices shall be responsible
for
1. tax investigations, including external audits upon request by the competent
revenue authority,
2. the other tasks entrusted to them within the scope of the jurisdiction of the
revenue authorities.
(3) The tasks and powers of the tax offices (main customs offices) shall remain unaffected.
Sixth Chapter
Fiscal supervision in special cases
Section 209
Obje ct of fiscal supervision
(1) The movement of goods over the border and in the free zones and free warehouses as
well as the production and manufacture, storage, transport and commercial use of goods

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 85 of 140
subject to excise duty and the trade of goods subject to excise duty shall be subject to
customs supervision (fiscal supervision).
(2) Also subject to fiscal supervision shall be:
1. the shipping, export, storage, use, destruction, refinement, conversion and other
processing or treatment of goods in an excise du ty procedure,
2. the manufacture and export of goods, for which a remission, refund or rebate of
excise duty is claimed.
(3) Other activities shall be subject to fiscal supervision where this is required by law.
Section 210
Powers of the revenue authoritie s
(1) The public officials charged by the revenue authority with fiscal supervision shall be
entitled to enter during office and working hours property and premises of persons who
exercise an independent commercial or professional activity, and to whom a matter subject
to fiscal supervision is attributable, for the purpose of carrying out insp ections or of reaching
findings which could have a significant bearing on taxation (search).
(2) Furthermore, property and premises of persons to whom a matter subjec t to fiscal
supervision is attributable shall be subject to search, without restriction as to time, where
there is good reason based on facts to assume that smuggled goods or goods subject to
excise duties but not properly taxed are located there or that p rovisions and orders, the
observance of which is to be ensured by fiscal supervision, are being breached there. In
cases of imminent danger the searching of living and business premises shall be permissible
even without a court order.
(3) The public offici als charged by the revenue authority with fiscal supervision shall be
further entitled within the context of controls restricted by time and place to stop ships and
other vehicles which seem to serve commercial purposes based on their outward
appearance. T he persons affected shall be obliged to provide proof of their identity and
details of the goods being carried; they shall be obliged in particular to show consignment
notes and other transport documents, including those of a non -tax nature. Where this or
other facts give rise to the belief that goods subject to excise duties are being carried, the
public officials may examine these goods and reach findings which may have a bearing on
the taxation of these goods. The persons affected shall be obliged to pro vide details of the
origin of the goods subject to excise duty, to tolerate the fact that samples may be taken
without compensation and to provide the necessary assistance.
(4) An external audit pursuant to s ection 193 may be initiated without the need for a prior
order (s ection 196) where reason to do so arises as a result of findings made when
exercising fiscal supervision. The transition to an external audit shall be indicated in writing.
(5) Where it becomes necessary to carry out a search on the premis es of the Federal Armed
Forces or an institution or facility of the Federal Armed Forces not open to the public, a
request shall be submitted to the commanding office of the Federal Armed Forces to carry it
out. The revenue authority shall be entitled to p articipate. A request shall not be necessary
where the search is to be carried out in quarters exclusively inhabited by persons other than
soldiers.
Section 211
Obligations of the persons affected
(1) Whoever is affected by fiscal supervision measures shal l be obliged to provide the public
officials on demand with records, accounts, business documents and other deeds relating to
the matter subject to fiscal supervision and to the procurement and sale of goods subject to
excise duty, with information and wit h the assistance otherwise needed to exercise fiscal
supervision. S ection 200(2), second sentence, shall apply mutatis mutandis.
(2) The obligations pursuant to subs ection (1) above shall also apply where, within the
context of a legally prescribed ex post taxation of goods subject to excise duty, the persons

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 86 of 140
to whom and the extent to which goods subject to ex post taxation were delivered is to be
determined in a business or enterprise subject to the fiscal supervision.
(3) Measures which serve to prevent o r hamper the exercise of fiscal supervision shall be
impermissible.
Section 212
Implementation provisions
(1) The Federal Ministry of Finance may, by way of ordinance defining more precisely the
obligations to be fulfilled within the context of fiscal supe rvision, order that
1. certain actions may only be carried out on premises registered with the revenue
authority or whose use for such purpose has been specially approved by the revenue
authority,
2. premises, vehicles, equipment, vessels and conduits, whi ch serve or may serve
the manufacture, processing, refinement, storage, transport or measurement of taxable
goods are to be set up, arranged, labelled or officially sealed in a particular manner at the
cost of the owner of the business,
3. goods subject to monitoring are treated, labelled, stored, packaged, dispatched
or used in a particular manner,
4. the trade of taxable goods is specially monitored where the trader is also the
manufacturer of the goods,
5. records are to be kept in a particular manner an d the inventory is to be
determined for business processes and for taxable goods and for the input materials,
production materials, auxiliary materials and intermediary products used to manufacture
them,
6. accounts, records and other documents are to be s tored in a particular manner,
7. processes and measures in businesses and enterprises which are of relevance
for taxation are to be reported to the revenue authority,
8. gratuitous samples may be taken or gratuitous examples submitted of taxable
goods, of goods in relation to which the remission, refund or rebate of excise duties is
claimed, of material used in the manufacture these goods, and of their packaging.
(2) The ordinance shall not require the consent of the Bundesrat, except where it concerns
beer duty.
Section 213
Special supervisory measures
Businesses or enterprises whose owners or executives have been finally and incontestably
convicted of tax evasion, attempted tax evasion or participation in such an act may be
subjected at their own costs to special supervisory measure where this is needed to ensure
effective fiscal supervision. In particular, additional records and disclosure obligations,
measures to ensure that premises, containers and equipment are safely sealed and other
similar measures m ay be prescribed.
Section 214
Representatives
Whoever in order to meet taxation obligations arising from a matter subject to fiscal
supervision allows himself to be represented by a member of his business or enterprise
charged with meeting these obligation s shall require the consent of the revenue authority.
This shall not apply to representation in matters of import duties within the meaning of Article
4 number 10 of the Customs Code and s ection 1(1), third sentence, of the Customs

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 87 of 140
Administration Act in co njunction with the receipt of a customs -approved treatment or use of
a good within the meaning of Article 4 number 15 of the Customs Code.
Section 215
Seizure during supervision
(1) The revenue authority may secure by way of removal, placement under seal o r
prohibition on disposal
1. goods subject to excise duty which a public official finds
a) in manufacturing businesses or on other premises which should have been
registered with the revenue authority but were not,
b) in trade without the goods being packa ged, denoted or labelled in
accordance with the tax laws or without the prescribed tax marks,
2. goods which are found in proximity to the border or in regions subject to border
surveillance, where these are neither obviously Community goods nor appear to have
been released for free circulation,
3. the items and material used to enclose the goods named in numbers 1 and 2
above,
4. equipment which is designed to manufacture goods subject to excise duty and
which is located in a manufacturing business not reg istered with the revenue authority.
It shall also be permissible to secure the items where they were initially confiscated in the
course of criminal proceedings and then made available to the revenue authority.
(2) The act of securing the items shall be re corded in writing. The act of securing the items
shall be disclosed to the persons affected (owners, possessors) to the extent that these are
known.
Section 216
Transfer to federal ownership
(1) Items secured pursuant to s ection 215 shall be transferred to federal ownership provided
that they are not confiscated pursuant to s ection 375(2). This shall apply to found items only
to the extent that no ownership claims are enforced.
(2) The persons affected shall be informed of the transfer of secured items to f ederal
ownership. Where it is not known who the affected person is, s ection 10(2) of the Act on the
Administrative Service of Documents shall apply mutatis mutandis.
(3) The transfer of ownership shall take effect as soon as the administrative act issued b y the
revenue authority has become incontestable. Subject to the first sentence above, ownership
of items connected to the ground and land shall be deemed transferred once they have been
detached. Third -party rights relating to a secured item shall remain. However, the expiration
of these rights may be ordered where the third party has contributed, through gross
negligence, to the items transferred to federal ownership being secured or where he has
acquired his rights to the item in knowledge of the circums tances which led to the item being
secured.
(4) Secured items may be sold before they have been transferred to federal ownership
where there is a danger of decay or considerable loss in value or where their storage,
maintenance or preservation is accompani ed by disproportionately high costs or difficulties;
to this end, items which are attached to the ground or land may be detached from these. The
proceeds of sale shall take the place of the item. The emergency sale of these items shall be
conducted in acco rdance with the provisions of this Code on the realisation of attached
items. The persons concerned are to be heard before the sale is ordered. They shall be
informed of the order and the time and place of the sale where possible.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 88 of 140
(5) Secured items or item s already transferred to federal ownership shall be returned where
the circumstances which led to their securing are not attributable to the owner or where
transfer to federal ownership would seem to result in undue hardship for the persons
affected. Third parties acting in good faith whose rights have been cancelled or impeded by
the transfer to federal ownership shall be adequately compensated for such from the
proceeds of the realisation of the item. In other respects, compensation may be granted
where t he refusal of such would mean undue hardship.
Section 217
Tax aides
In order to determine facts which have a bearing on customs or excise duties, the revenue
authority may appoint as tax aides persons who themselves are not affected by the outcome
of such findings.
Fifth Part
Levy procedure
First Chapter
Realisation, maturity and expiration of claims arising from the tax debtor -creditor
relationship
1st Subchapter
Realisation and maturity of claims arising from the tax debtor -creditor relationship
Section 218
Realisation of claims from the tax debtor -creditor relationship
(1) The tax assessment notices, tax rebate notices, the notices of liability and the
administrative acts through which ancillary tax payments are assessed shall form the basis
for realisin g claims arising from the tax debtor -creditor relationship (s ection 37); where late –
payment penalties are concerned, mere fulfilment of the legal stipulations shall be enough
(section 240). Self -assessed tax returns (s ection 168) shall be deemed equivalent to the tax
assessment notices.
(2) The revenue authority shall decide by way of administrative act on disputes concerning
the realisation of claims within the meaning of subs ection (1) above. This shall also apply
where the dispute concerns a refund claim (section 37(2)).
Section 219
Requirement to pay in the case of notices of liability
Unless otherwise stipulated, a person owing a liability may only be required to pay where
enforcement against the tax debtor’s movable property was not successful or it ca n be
assumed that enforcement would not lead to the desired result. This restriction shall not
apply where the liability is based on the person owing the liability having committed tax
evasion or having received, held or sold goods obtained by tax evasion or being legally
obliged to withhold and give to revenue authorities taxes which are due or to pay them at the
expense of another.
Section 220
Maturity
(1) The due date for payment of claims arising from the tax debtor -creditor relationship shall
be based on the provisions of the tax laws.
(2) Where the due date is not governed by a particular legal provision, the claim shall be due
on the date on which it arises unless a deadline for payment has been granted in the case of
a demand for payment required pur suant to s ection 254. Where in the cases described in the
first sentence above the claim results from the assessment of claims arising from the tax
debtor -creditor relationship, the amount shall not fall due before the assessment has been
disclosed.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 89 of 140
Sectio n 221
Other maturity
Where a taxpayer has failed several times to pay an excise duty or VAT on time, the revenue
authority may demand payment of the tax by a date before the legal due date but after the
tax has arisen, to be determined by the revenue autho rity. The same shall apply where there
is good reason to assume that the receipt of an excise duty or the VAT is at risk; collateral
may also be demanded in lieu of bringing the due date forward. It shall be permissible to
bring the due date forward in the cases described in the first sentence above only where the
taxpayer has been informed of such in the event of his renewed failure to pay the tax on
time.
Section 222
Deferment
The revenue authorities may defer in full or in part claims from the tax debtor -creditor
relationship where their coll ection at due date would result in considerable hardship for the
debtor and the claim would not appear to be endangered by the deferment. The deferment
may be granted as a rule only upon application and provision of c ollateral. Tax claims
against the tax debtor may not be deferred where a third party (party obliged to pay the tax)
has to pay the tax, in particular to withhold and give to the revenue authorities the tax which
is due, for account of the tax debtor. The d eferment of the liability claim against the party
obliged to pay the tax shall be excluded where it has withheld tax -deductible amounts or
taken receipt of amounts which contain a tax.
Section 223
Postponed payment
In the case of import/export duties and excise duties, payment of due amounts may be
postponed upon application by the tax debtor and provision of collateral to the extent that
this is provided for in the tax laws.
2nd Subchapter
Payment, set -off and remission
Section 224
Place of payment, date of payment
(1) Payments to the revenue authorities shall be made to the cash office responsible.
Payments beyond the premises of the cash office may be surrendered only to a public
official who is specially authorised to accept such payment and who can pro vide
identification to verify such.
(2) Payment shall be deemed as having been effected:
1. on the day it is received, where a means of payment is surrendered or
transferred, or three days after the day it is received where a cheque is handed over or
sent,
2. on the day the amount is credited to the revenue authority, where money is
transferred to or paid into an account of the revenue authority, and where payment is
made via payment slip or postal order,
3. on the due date of payment, where direct debit is authorised.
(3) Revenue authority payments shall be made via non -cash instruments. The Federal
Ministry of Finance and the highest authorities of the Länder responsible for the revenue
administration may allow exceptions for their subordinate bodies. The day of payment shall
be, in the case of bank transfer or payment order, the third day after the order is handed in or
sent to the credit institution or, where the amount is not to be debited immediately, the third
day after it is debited.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 90 of 140
(4) The responsib le cash office may be closed for the surrender of payment against receipt.
Subs ection (2) number 1 above shall apply accordingly where, in the event of closed
premises pursuant to the first sentence above, one or more branch offices of the
Bundesbank, or, where these do not exist where the cash office is located, one or more
credit institutions, are authorised to accept payment against receipt for the cash office.
Section 224a
Objects of art in lieu of payment
(1) Where a taxpayer owes inheritance tax or ca pital tax, it shall be possible to transfer
ownership of objects of art, art collections, scientific collections, libraries, manuscripts and
archives in lieu of payment and by way of contract under public law to the Land which is
entitled to the tax revenu e, provided that it is in the public interest to acquire such items due
to their artistic, historical or academic importance. The transfer of ownership pursuant to the
first sentence above shall not count as alienation within the meaning of s ection 13(1) n umber
2, second sentence, of the Inheritance Tax Act.
(2) Contracts pursuant to subs ection (1) above shall be in written form; contracts in
electronic form shall not be permitted. The taxpayer shall address the contractual offer to the
revenue authority wi th local jurisdiction. Responsibility for concluding the contract shall rest
with the highest revenue authority of the Land which is entitled to the tax revenue. The
contract shall enter into force only after the highest authority of a Land responsible for
cultural affairs has given its consent; this consent shall be secured by the highest revenue
authority.
(3) Where a contract comes into effect, the tax debt shall be cancelled to the amount of the
sum agreed in the contract on the day ownership is transfe rred to the Land which is entitled
to the tax revenue.
(4) The tax claim may be deferred pursuant to s ection 222 for as long as it is uncertain
whether a contract will come into force. W here a contract comes into force, there shall be no
deferment interest rates levied for the period in which the claim was deferred.
Section 225
Order of amortisation
(1) Where a taxpayer owes several amounts and, in the case of voluntary payment, the
amount paid is not sufficient to amortise all debts, the debt which the tax payer designates
when making the payment shall be amortised.
(2) Where the taxpayer does not designate a debt, but makes voluntary payment which does
not cover all debts, administrative penalties shall be paid first, followed, in this order, by
coercive fi nes, tax -deductible amounts, the other taxes, costs, late -filing penalties, interest
and late -payment penalties. Within this order, the individual debts shall be arranged
according to their maturities; the revenue authority shall determine the order of amo rtisation
for amounts falling due simultaneously and with regard to late -payment penalties.
(3) Where payment is forced by administrative decision (s ection 249) and the amount
available is insufficient to amortise all debts for which enforcement was impose d or the
collateral realised, the revenue authority shall determine the order of amortisation.
Section 226
Set -off
(1) Unless otherwise stipulated, the provisions of civil law shall apply mutatis mutandis with
regard to using both claims from the tax debto r-creditor relationship and counterclaims to set
off claims.
(2) Claims arising from the tax debtor -creditor relationship may not be used as set -off where
they have lapsed through limitation or the expiry of a period of exclusion.
(3) Taxpayers may set off claims arising from the tax debtor -creditor relationship only with
counterclaims which are uncontested and have been established as final and incontestable.
(4) The political subdivision that administers the tax shall also be deemed to be creditor or
debt or of a claim from the tax debtor -creditor relationship with respect to any set -off.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 91 of 140
Section 227
Remission
The revenue authorities may remit in full or in part claims arising from the tax debtor -creditor
relationship where their coll ection would be unreaso nable given the circumstances; under
the same conditions, amounts already paid may be refunded or credited.
3rd Subchapter
Lapse of right to enforce payment of overdue tax
Section 228
Object of the limitation, limitation period
Claims arising from the tax debtor -creditor relationship shall be subject to a special limitation
period on the payment of overdue tax. The limitation period shall be five years.
Section 229
Beginning of limitation period
(1) The limitation period shall begin upon expiration of the c alendar year in which the claim
first fell due. However, it shall not begin before expiration of the calendar year in which the
assessment, from which the claim arises, of a claim arising from the tax debtor -creditor
relationship, or its cancellation, amen dment or corr ection pursuant to s ection 129 has come
into effect; a self -assessed tax return shall be deemed equivalent to an assessment of taxes.
(2) Where a notice of liability has been issued without an order to pay, the period of limitation
shall begin upon expiration of the calendar year in which the notice of liability has come into
effect.
Section 230
Suspension of limitation period
The period of limitation shall be suspended as long as the claim cannot be pursued as a
result of force majeure within the final six months of the period of limitation.
Section 231
Interruption of limitation period
(1) The period of limitation shall be interrupted through written enforcement of the claim,
through postponement of payment, through deferment, through suspensi on of
implementation, through suspension of the obligation of a customs duty debtor to pay the
duty, through provision of collateral, through delay of enforcement, through an enforcement
measure, through registration in insolvency proceedings, through incl usion in an insolvency
plan or a judicial debt clearance plan, through inclusion in proceedings whose objective is
the discharge for the debtor of residual debt, and through investigations of the revenue
authority into the residence or abode of the person obliged to pay. S ection 169(1), third
sentence, shall apply mutatis mutandis.
(2) The interruption of the period of limitation through postponement of payment, through
deferment, through suspension of implementation, through suspension of the obligation of a
customs duty debtor to pay the duty, through provision of collateral, through delay of
enforcement, through an enforcement measure which leads to a security right of an
execution creditor, a judgement creditor’s mortgage or any other preferential right of
satisfaction, through registration in insolvency proceedings, through inclusion in an
insolvency plan or a judicial debt clearance plan, or through inclusion in proceedings whose
objective is the discharge for the debtor of residual debt shall continue until the
postponement of payment, the deferment, the suspension of implementation, the suspension
of the obligation of a customs duty debtor to pay the debt or the delay of enforcement has
ended, the collateral, the security right of an execution creditor , the judgement creditor’s
mortgage or any other preferential right of satisfaction is rescinded, the insolvency
proceedings have concluded, the insolvency plan or the judicial debt clearance plan has
been fulfilled or has lapsed, the discharge of residual debt has come into effect or the
proceedings which have as their objective the discharge of residual debt have been

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 92 of 140
terminated prematurely. Where a claim is enforced against the revenue authority, the
resulting interruption of the period of limitation sha ll not end before a final and incontestable
decision has been reached on the claim.
(3) A new period of limitation shall begin upon expiration of the calendar year in which the
interruption has ended.
(4) The period of limitation shall only be interrupted with regard to the amount to which the
interrupting action relates.
Section 232
Effect of limitation period
The claim arising from the tax debtor -creditor relationship and the dependent interest shall
be rescinded upon expiration of the limitation period.
Second Chapter
Interest accrual, late -payment penalties
1st Subchapter
Interest accrual
Section 233
General
Interest shall be charged on claims arising from the tax debtor -creditor relationship
(section 37) only to the extent that this is legally prescribe d. Interest shall not be charged on
claims to ancillary tax payments (s ection 3(4)) and the corresponding refund claims.
Section 233a
Interest accrual on tax deficiencies and tax refunds
(1) Where the assessment of income tax, corporation tax, capital tax, VAT or trade tax leads
to a differential within the meaning of subs ection (3) below, interest shall be charged on this
differential. This shall not apply to the assessment of prepayments and tax -deductible
amounts.
(2) The period of interest accrual shall begin 15 months after expiration of the calendar year
in which the tax has arisen. With respect to income tax and corporation tax, it shall begin 23
months after this date where the income from agricultural and forestry undertakings is more
than other inc ome when the tax is first assessed. It shall end on expiration of the day on
which the tax assessment comes into effect.
(2a) Notwithstanding subs ection (2), first and second sentences, above, where the tax
assessment is based on an event with retroactive effect (s ection 175(1), first sentence,
number 2 and s ection 175(2)) or a loss deduction pursuant to s ection 10d(1) of the Income
Tax Act, the period of interest accrual shall begin 15 months after expiration of the calendar
year in which the event with re troactive effect occurred or the loss was incurred.
(3) The assessed tax minus the tax -deductible amounts to be credited, the corporation tax to
be credited and the prepayments assessed up to the beginning of the period of interest
accrual (differential) s hall form the basis for calculating the interest. W ith respect to capital
tax, the assessed tax minus the assessed prepayments or the annual tax assessed to date
shall form the basis of the differential for calculating the interest. Interest shall be charg ed on
a differential in the taxpayer’s favour only up to an amount equal to the amount to be
refunded; interest shall begin to accrue at the earliest on the day of payment.
(4) The assessment of interest should be issued in conjunction with the tax assessm ent.
(5) Where the tax assessment is cancelled, amended or corrected pursuant to s ection 129,
any previous assessment of interest shall be amended; the same shall apply where the
crediting of tax amounts is withdrawn, revoked or corrected pursuant to s ecti on 129. The
differential between the assessed tax and the previously assessed tax, both reduced by the
tax -deductible amounts to be credited and the corporation tax to be credited, shall form the
basis for calculating interest. The resulting interest amoun t shall be supplemented by the
assessable interest up to this point; where the differential is in the taxpayer’s favour,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 93 of 140
assessed interest shall be added to this amount. In other respects, subs ection (3), third
sentence, above shall apply accordingly.
(6) Subs ections (1) to (5) above shall apply accordingly to the annual adjustment of wages
tax.
(7) In applying subs ection (2a) above, subs ections (3) and (5) above shall apply under the
proviso that the differential is to be divided into sub -differentials, ea ch sub -differential being
comprised of sub -amounts with the same starting date for the accrual of interest; interest
shall be calculated for each sub -differential separately and in the chronological order of the
sub -differentials, beginning with the intere st on the sub -differential with the earliest
commencement date of interest accrual. Where a sub -differential in the taxpayer’s favour
results, assessed interest shall be charged on this amount at the earliest from the beginning
of the decisive period of in terest accrual for this sub -differential; interest for the period up to
the beginning of this sub -differential’s period of interest accrual shall remain permanently.
This shall also apply where, previously within the same interest calculation, interest had
been calculated on a sub -differential in the taxpayer’s favour.
Section 234
Interest during deferment
(1) Interest shall be levied for the period for which a deferment of claims arising from the tax
debtor -creditor relationship is granted. Where upon expi ration of the deferment the tax
assessment notice is cancelled, amended or corrected pursuant to s ection 129, the interest
accrued up to this time shall remain unaffected.
(2) Interest may be waived in full or in part where its coll ection would be unreason able in
individual cases.
(3) Interest amounts pursuant to s ection 233a which have been assessed for the same
period shall be credited.
Section 235
Interest accrual on evaded taxes
(1) Interest shall be charged on evaded taxes. The debtor of the interest s hall be the person
to whose advantage the taxes have been evaded. Where the tax evasion is committed by a
person other than the tax debtor failing to fulfil his obligation to give withheld taxes to the
revenue authority or to pay taxes imposed on another, this person shall be the debtor of the
interest.
(2) The period of interest accrual shall begin upon occurrence of the understating of the
taxes or attainment of the tax advantage unless the evaded amounts would have fallen due
at a later date had the taxe s not been evaded. In this case, the later point in time shall be
decisive.
(3) The period of accrual of interest shall end upon payment of the evaded taxes. Interest
pursuant to this provision shall not be levied in a period to which a late -payment penalt y
applies or for which the payment is deferred or implementation suspended. W here upon
conclusion of the period of interest accrual the tax assessment notice is cancelled, amended
or corrected pursuant to s ection 129, the interest accrued up to this time s hall remain
unaffected.
(4) Interest amounts pursuant to s ection 233a which have been assessed for the same
period shall be credited.
Section 236
Interest on refund amounts during legal proceedings
(1) Subject to the provisions of subs ection (3) below, whe re an assessed tax is reduced or a
tax rebate granted by final and incontestable judicial ruling or as a result of such a ruling,
interest shall accrue on the amount to be refunded or rebated from the day proceedings are
instigated to the day of payment. W here the amount to be refunded is paid only after legal
proceedings have been instigated, interest shall begin to accrue from the day of payment.
(2) Subs ection (1) above shall be applied accordingly where

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 94 of 140
1. the legal dispute is settled by cancellation of or amendment to the
administrative act being disputed or by issue of the administrative act being requested, or
2. a final and incontestable judicial ruling or an incontestable administrative act
through which the dispute is settled leads
a) to the reduct ion of the tax assessed in a follow -up notice,
b) to the reduction of trade tax following amendment to the basic trade tax
amount.
(3) Interest shall not be charged on an amount to be refunded or rebated where the
participant has been ordered to pay the co sts of legal remedy pursuant to s ection 137, first
sentence, of the Code of Procedure for Fiscal Courts.
(4) Interest amounts pursuant to s ection 233a which have been assessed for the same
period shall be credited.
(5) A notice of interest amounts shall no t be cancelled or amended when the tax assessment
notice is cancelled, amended or corrected pursuant to s ection 129 following conclusion of
the legal remedy proceedings.
Section 237
Interest while implementation is suspended
(1) Where an obj ection or an ac tion for rescission against a tax assessment notice, a self –
assessed tax return or an administrative act which cancels or amends a tax rebate notice, or
against an obj ection ruling on one of these administrative acts, has not led to the desired
result and can no longer be appealed, interest shall be charged on the owed amount with
respect to which implementation of the disputed administrative act was suspended. The first
sentence above shall apply accordingly where implementation of a follow -up notice has b een
suspended following the submission of a formal out -of-court or court appeal against a basic
assessment notice (s ection 171(10)) or an appeals ruling on a basic assessment notice.
(2) Interest shall be levied from the day of receipt of the out -of-court appeal at the authority
whose administrative act is being challenged or from the day of instigation of judicial
proceedings to the day on which the suspension of implementation ends. Where
implementation is suspended only once the out -of-court appeal has b een received or the
proceedings instigated, interest shall be charged starting on the day on which the
suspension of implementation comes into effect.
(3) Subs ections (1) and (2) above shall be applied accordingly where implementation of a
basic trade tax assessment notice or trade tax assessment notice is suspended following
suspension of the implementation of an income tax assessment notice, a corporation tax
assessment notice or a notice of determination.
(4) S ection 234(2) and (3) shall apply accordingl y.
(5) A notice of interest amounts shall not be cancelled or amended when the tax assessment
notice is cancelled, amended or corrected pursuant to s ection 129 following conclusion of
the legal remedy proceedings.
Section 238
Amount and calculation of inte rest
(1) The interest shall be one half per cent for every month. It shall be payable only for full
months from the day of commencement of the accrual period; uncompleted months shall not
be included. W here the claim on which interest is chargeable is sett led by set -off, the day on
which the debt of the person seeking set -off becomes due shall be deemed to be the day of
payment.
(2) In calculating interest, the amount on which interest is chargeable shall be rounded down
for every type of tax to the next fi gure divisible by 50 euros.
Section 239
Interest assessment

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 95 of 140
(1) The provisions applying with respect to taxes shall be applied accordingly to interest, with
the period for assessment consisting of one year, however. The period for assessment shall
begin:
1. in the cases described in s ection 233a, upon expiration of the calendar year in
which the tax was assessed, cancelled, amended or corrected pursuant to s ection 129,
2. in the cases described in s ection 234, upon expiration of the calendar year in
which t he deferment has ended,
3. in the cases described in s ection 235, upon expiration of the calendar year in
which the assessment of the evaded taxes has become final and incontestable, but not
before expiration of the calendar year in which criminal proceedi ngs initiated have been
closed and can no longer be appealed,
4. in the cases described in s ection 236, upon expiration of the calendar year in
which the tax has been refunded or the tax rebate paid out,
5. in the cases described in s ection 237, upon expir ation of the calendar year in
which an obj ection or action for rescission has not led to the desired result and can no
longer be appealed.
The period for assessment for the cases described in s ection 233a shall not expire for as
long as the tax assessment, its cancellation, its amendment or its corr ection pursuant to
section 129 is still permissible.
(2) Interest shall be rounded to the full euro in the taxpayer’s favour. It shall be assessed
only where it amounts to at least 10 euros.
2nd Subchapter
Late -payment penalties
Section 240
Late -payment penalties
(1) Where a tax is not paid by the end of the due date, a late -payment penalty of 1 per cent
of the rounded tax amount in arrears shall be payable for each month of default; the amount
shall be rounded do wn to the nearest amount divisible by 50 euros. The same shall apply to
repayable tax rebates and debts from liability to the extent that the liability extends to taxes
and repayable tax rebates. Default pursuant to the first sentence above shall not be de emed
to have occurred before the tax has been assessed or declared. Where the assessment of a
tax or tax rebate is cancelled, amended or corrected pursuant to s ection 129, the late –
payment penalties effected up to this point shall remain unaffected; the sa me shall apply
where a notice of liability is withdrawn, revoked or corrected pursuant to s ection 129. Where
the claim is settled by set -off, the late -payment penalties which have accrued up to the due
date of the debt of the person seeking set -off shall r emain unaffected.
(2) Late -payment penalties shall not arise with regard to ancillary tax payments.
(3) No late -payment penalty shall be levied for defaults of up to three days. This shall not
apply to payments pursuant to s ection 224(2) number 1.
(4) In c ases of joint and several debt, late -payment penalties shall arise with respect to each
joint and several debtor in default. However, the total value of the late -payment penalties to
be paid shall not be higher than that had the default occurred on the par t of one joint and
several debtor only.
Third Chapter
Provision of collateral
Section 241
Nature of collateral
(1) Whoever is required under the tax laws to provide collateral may do so:

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 96 of 140
1. by depositing with the competent revenue authority means of paymen t in
circulation in the territory of application of this Code,
2. by pledging the securities named in subs ection (2) below and which are
entrusted for custody by the person obliged to provide the collateral to the Bundesbank or
a credit institution which i s licensed to operate a security deposit business, provided that
no other rights take priority over the pledgee’s right. The liability of securities for amounts
owing to the custodian for their custody and administration shall remain unaffected. The
pledgi ng of securities shall be deemed equivalent to the pledging of shares in a collective
securities holding pursuant to s ection 6 of the Securities Deposit Act as published in the
revised version in the Federal Law Gazette, Part III, number 4130 -1, as amended by
Article 1 of the Act of 17 July 1985 (Federal Law Gazette I, p. 1507),
3. by pledging savings, accompanied by the surrender of the savings bank book,
in a credit institution which is licensed to operate a deposit -taking business within the
territory of application of this Code, provided that no other rights take priority over the
pledgee’s right,
4. by pledging receivables which are entered in a debt register of the Federation,
or a special fund of the Federation or a Land, provided that no other rights take priority
over the pledgee’s right,
5. by creating
a) first mortgages, land charges or annuity charges on real property or
hereditary building rights which are situated within the territory of application of
this Code,
b) first maritime mortgages on s hips, ships under construction or floating docks
which are entered in a register of ships or ship construction register kept within
the territory of application of this Code,
6. by pledging receivables for which a first ordinary mortgage on real property o r
hereditary building rights situated within the territory of application of this Code exists, or
by pledging first land charges or annuity charges on real property or hereditary building
rights situated within the territory of application of this Code, wh ere no priority rights to
these receivables, land charges or annuity charges exist,
7. by way of debt commitment, guarantee or liability under bills of exchange
provided by a suitable tax guarantor (s ection 244).
(2) Securities within the meaning of subs ec tion (1) number 2 above shall be
1. bonds issued by the Federation, a special fund of the Federation, a Land, a
municipality or an association of municipalities,
2. bonds of international facilities to which the Federation has transferred
sovereign rights, where they are licensed to trade on official bourses within the territory of
application of this Code,
3. bonds issued by the Deutsche Genossenschaftsbank, the Deutsche
Siedlungs – und Landesrentenbank, the Deutsche Ausgleichsbank, the Kreditanstalt für
Wiederaufbau and the Landwirtschaftliche Rentenbank,
4. Pfandbriefs, municipal bonds and related bonds,
5. Bonds, the interest and redemption of which are guaranteed by the Federation
or by a Land.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 97 of 140
(3) A bonded warehouse of taxable goods shall be deemed to be adequate collateral for the
tax imposed thereon.
Section 242
The effect of depositing means of payment
Means of payment which are deposited pursuant to s ection 241(1) number 1 shall become
the property of the political subdivision to which the revenue a uthority with which they were
deposited belongs. No interest shall be charged on the claim for repayment. Upon deposit,
the political subdivision whose claim is to be secured by the deposit shall acquire a lien on
the claim to reimbursement of the deposite d means of payment.
Section 243
Pledging securities
The provision of collateral by pledging securities pursuant to s ection 241(1) number 2 shall
be permissible only where the custodian assumes responsibility for guaranteeing the
securities’ marketability. Assuming this responsibility shall include liability for ensuring that
1. the right of reclaim of the depositor is not restricted by judicial bans and
confiscation,
2. that the entrusted securities are not registered as stolen or lost in the collective
lists of called -up securities and are neither subject to payment blocks nor have been
called in for cancellation or cancelled.
3. that the securities are registered to the bearer, or, in the event that they are
non -negotiable, bear a blank endorsement and are otherwise not blocked, and that the
interest coupons and the renewal coupons are enclosed with the securities.
Section 244
Suitable tax guarantors
(1) Debt commitments and guarantees pursuant to the Civil Code as well as liabilities under
bills of exchang e set out in Articles 28 or 78 of the Bills of Exchange Act shall be deemed
suitable as collateral only where these have been provided or entered into by persons who
1. possess sufficient assets to cover the extent of the collateral to be provided,
and
2. have their general or an agreed jurisdiction within the territory of application of
this Code.
Guarantees shall include the waiver of the defence of unexhausted remedies pursuant to
section 771 of the Civil Code. Debt commitments and guarantee declarations shall be issued
in writing; electronic versions shall not be permitted. The guarantor and the secured party
may not provide reciprocal collateral for each other, nor may they be economically related.
The Federal Ministry of Finance shall decide on the acc eptance of guarantee declarations in
procedures pursuant to the A.T.A Convention of 6 December 1961 (Federal Law Gazette II
1965, p. 948) and those pursuant to the T.I.R. Convention of 14 November 1975 (Federal
Law Gazette II 1979, p. 445) in their respect ive versions in force. The Federal Finance Office
(Northern Region) shall decide on the acceptance of declarations on individual guarantees in
the form of guarantee vouchers pursuant to Commission Regulation (EEC) No 2454/93 of 2
July 1993 laying down prov isions for the implementation of Council Regulation (EEC)
2913/92 establishing the Community Customs Code (OJ L 253, p. 1) and the Convention of
20 May 1987 on a common transit procedure (OJ L 226, p. 2) in their respective versions in
force.
(2) The feder al finance office may authorise credit institutions and insurance companies
providing collateral for others on a commercial basis to act in general as tax guarantor where
they are licensed to operate within the territory of application of this Code. The fe deral
finance office in whose district the registered office of the enterprise is situated shall be

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 98 of 140
responsible for the authorisation. For foreign enterprises with a branch office within the
territory of application of this Code, jurisdiction shall be acco rding to the location of the
branch office, where there are several branch offices, the location of the economically most
significant branch office shall be decisive; where there is no branch office, the federal finance
office in whose district a guarantee is to be assumed for the first time shall be responsible. A
maximum amount (guarantee amount) shall be set when issuing authorisation. The total
amount assumed by the tax guarantor from debt commitments, guarantees and liabilities
under bills of exchange with respect to the revenue administration may not exceed the
guarantee amount.
Section 245
Other items as collateral
The revenue authority may at its own discretion accept as collateral items other than those
described in s ection 241. Preference shall be given to assets which offer enhanced security
or which upon the onset of even extraordinary circumstances can be realised without
considerable difficulty and within a suitable timeframe.
Section 246
Acceptance value
The revenue authority shall determine at its own discretion the values at which objects may
be accepted as collateral. However, the acceptance value may not exceed the expected
proceeds of realisation minus the costs of realisation. It may not be below the values named
in s ection 234(3), s ection 236 and s ection 237, first sentence, of the Civil Code for objects
described in s ection 241(1) numbers 2 and 4 and for movable items which are accepted as
collateral pursuant to s ection 245.
Section 247
The exchange of collateral
Whoever has provided coll ateral pursuant to s ections 241 to 245 shall be entitled to replace
the collateral or part of the collateral with other suitable collateral pursuant to s ections 241 to
244.
Section 248
Obligation to provide additional collateral
Collateral shall be supplem ented, or other collateral provided, where collateral already
provided becomes inadequate.
Sixth Part
Enforcement
First Chapter
General provisions
Section 249
Enforcement authorities
(1) The revenue authorities may, by administrative decision, enforce admi nistrative acts
ordering a monetary payment, other performance, tolerance or omission of a particular
action. This shall also apply to self -assessed tax returns (s ection 168). Enforcement
authorities shall mean the tax offices and the main customs offices; section 328(1), third
sentence, shall remain unaffected.
(2) For the purposes of preparing enforcement, the revenue authorities may determine the
financial circumstances and income of the judgement debtor. The revenue authority may use
information known t o it, protected pursuant to s ection 30, which they are entitled to utilise in
enforcing taxes and ancillary tax payments, for enforcement owing to monetary payments
other than taxes and ancillary tax payments.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 99 of 140
Section 250
Request for recovery
(1) Insofar a s one enforcement authority carries out enforcement measures at the request of
another enforcement authority, the requested enforcement authority shall take the place of
the other enforcement authority. The requesting enforcement authority shall remain
res ponsible for the enforceability of the claim.
(2) Where the requested enforcement authority does not believe it has jurisdiction or
believes the action requested of it is impermissible, it shall inform the requesting
enforcement authority of its reservatio ns. Where the requesting authority insists that the
request be carried out and the requested authority declines, the supervisory authority of the
requested authority shall decide.
Section 251
Enforceable administrative acts
(1) Administrative acts may be e nforced insofar as the implementation thereof is not
suspended or the implementation is not blocked through the submission of an appeal
(section 361; s ection 69 of the Code of Procedure for Fiscal Courts). Import and export duty
assessment notices may furt hermore only be enforced insofar as the customs debtor’s
obligation to pay duty is not suspended (Article 222(2) of the Customs Code).
(2) The provisions of the Insolvency Code as well as s ection 79(2) of the Federal
Constitutional Court Act shall remain u naffected. The revenue authority shall, in the cases
referred to in s ection 201(2), s ections 257 and 308(1) of the Insolvency Code, be entitled to
carry out enforcement measures against the debtor by administrative decision.
(3) Where the revenue authority asserts a claim arising from the tax debtor -creditor
relationship as a creditor’s claim in insolvency proceedings, the revenue authority shall,
where necessary, establish the creditor’s claim by virtue of written administrative act.
Section 252
Judgement creditor
In the enforcement proceedings, the body to which the enforcement authority belongs shall
be the creditor for the claims to be enforced.
Section 253
Judgement debtor
The judgement debtor shall be the person against whom enforcement proceedings are
directed pursuant to s ection 249.
Section 254
Preconditions for commencing with enforcement
(1) Unless otherwise stipulated, enforcement may only commence if payment is due and a
demand for payment or tolerance or omission of an action (demand for payment ) has been
issued to the judgement debtor and at least one week has elapsed since issue of the
request. The demand for payment may be issued in combination with the administrative act
to be enforced. A demand for payment shall also be necessary where the a dministrative act
also takes effect against the judgement debtor without him having been notified. Insofar as
the judgement debtor has not made a payment owed by him on the basis of a self -assessed
tax return, a demand for payment shall not be required.
(2) A demand for payment of a late -payment penalty and interest shall not be required where
they are recovered together with the tax. This shall apply mutatis mutandis to the
enforcement costs where they are recovered together with the principal claim.
Secti on 255
Enforcement against legal persons under public law
(1) Enforcement against the Federation or a Land shall not be permissible. In other respects,
enforcement against legal persons under public law who are subject to state supervision
shall only be pe rmissible with the approval of the relevant supervisory authority. The

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 100 of 140
supervisory authority shall determine the time of the enforcement and the assets upon which
enforcement may be levied.
(2) The limitations of subs ection (1) above shall not apply to pub lic credit institutions.
Section 256
Obj ections to enforcement
Obj ections to the administrative act to be enforced shall be raised outside of the enforcement
proceedings using the legal remedies permitted for this purpose.
Section 257
Stay and limitation o f enforcement
(1) Enforcement shall be stayed or limited as soon as
1. the preconditions for enforcement set out in s ection 251(1) no longer apply,
2. the administrative act which serves as the basis for enforcement is cancelled,
3. the claim to payment ha s expired,
4. the payment has been deferred.
(2) In the cases referred to in subs ection (1) numbers 2 and 3 above enforcement measures
that have already been undertaken shall be cancelled. Where the administrative act has
been cancelled by a court decision , this shall only apply insofar as the decision has become
incontestable and there is no need to issue a new administrative act as a result of the
decision. In other respects, the enforcement measures shall remain in place insofar as their
cancellation has not been expressly ordered.
Section 258
Temporary stay or limitation of enforcement
Insofar as enforcement proves inequitable in individual cases, the enforcement authority may
temporarily stay or limit enforcement or cancel an enforcement measure.
Second Chapter
Enforcement owing to monetary claims
1st Subchapter
General provisions
Section 259
Formal reminder
A formal reminder instructing payment within one week should generally be sent to the
judgement debtor before the commencement of enforcement. A pos tal cash on delivery
order shall also be deemed to be a reminder. A formal reminder shall not be required where
the judgement debtor receives a reminder of the payment before the due date. General
payment reminders may also take the form of a public notice .
Section 260
Statement of the reason for the indebtedness
The enforcement order or the attachment order shall state the reason for which the monetary
amounts to be recovered are owed.
Section 261
Write -off
Claims arising from the tax debtor -creditor relat ionship may be written off where it is clear
that coll ection will not lead to the desired result or where the costs of coll ection are not in
proportion to the amount.
Section 262
Third party rights

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 101 of 140
(1) Where a third party asserts that he has a right blocki ng the sale of the object of
enforcement or obj ections are raised pursuant to s ections 772 to 774 of the Code of Civil
Procedure, the obj ection to the enforcement shall, where necessary, be raised by bringing
an action before the ordinary courts. A third p arty shall also be deemed to be a person who
is obliged to tolerate enforcement against an asset managed by him where he asserts that
objects belonging to him are affected by the enforcement. The rights blocking the sale shall
be determined by civil law.
(2) S ections 769 and 770 of the Code of Civil Procedure shall apply with respect to the stay
of enforcement and the cancellation of enforcement measures.
(3) The action shall only be brought before the court in whose district the enforcement takes
place. W h ere the action is brought against the body to which the enforcement authority
belongs and against the judgement debtor, they shall be deemed to be joined parties.
Section 263
Enforcement against spouses
The provisions of s ections 739, 740, 741, 743, 744a a nd 745 of the Code of Civil Procedure
shall be applied accordingly to enforcement against spouses.
Section 264
Enforcement against the usufructuary
The provision of s ection 737 of the Code of Civil Procedure shall be applied accordingly to
enforcement agai nst properties subject to the usufruct of an asset.
Section 265
Enforcement against heirs
The provisions of s ections 1958, 1960(3) and s ection 1961 of the Civil Code and
sections 747, 748, 778, 779, and 781 to 784 of the Code of Civil Procedure shall be ap plied
accordingly to enforcement against heirs.
Section 266
Other cases of limited liability
The provisions of s ections 781 to 784 of the Code of Civil Procedure shall be applied
accordingly to the limited liability arising pursuant to s ection 1489 of the Civil Code, the
provision of s ection 781 of the Code of Civil Procedure shall be applied to the limited liability
arising pursuant to s ections 1480, 1504 and 2187 of the Civil Code.
Section 267
Enforcement proceedings against associations of persons withou t legal capacity
An enforceable administrative act against association of persons shall suffice for
enforcement against their assets where they are associations of persons without legal
capacity and are taxable as such. This shall apply accordingly to spec ial-purpose funds and
other taxable entities similar to a legal person.
2nd Subchapter
Apportionment of a joint and several obligation
Section 268
General
Where persons are joint and several debtors because they have been jointly assessed for an
income tax or capital tax, each of them may apply for enforcement of this tax to be limited
respectively to the amount resulting in accordance with s ections 269 to 278 where taxes are
apportioned.
Section 269
Application
(1) The application shall be lodged in writin g to, or declared for record at, the tax office
responsible for the taxation of income or capital at the time of submitting the application.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 102 of 140
(2) The application may be made at the earliest following notification of the demand for
payment. An application sh all be no longer permissible once tax arrears have been paid in
full. The application shall contain all the information required to apportion the tax insofar as
this information is not contained in the tax return.
Section 270
General apportionment formula
Tax arrears shall be apportioned in proportion to the amounts which would result from
individual assessment in accordance with s ection 26a of the Income Tax Act and
sections 271 to 276. The actual and legal findings used for the tax assessment in the case of
joint assessment shall be decisive insofar as the application of the provisions on individual
assessment does not lead to deviations.
Section 271
Apportionment formula for capital tax
Capital tax shall be apportioned as follows:
1. Subject to the deviat ions in numbers 2 and 3 below, the provisions of the
Valuation Act and the Capital Tax Act as used as the basis for joint assessment shall be
assumed in calculating the assets and the capital tax of the individual joint and several
debtor.
2. A spouse’s ec onomic assets which in the case of joint assessment were
attributed to the other spouse as agricultural and forestry assets or as business assets
shall be treated as own agricultural or forestry assets or own business assets.
3. Debts which are not economi cally related to particular economic assets
allocated to a joint and several debtor shall be deducted in equal shares from the
individual joint and several debtors, insofar as it is not possible to establish a particular
debtor.
Section 272
Apportionment f ormula for prepayments
(1) Prepayments outstanding shall be apportioned in proportion to the amounts which would
result from a separate assessment of the prepayments. An application for appointment of
prepayments shall simultaneously be deemed to be an app lication for apportionment of
additional prepayments falling due in the same assessment period and of any final payment.
A final apportionment shall be conducted once the assessment has been performed. The
total tax minus the amounts which have not been in cluded in the apportionment of the
prepayments shall be apportioned. In doing so, every joint and several debtor shall be
credited with the amounts paid by him towards the apportioned prepayments. Where this
results in overpayment compared to the amount of apportionment, the amount overpaid shall
be refunded.
(2) Where the prepayments are apportioned only once assessment has taken place, the
apportionment formula applicable for the assessed tax shall be used.
Section 273
Apportionment formula for tax defici encies
(1) Where the amendment of a tax assessment or its corr ection pursuant to s ection 129
leads to a tax deficiency, the tax arrears arising from the deficiency shall be apportioned in
proportion to the excess amounts which result from a comparison of t he corrected individual
assessments with the earlier individual assessments.
(2) The apportionment formula referred to in subs ection (1) above shall not be applied where
the tax hitherto assessed has not yet been repaid.
Section 274
Special apportionment f ormula

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 103 of 140
Notwithstanding the provisions of s ections 270 to 273, the tax arrears may be apportioned
according to a formula jointly proposed by the joint and several debtors, if repayment is
guaranteed. The joint proposal shall be lodged in writing or declared for record; it shall be
signed by all joint and several debtors.
Section 275
Rounding down
The amount to be apportioned shall be rounded down to the full euro. The calculated,
apportioned amounts shall be rounded up or down to the nearest amount divisible by 10
cents such that their total corresponds to the amount serving as the basis for the
apportionment.
Section 276
Tax arrears, instigation of enforcement
(1)Where the application is lodged with the revenue authority prior to the instigation of
enforceme nt, the tax due at the time of receipt of the application for apportionment shall be
apportioned.
(2) Where the application is lodged after the instigation of enforcement, the tax due at the
time of instigating the enforcement, on account of which enforcem ent action is being
undertaken, shall be apportioned.
(3) Tax -deductible amounts and separately assessed prepayments shall also be included in
the apportionment even where they have been paid prior to the application being lodged.
(4) Tax arrears shall als o include late -payment penalties, interest and late -filing penalties.
(5) The enforcement shall be deemed as instigated upon issue of the notice of arrears.
(6) Payments which have been made by a joint and several debtor, in the cases of
subs ection (1) abo ve, after submission of the application, in the cases of subs ection (2)
above, after the instigation of enforcement, or which pursuant to subs ection (3) above are to
be included in the apportionment, shall be credited to the debtor who made the payments or
for whom the payments have been made. W here, in doing so, this results in an overpayment
compared with the amount of apportionment, the overpayment shall be refunded.
Section 277
Enforcement
As long as no incontestable decision has been taken regarding th e application for the
limitation of the enforcement, enforcement measures may only be implemented to the extent
that this is necessary to secure the claim.
Section 278
Limitation of enforcement
(1) Following apportionment, the enforcement may only be imple mented in accordance with
the amounts attributable to the individual debtors.
(2) Where assets are given to a tax debtor free of charge by a person assessed with him
during or after the assessment period for which tax arrears still exist, tax may, until th e
expiration of the tenth calendar month from the date of the issuance of the apportionment
notice, be claimed from the recipient above and beyond the amount resulting pursuant to
subs ection (1) above up to the fair market value of this donation in kind. T his shall not apply
to common occasional gifts.
Section 279
Form and content of the apportionment notice
(1) Following the instigation of enforcement, a uniform decision on the application for the
limitation of enforcement shall be taken with respect to th e parties involved by way of written
notice (apportionment notice). However, a decision shall not be required where no
enforcement measures are instigated or enforcement measures already instigated are re –
suspended.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 104 of 140
(2) The apportionment notice shall indic ate the amount of the proportional tax payable by
each joint and several debtor; it shall be accompanied by advice indicating which legal
remedy is permissible, and the time period within which and the authority to which this
remedy must be submitted. The notice should further include:
1. the amount of the tax to be apportioned,
2. the point in time decisive for the calculation of the tax arrears,
3. the extent of the bases of taxation which have been attributed to the individual
joint and several debtors w here there is divergence from the information provided by the
joint and several debtors,
4. the amount of the tax payable by the individual joint and several debtors in the
case of individual assessment (s ection 270),
5. the amounts to be credited against the joint and several debtor’s apportioned
tax.
Section 280
Amendments to the apportionment notice
(1) Except in the cases referred to in s ection 129, the apportionment notice may only be
amended where
1. it subsequently becomes known that the apportionmen t is based on incorrect
information and the tax arrears could not be recovered in whole or in part as a result of
incorrect apportionment,
2. the tax arrears increase or decrease through the cancellation or amendment of
the tax assessment or its corr ection pursuant to s ection 129.
(2) After the termination of enforcement, an amendment to the apportionment notice or the
corr ection thereof pursuant to s ection 129 shall no longer be permissible.
3rd Subchapter
Enforcement against movable assets
I. General
Sect ion 281
Attachment
(1) Enforcement against movable assets shall be effected by attachment.
(2) Attachment may not be expanded further than is necessary to cover the monetary
amounts to be recovered and the costs of enforcement.
(3) The attachment shall not be made where an excess over the cost of the enforcement
cannot be expected from the realisation of the attachable objects.
Section 282
Effect of the attachment
(1) Attachment shall result in the body to which the enforcement authority belongs acquiring
a lien on the attached object.
(2) The lien shall grant the body in proportion to other creditors the same rights as a lien
within the meaning of the Civil Code; liens and preferential rights which are not treated as
equivalent to this lien in insolvency pr oceedings shall have priority.
(3) A lien imposed on the basis of a previous attachment shall have priority other a lien
imposed on the basis of a later attachment.
Section 283
Exclusion of warranty claims

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 105 of 140
Where an object is sold as a result of the attachm ent, the buyer shall not be entitled to assert
warranty claims for a defect of title or for a defect in the items sold.
Section 284
Sworn statement of assets
(1) On demand, the judgement debtor shall present to the enforcement authority an
inventory of h is assets and specify the reason and evidence for his receivables where
1. the enforcement against the movable assets has not resulted in payment in full,
2. it is to be presumed that enforcement against movable assets will not result in
payment in full,
3. the judgement debtor has refused the search (s ection 287) or
4. the enforcement officer has repeatedly been unsuccessful in encountering the
judgement debtor at his living quarters or business premises after having given notice of
the enforcement once at least two weeks in advance; this shall not apply where the
judgement debtor provides sufficient justification for his absence and credibly establishes
the reason.
(2) The inventory of assets shall also indicate
1. the disposals for a consideration by the debtor to a related person (s ection 138
of the Insolvency Code) in the last two years prior to the first deadline scheduled for the
provision of a sworn statement of assets,
2. the services provided free of charge by the debtor in the last four years prior to
the first deadline scheduled for the provision of a sworn statement of assets insofar as
they were not related to common occasional gifts of a low value.
The inventory of assets need not include items not subject to attachment pursuant to
section 811(1 ), numbers 1 and 2 of the Code of Civil Procedure unless an attachment in
exchange may be considered.
(3) The judgement debtor shall make a sworn statement to be recorded in writing to the
effect that he has provided the information requested from him corr ectly and completely to
the best of his knowledge and belief. The enforcement authority may waive the
administration of the sworn statement of assets.
(4) A judgement debtor who has provided the sworn statement of assets contained in this
provision or in s ection 807 of the Code of Civil Procedure shall, where the provision of a
sworn statement of assets has not yet been deleted on the register of debtors (s ection 915 of
the Code of Civil Procedure), be obliged in the first three years following his original sworn
statement to provide another sworn statement of assets only where it is to be presumed that
he has later acquired assets or an existing employment relationship with him has been
dissolved. The preconditions stated in subs ection (1) above shall no lo nger be necessary.
The enforcement authority shall establish ex officio whether the registry of debtors contains
an entry showing that the judgement debtor provided a sworn statement of assets within the
last three years.
(5) The enforcement authority in w hose district the judgement debtor’s residence or abode is
located shall be responsible for administering the sworn statement of assets. Where these
preconditions are not met at the enforcement authority which is pursuing the enforcement,
the revenue autho rity may administer the sworn statement of assets if the judgement debtor
is prepared to provide the sworn statement.
(6) The invitation to the appointment to provide a sworn statement of assets shall be served
on the judgement debtor himself. Where an app eal has been lodged and substantiated
against the order to provide a sworn statement of assets, the judgement debtor shall only be
obliged to provide a sworn statement of assets after the decision regarding the appeal

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 106 of 140
becomes incontestable. This shall not apply where and insofar as the obj ections have
already been rejected incontestably in a previous case.
(7) After the sworn statement of assets has been provided, the enforcement authority shall
inform the local court responsible pursuant to s ection 899(1) of the Code of Civil Procedure
of the surname, first name, date of birth and address of the judgement debtor as well as the
date of the provision of the sworn statement of assets for the purposes of entry into the
register of debtors and shall transmit a c ertified copy of the inventory of assets.
Sections 915a to 915h of the Code of Civil Procedure shall be applied.
(8) Where the judgement debtor fails to present himself without sufficient justification on the
date scheduled for the provision of the sworn s tatement of assets before the enforcement
authority described in subs ection (5), first sentence, above or where he refuses without
reason to present the inventory of assets or provide a sworn statement of assets, the
enforcement authority pursuing enforcem ent may request the local court responsible
pursuant to s ection 899(1) of the Code of Civil Procedure to order arrest so as to force the
provision of the sworn statement of assets. S ections 901, 902, 904 to 906, 909(1), second
sentence, 909(2), 910 and 913 to 915h of the Code of Civil Procedure shall be applied
mutatis mutandis. A bailiff shall conduct the arrest of the judgement debtor. S ection 292 shall
apply mutatis mutandis. Following the arrest of the judgement debtor, the sworn statement of
assets may be administered by the bailiff responsible pursuant to s ection 902 of the Code of
Civil Procedure where the seat of the enforcement authority described in subs ection (5)
above is not located in the district of the local court responsible for the bailiff o r where it is
not possible for the enforcement authority to administer the sworn statement of assets.
Subs ection (3), second sentence, above shall apply accordingly.
(9) The decision of the local court rejecting the request of the enforcement authority for an
order for arrest shall be subject to the appeal procedure pursuant to s ections 567 to 577 of
the Code of Civil Procedure.
II. Enforcement against items
Section 285
Enforcement officer
(1) The enforcement authority shall effect enforcement against movab le items through
enforcement officers.
(2) The enforcement officer shall be empowered to conduct enforcement against the
judgement debtor and third parties by means of written or electronic order from the
enforcement authority; the order shall be presented on demand.
Section 286
Enforcement against items
(1) The enforcement officer shall attach items in the possession of the judgement debtor by
seizing them.
(2) Items other than money, valuables and securities shall be left in the possession of the
judgemen t debtor where this does not jeopardise satisfaction of the claim. Where the items
remain in the possession of the judgement debtor, attachment shall only take effect where it
is made apparent by affixing seals or some other means.
(3) The enforcement offi cer shall inform the judgement debtor of the attachment.
(4) These provisions shall also apply to the attachment of items in the possession of a third
party who is prepared to return them.
Section 287
Powers of the enforcement officer
(1) The enforcement o fficer shall have the power to search the judgement debtor’s living
quarters and business premises as well as containers where the purpose of the enforcement
so requires.
(2) The enforcement officer shall be authorised to have locked doors and containers o pened.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 107 of 140
(3) Where the enforcement officer meets with resistance, he may use force and request the
support of police officers for this purpose.
(4) Without his consent, the judgement debtor’s living quarters and business premises may
only be searched on the basis of a court order. This shall not apply where obtaining the order
would jeopardise the success of the search. The local court in whose district the search is to
be undertaken shall be responsible for the court order for the search.
(5) Where the judge ment debtor agrees to the search or an order against the judgement
debtor has been issued pursuant to subs ection (4), first sentence, above or is unnecessary
pursuant to subs ection (4), second sentence, above, persons who share custody of the
judgement deb tor’s living quarters of business premises shall tolerate the search. Undue
hardship for the joint custodians shall be avoided.
(6) The order pursuant to subs ection (4) above shall be presented during enforcement.
Section 288
Enlistment of witnesses
Where an act of enforcement is met with resistance or where neither the judgement debtor
nor a person belonging to his family or employed by him is present during an act of
enforcement in the living quarters or business premises, the enforcement officer shall en list
two adults or an officer of the municipality or police as witnesses.
Section 289
Period of enforcement
(1) An act of enforcement may be conducted at night (s ection 758a(4), second sentence, of
the Code of Civil Procedure) as well as on Sundays and off icially recognised general public
holidays only with the written or electronic permission of the enforcement authority.
(2) The permission shall be presented on demand during the act of enforcement.
Section 290
Enforcement officer’s requests and notificati ons
The requests and other notifications constituting part of the acts of enforcement shall be
issued verbally by the enforcement officer and recorded in full; where they cannot be issued
verbally, the enforcement authority shall send the person to whom th e summons or
notification is to be presented a copy of the written record.
Section 291
Record
(1) The enforcement officer shall keep a record to every act of enforcement.
(2) The record shall contain:
1. the place and time of recording,
2. the object of th e act of enforcement, with a brief description of the measures,
3. the names of the persons with whom negotiations have been held,
4. the signatures of the persons and the note that a signature was provided after
the record was read out or presented for in sp ection and after approval,
5. the signature of the enforcement officer.
(3) Where it is not possible to satisfy one of the requirements pursuant to subs ection (2)
number 4 above, the reason shall be stated.
(4) The record may also be produced electronica lly. Subs ection (2) numbers 4 and 5 above
as well as s ection 87a(4), second sentence, shall not apply.
Section 292
Averting attachment

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 108 of 140
(1) The judgement debtor may only avert attachment where he pays the due amount to the
enforcement officer or demonstrat es that he has been granted a period of grace for payment
or that the debt has expired.
(2) Subs ection (1) above shall apply accordingly where the judgement debtor presents a
ruling demonstrating the impermissibility of the attachment to be undertaken or w here he
presents post office or bank receipts demonstrating that he has paid in the amount owed.
Section 293
Liens and preferential rights of third parties
(1) A third party not in possession of the item may not raise an obj ection to the attachment of
an i tem on the basis of a lien or preferential right. He may, however, demand preferential
satisfaction from the proceeds, irrespective of whether his receivable is due or not.
(2) The ordinary court in whose district attachment has been made shall have sole
responsibility for a claim for preferential satisfaction. Where the action is brought against a
body to which the enforcement authority belongs and against the judgement debtor, they
shall be deemed to be joined parties.
Section 294
Unpicked crops
(1) Crops not yet separated from the ground may be attached as long as they have not been
seized through enforcement against immovable assets. They may not be attached earlier
than one month prior to the usual time of ripening.
(2) A creditor who has a right to sat isfaction from the real property may appeal pursuant to
section 262 against the attachment where a claim that has priority during enforcement
against the real property is not being attached.
Section 295
Exemption of items from attachment
Sections 811 to 81 2 and 813(1) to (3) of the Code of Civil Procedure as well as the
prohibitions and restrictions under other statutory provisions on the attachment of items shall
apply accordingly. The enforcement authority shall take the place of the court with
jurisdicti on over enforcement.
Section 296
Realisation
(1) Upon written order of the enforcement authority, the attached items shall be sold at public
auction. A public auction shall mean
1. the on -site auction, or
2. the universally accessible Internet auction via the platform www.zoll -auktion.de.
The auction shall normally be conducted by the enforcement officer. S ection 292 shall apply
accordingly.
(2) In the case of the attachment of money, its removal shall count as payment by the debtor.
Section 297
Suspension of realisation
The enforcement authority may temporarily suspend the realisation of attached items by
decreeing payment deadlines where immediate realisation would be unreasonable.
Section 298
Auction
(1) The attached items may not be auctioned before one week has expired since attachment
insofar as the judgement debtor has not declared that he agrees to an earlier auction or this
is necessary to avert the threat of a considerable loss in value or to avoid disproportionate
costs of lengthy storage.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 109 of 140
(2) The date and location of the auction shall be publicly announced; a general description of
the items to be auctioned shall be provided in the process. At the request of the enforcement
authority, an officer of the municipality or a police officer shall attend the auction. The first
and second sentences above shall not apply to an auction pursuant to s ection 296(1),
second sentence, number 2.
(3) S ection 1239(1), first sentence, of the Civil Code shall apply accordingly; in the case of
the on -site auction (s ecti on 296(1), second sentence, number 1), s ection 1239(2) of the Civil
Code shall be applied accordingly as well.
Section 299
Knockdown
(1) In the case of the on -site auction (s ection 296(1), second sentence, number 1), the
knock -down to the highest bidder sh ould be preceded by three calls. In the case of an
Internet auction (s ection 296(1), second sentence, number 2), the knockdown shall be
awarded to the person who has made the highest bid at the end of the auction, unless the
auction is terminated premature ly; this person shall be informed of the acceptance of the bid.
Section 156 of the Civil Code shall apply accordingly.
(2) The called item may only be handed over against payment in cash. In the case of an
Internet auction, the called item may also be hand ed over if the payment is credited to the
account of the revenue authority. Where the called item is sent, the handing over shall be
regarded as being effected upon surrender to the person designated to carry out the
dispatch.
(3) Where the highest bidder has not demanded the handing over against payment of the
sale price at the time specified in the auction rules or, in the absence of such a provision,
before the end of the auction session, the item shall be otherwise auctioned. The highest
bidder shall no t be allowed to place another bid; he shall be liable for the shortfall in
proceeds, he shall have no claim on the additional proceeds.
(4) Where the knockdown is awarded to the creditor, he shall be freed from the obligation to
pay in cash insofar as the proceeds, following the deduction of the costs of enforcement, are
to be used to satisfy his claim. Insofar as the creditor is freed from the obligation to make a
payment in cash, the amount shall be deemed to be paid from the debtor to the creditor.
Secti on 300
Lowest bid
(1) The knockdown may only be awarded for a bid of at least half of the usual sale value of
the item (lowest bid). The usual sale value and the lowest bid should be published at the
auction.
(2) Where no knockdown is awarded because a bid matching the lowest bid has not been
offered, the lien shall remain. The enforcement authority may set a new auction date at any
time or order the realisation by other means pursuant to s ection 305 of the attached item.
Where realisation by other means is ordered, subs ection (1) above shall apply accordingly.
(3) Items made of gold or silver may not be knocked down at less than their gold or silver
value. If no adequate bid for the knockdown is made, the item may be sold privately at the
order of the enfor cement authority. The sale price may not go below the gold or silver value
and half of the usual sale value.
Section 301
Ceasing the auction
(1) The auction shall be ceased as soon as the proceeds are sufficient to cover the amounts
to be recovered includi ng the costs of enforcement.
(2) Receipt of the proceeds by the auctioning official shall be deemed to be payment by the
judgement debtor unless the proceeds are deposited (s ection 308(4)). In the case of an
Internet auction, receipt of the proceeds on the account of the revenue authority shall be
deemed to be payment within the meaning of the first sentence above.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 110 of 140
Section 302
Securities
Attached securities with a stock exchange or market price shall be sold privately at the daily
price; other securities sh all be auctioned according to the general provisions.
Section 303
Registered securities
Where an attached security is registered, the enforcement authority shall be entitled to effect
the transfer of the security to the name of the purchaser or, where a b earer security that has
been transferred is involved, the re -conversion into a bearer security, and to submit the
necessary declaration in place of the judgement debtor.
Section 304
Auctioning unpicked crops
Attached crops which have not yet been separated from the ground may only be auctioned
after they have ripened. The enforcement officer shall have the crops harvested if he does
not auction them before they are picked.
Section 305
Realisation in special circumstances
Upon application by the judgement de btor or for special reasons of expediency, the
enforcement authority may order an attached item to be realised in a manner or at a place
other than that set out in the s ections above or that the item be auctioned by a person other
than the enforcement offi cer.
Section 306
Enforcement against spare aircraft parts
(1) S ection 100 of the Act Governing Rights in Aircraft shall apply to enforcement against
spare parts to which a registered lien on an aircraft extends pursuant to s ection 71 of the Act
Governing R ights in Aircraft; the enforcement officer shall take the place of the bailiff.
(2) Subs ection (1) above shall apply to enforcement against spare parts to which the right in
a foreign aircraft extends, subject to the proviso that the provisions of s ection 106(1), number
2, and 106(4) of the Act Governing Rights in Aircraft shall be taken into account.
Section 307
Subordinate attachment
(1) For the purposes of attaching items that have already been attached, it shall be sufficient
for the enforcement officer to make a declaration, of which a written record is to be made,
that he is attaching the item for the receivable to be described. The judgement debtor shall
be informed of the additional attachment.
(2) Where the first attachment is effected for another e nforcement authority or made by a
bailiff, this enforcement authority or the bailiff shall be sent a copy of the written record. The
same obligation shall apply to a bailiff who attaches items which have already been attached
on behalf of an enforcement au thority.
Section 308
Realisation in the case of multiple attachment
(1) Where the item is subject to several attachments by enforcement officers or by
enforcement officers and bailiffs, jurisdiction for the auction shall be based on the first
attachment on ly.
(2) Where a creditor conducts the auction, the auction shall be conducted for all creditors
involved.
(3) The proceeds shall be distributed according to the order of the attachments or according
to an alternative agreement of the creditors involved.
(4) Where the proceeds are insufficient to cover the receivables, and a creditor for whom the
second or a later attachment was effected demands, without the agreement of the other

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 111 of 140
creditors involved, distribution other than according to the order of the atta chments, the local
court in whose district the attachment is effected shall be notified of the situation and the
proceeds deposited. The notification shall be accompanied by the documentation relating to
the proceedings. S ections 873 to 882 of the Code of Civil Procedure shall apply to the
proceedings for the distribution.
(5) Where attachments are effected simultaneously for various creditors, the provisions of
subs ections (2) to (4) above shall apply subject to the proviso that the proceeds are
distribute d in proportion to the receivables.
III. Enforcement against receivables and other property rights
Section 309
Attachment of a monetary claim
(1) Where a monetary claim is to be attached, the enforcement authority shall issue a written
prohibition to the t hird party debtor against making payments to the judgement debtor, and
shall order the judgement debtor in writing to refrain from every disposition over the
receivable, especially the sequestration of the receivable (attachment order). This may not
be don e in electronic form.
(2) The attachment shall be effected where the attachment order is served on the third party
debtor. The attachment order to be served on the third party debtor should describe the
monetary amount to be recovered only by providing a f igure without stating the types of tax
and the periods for which it is owed. The debtor shall be informed of service.
(3) In the case of the attachment of a credit balance on the judgement debtor’s account at a
credit institution, s ections 833a and 850l of the Code of Civil Procedure shall apply
accordingly. S ection 850l of the Code of Civil Procedure shall apply subject to the proviso
that applications are to be submitted to the competent court of enforcement pursuant to
section 828(2) of the Code of Civil Procedure.
Section 310
Attachment of a receivable secured by a mortgage
(1) In order to attach a receivable for which a mortgage exists, the mortgage certificate shall
be handed over to the enforcement authority in addition to the attachment order. Surren der
shall be deemed to have been effected when the enforcement officer removes the certificate.
Where the mortgage certificate cannot be issued, the attachment shall be entered in the
Land Register; the entry shall, by reason of the attachment order, be ma de at the request of
the enforcement authority.
(2) Where the attachment order is served on the third party debtor prior to surrender of the
mortgage certificate or entry of the attachment, the attachment shall be regarded as being
effected against the thi rd party debtor upon service.
(3) These provisions shall not apply insofar as claims to ancillary payments described in
section 1159 of the Civil Code are being attached. The same shall apply for a debt -securing
mortgage in the case of s ection 1187 of the Civil Code to the attachment of the main
receivable.
Section 311
Attachment of a receivable secured by a ship mortgage or registered lien on an
aircraft
(1) The attachment of a receivable for which a ship mortgage exists shall be entered into the
ship regi ster or ship construction register.
(2) The attachment of a receivable for which a registered lien on an aircraft exists shall be
entered into the register for liens on aircraft.
(3) The attachment pursuant to subs ections (1) and (2) above shall, by reason of the
attachment order, be entered at the request of the enforcement authority. S ection 310(2)
shall apply accordingly.
(4) Subs ections (1) to (3) above shall not be applied insofar as the attachment of claims for
payments described in s ection 53 of the Act on Rights in Registered Ships and Ships under

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 112 of 140
Construction and s ection 53 of the Act Governing Rights in Aircraft are involved. The same
shall apply where, in the case of a ship mortgage, the main receivable is attached for a
receivable from a debentur e to the bearer, from a bill of exchange or on another instrument
transferred by endorsement.
(5) S ection 106(1), number 3, and 106(5) of the Act Governing Rights in Aircraft shall apply
to the attachment of receivables for which a right in a foreign aircr aft exists.
Section 312
Attachment of a receivable from endorsable instruments
Receivables from bills of exchange and other instruments which can be transferred by
endorsement shall be attached by the enforcement officer taking possession of them.
Section 313
Attachment of regular earnings
(1) A lien which is acquired through the attachment of a salary claim or the attachment of a
similar existent receivable against regular earnings shall also extend to amounts that fall due
at a later point in time.
(2) Th e attachment of an official salary shall also cover the income which the judgement
debtor draws when moved to another post, when awarded a new post or in the case of
salary increase. This shall not apply in the case of a change of employer.
(3) Where the e mployment relationship ends and the judgement debtor and third party
debtor establish such a relationship anew within nine months, the attachment shall extend to
the receivable arising from the new employment relationship.
Section 314
Sequestration order
(1) The enforcement authority shall order the sequestration of the attached receivable.
Section 309(2) shall apply accordingly.
(2) The sequestration order may be issued in combination with the attachment order.
(3) Where the order is for the sequestration of an attached account balance, held at a
financial institution, of the judgement debtor who is a natural person, s ection 835(3), second
sentence, and 835(4) of the Code of Civil Procedure shall apply accordingly.
(4) Where the order is for the sequestrati on of attached non -recurring remuneration of a
judgement debtor who is a natural person for personally rendered work or services or other
income which is not wages, s ection 835(5) of the Code of Civil Procedure shall apply
accordingly.
Section 315
Effect o f the sequestration order
(1) The sequestration order shall replace the judgement debtor’s formal declarations upon
which, under civil law, the entitlement to sequester depends. It shall also suffice in the case
of a receivable for which a mortgage, ship m ortgage, or a registered lien on an aircraft exists.
To the benefit of a third party debtor, a sequestration order unjustly issued shall be
considered legal vis -à-vis the judgement debtor until the order is cancelled and the third
party debtor is informed hereof.
(2) The judgement debtor shall be obliged to provide the information required to assert the
receivable and to return the available documents regarding the receivable. Where the
judgement debtor fails to provide information, he shall be obliged at t he enforcement
authority’s request to have this information recorded and to make a sworn statement about
the information he has provided. The enforcement authority may amend the sworn statement
of assets according to the situation. S ection 284(5), (6), (8) and (9) shall apply mutatis
mutandis. The enforcement authority may have the documents removed by the enforcement
officer or force their return pursuant to s ections 328 to 335.
(3) Where it is not possible to locate the documents, the judgement debtor sha ll, upon
request by the enforcement authority, make a sworn statement, to be recorded in writing,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 113 of 140
that he is not in possession of the documents nor does he know where these documents are.
Subs ection (2), third and fourth sentences, above shall apply accord ingly.
(4) Where a third party is in possession of the document, the enforcement authority may also
assert the judgement debtor’s claim for return.
Section 316
Third party debtor’s obligation to submit a declaration
(1) At the request of the enforcement au thority, the third party debtor shall declare the
following to the authority within two weeks, calculated from service of the attachment order:
1. whether and to what extent he recognises the receivable as justified and is
prepared to pay,
2. whether other persons have claims against the receivable and what these
claims are,
3. whether the receivable has already been attached for other creditors, and on
account of which claims,
4. whether, with regard to the account of which the credit balance has been
atta ched, the exemption of the credit balance from attachment has been ordered
pursuant to s ection 850l of the Code of Civil Procedure within the last twelve months, and
5. whether the account of which the credit balance has been attached is an
account with pr otection from attachment within the meaning of s ection 850k(7) of the
Code of Civil Procedure.
The third party debtor’s declaration regarding number 1 above shall not be considered an
acknowledgement of debt.
(2) The request to submit this declaration may be included in the attachment order. The third
party debtor shall be liable to the enforcement authority for the damage incurred from the
failure to fulfil his obligation. The third party debtor may be encouraged to submit the
declaration through a coerciv e fine; s ection 334 shall not be applied.
(3) S ections 841 to 843 of the Code of Civil Procedure shall be applied.
Section 317
Other form of realisation
Where the attached receivable is conditional or aged or the sequestration thereof difficult,
the enforc ement authority may order that it be realised by other means; s ection 315(1) shall
apply accordingly. The judgement debtor must be heard beforehand insofar as an
announcement outside the territory of application of the law or a public announcement is not
required.
Section 318
Claims for the return or transfer of items
(1) Apart from s ections 309 to 317, the provisions below shall apply to the enforcement
against claims for the return or transfer of items.
(2) When attaching a claim concerning a moveable ite m, the enforcement authority shall
order that the item be returned to the enforcement officer. The item shall be disposed of in
the same way as an attached item.
(3) When attaching a claim concerning rights to an immovable item, the enforcement
authority s hall order that the item be returned to a trustee which the local court lex rei sitae
appoints upon application by the enforcement authority. Where the claim is directed towards
the transfer of ownership, the item shall be conveyed to the trustee as repres entative of the
judgement debtor. Upon transfer of ownership to the judgement debtor, the body to which
the enforcement authority belongs shall obtain a debt -securing mortgage for the receivable.
The trustee shall approve the registration of the debt -secur ing mortgage. Enforcement

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 114 of 140
against the item returned shall, according to the provisions on enforcement, be effected
against the rights to an immovable item.
(4) Subs ection (3) above shall apply accordingly where the claim concerns a ship registered
in the s hip register, a ship under construction or floating dock registered in the ship register
or that may be registered in this register, or an aircraft registered in the aircraft register or,
following deletion in the aircraft register, is still registered in the register for liens on aircraft.
(5) The trustee shall be granted compensation upon application. The compensation may not
exceed the remuneration to be set according to the Ordinance on Official Receivers.
Section 319
Exemption of receivables from attac hment
Prohibitions and restrictions under s ections 850 to 852 of the Code of Civil Procedure as well
as other legal provisions on the attachment of receivables and claims shall apply mutatis
mutandis.
Section 320
Multiple attachment of a receivable
(1) Whe re a receivable is attached by multiple enforcement authorities or by an enforcement
authority and a court, s ections 853 to 856 of the Code of Civil Procedure and s ection 99(1),
first sentence, of the Act Governing Rights in Aircraft shall be applied accor dingly.
(2) Where there is no local court with jurisdiction pursuant to s ections 853 and 854 of the
Code of Civil Procedure, deposit shall be lodged with the local court in whose district the
enforcement authority to first have its attachment order served on the third party debtor is
located.
Section 321
Enforcement against other property rights
(1) The above provisions shall apply accordingly to enforcement against other property rights
which are not the subject of enforcement against immovable assets.
(2) Where there is no third party debtor, attachment shall be effected where the order to
refrain from every disposition over the right is served on the judgement debtor.
(3) An inalienable right, unless otherwise stipulated, shall be attachable to the extent that the
exercise of the right may be entrusted to another person.
(4) The enforcement authority may, in the case of enforcement against inalienable rights, the
exercise of which may be entrusted to another person, issue special orders and, in the case
of enforcement against usufructs in particular, order administration; in this case, attachment
shall be effected by surrendering the item to be used to the administrator insofar as it has not
already been effected through service of the attachment order.
(5) Where disposal of the right is permissible, the enforcement authority may order the
disposal.
(6) The provisions on enforcement against a receivable for which a mortgage exists shall
apply to enforcement against land charges or an annuity charge.
(7) S ect ions 858 to 863 of the Code of Civil Procedure shall apply mutatis mutandis.
4th Subchapter
Enforcement against immovable assets
Section 322
Procedure
(1) Apart from real properties, enforcement against immovable assets shall also apply to the
entitlements for which the provisions relating to real properties apply, to the ships registered
in the ship register, to the ships under construction and floating docks registered in the ship
register or which can be registered in this register, as well as to aircraf t registered in the
aircraft register or, following deletion in the aircraft register, are still registered in the register
for liens on aircraft. The provisions in force for compulsory judicial execution, namely
sections 864 to 871 of the Code of Civil Pr ocedure and the Act on Compulsory Sale by

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 115 of 140
Public Auction and Compulsory Receivership, shall be applied with respect to the
enforcement. In the case of deferral or suspension of implementation, a debt -securing
mortgage registered by means of enforcement sha ll however only then pass to the owner
pursuant to s ection 868 of the Code of Civil Procedure, and a ship’s mortgage or a
registered lien on an aircraft shall however only then expire pursuant to s ection 870a(3) of
the Code of Civil Procedure as well as s ection 99(1) of the Act Governing Rights in Aircraft,
where the cancellation of enforcement measures is ordered at the same time.
(2) S ection 171 of the Act on Compulsory Sale by Public Auction and Compulsory
Receivership shall apply to enforcement against foreign ships; s ection 106(1) and (2) of the
Act Governing Rights in Aircraft as well as s ections 171h to 171n of the Act on Compulsory
Sale by Public Auction and Compulsory Receivership shall apply to enforcement against
foreign aircraft.
(3) The enforcem ent authority shall submit the creditor’s applications necessary for
enforcement against the immovable assets. The enforcement authorities shall confirm in the
process that the legal prerequisites for enforcement exist. These matters shall not be subject
to the judgement of the enforcement court or the land registry office. Applications to register
a debt -securing mortgage, a ship’s mortgage or a registered lien on an aircraft shall be
requests within the meaning of s ection 38 of the Land Register Code and section 45 of the
Code of the Register of Ships.
(4) The enforcement authority should only apply for compulsory sale by public auction or
compulsory receivership where it is determined that the monetary amount cannot be
recovered through enforcement agains t the movable assets.
(5) Insofar as the claim to be enforced, in accordance with 10(1) number 3 of the Act on
Compulsory Sale by Public Auction and Compulsory Receivership, takes priority over the
rights to the real property, a debt -securing mortgage may be registered in the Land Register
under the condition precedent that the preferential right ceases.
Section 323
Enforcement against the legal successor
Where a debt -securing mortgage, a ship’s mortgage or a registered lien on an aircraft has
been register ed pursuant to s ection 322, a notice of compulsory tolerance shall only then be
required for the purposes of a compulsory sale by public auction on the basis of this right if,
following registration of this right, there has been a change of ownership. The first sentence
shall apply mutatis mutandis to the compulsory receivership of a debt -securing mortgage
registered pursuant to s ection 322.
5th Subchapter
Freezing injunction/arrest of the debtor
Section 324
Freezing injunction
(1) To safeguard the enforcem ent of monetary claims pursuant to s ections 249 to 323, the
revenue authority responsible for assessing tax may order movable or immovable assets to
be frozen where there are reasons to fear that recovery will otherwise be thwarted or
seriously hindered. T he authorities may also order a freezing injunction where the receivable
has not yet been determined in monetary terms or when it is provisory or aged. The freezing
injunction order shall state a monetary amount, the deposit of which will have the effect o f
suspending the freezing injunction and cancelling any freezing injunction carried out.
(2) The freezing injunction order shall be served. It shall state its reasons and be signed by
the ordering official. This may not be done in electronic form.
(3) The implementation of the freezing injunction order shall be impermissible where one
month has passed since the day on which it was signed. Implementation shall also be
permissible prior to the service on the debtor subject to the freezing injunction, however, it
shall have no effect where the order is not served within one week of implementation and
within one month of signature. S ection 169(1), third sentence, shall apply accordingly in the

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 116 of 140
case of service abroad and of public service. S ections 930 to 932 of the Code of Civil
Procedure as well as s ection 99(2) and s ection 106(1), 106(3) and 106(5) of the Act
Governing Rights in Aircraft shall apply accordingly to the implementation of the freezing
injunction; the enforcement authority shall take the place of t he court ordering the freezing
injunction and the court of enforcement, the enforcement officer shall take the place of the
bailiff. Insofar as reference is made to the provisions on attachment, the corresponding
provisions of this Code shall be applied.
Section 325
Cancellation of the freezing injunction
The freezing injunction order shall be cancelled where, after it has been issued,
circumstances come to light suggesting that the freezing injunction order may no longer be
justified.
Section 326
Arrest of the debtor
(1) Upon application by the revenue authority responsible for the tax assessment, the local
court may order the arrest of the debtor where this is necessary to secure enforcement
against the assets of the liable party. The local court in whose district the revenue authority
has its seat or where the liable party is located shall be responsible.
(2) The revenue authority responsible for the tax assessment shall state in the application
the nature and amount of the claim as well as the facts leadi ng to the arrest.
(3) S ections 128(4) and s ections 922 to 925, 927, 929, 933, 934(1), (3), and (4) of the Code
of Civil Procedure shall apply mutatis mutandis to the order, implementation and cancellation
of the arrest. S ection 911 of the Code of Civil Pro cedure shall not be applied.
(4) The provisions of the Code of Civil Procedure shall apply to service of the order.
6th Subchapter
Realisation of collateral
Section 327
Realisation of collateral
Where monetary claims enforceable through the administrative procedure (s ection 251) are
not met at maturity, the enforcement authority may satisfy the claims from the collateral it
has obtained to guarantee these claims. The collateral shall be realised according to the
provisions of this chapter. Collateral may on ly then be realised where the judgement debtor
has been informed of the intention of realising the collateral and at least one week has
passed since this has been disclosed.
Third Chapter
Enforcement other than of monetary claims
1st Subchapter
Enforcement owing to actions, tolerance or omissions
Section 328
Coercive measures
(1) An administrative act that is directed at the performance of an action or at the tolerance
or omission of an action may be enforced using coercive measures (coercive fine,
substitu tive execution, direct enforcement). S ection 336 shall apply to forcing the provision of
collateral. The authority issuing the administrative act shall be the enforcement authority.
(2) The coercive measure least detrimental to the liable party and to the public shall be
determined. The coercive measure shall be proportionate to its purpose.
Section 329
Coercive fine
No individual coercive fine may exceed 25,000 euros.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 117 of 140
Section 330
Substitutive execution
Where the obligation to perform an action which may be undertaken by another party is not
fulfilled, the enforcement authority may commission another party to undertake the action at
the liable party’s expense.
Section 331
Direct enforcement
Where the coercive fine or substitutive execution do not attain the objective or where they
are not appropriate, the revenue authority may force the liable party to perform, tolerate or
omit to do an action, or to perform the action itself.
Section 332
Giving warning of coercive measures
(1) Warning of the coercive measure shall be issued in writing. Where there are grounds to
fear that, in so doing, the forced implementation of the administrative act to be implemented
will be thwarted, it shall be sufficient to issue an oral warning of the coercive measure or
issue a warni ng by other necessary means conducive to the situation. An appropriate
deadline shall be set for the discharge of the obligation.
(2) The warning may be issued in combination with the administrative act instructing the
performance, tolerance or omission of an action. The warning shall refer to a particular
coercive measure and shall be issued separately for each obligation. W arning shall be given
of the specific amount of the coercive fine.
(3) A renewed warning for the same obligation shall be permissible only then where the
coercive measure first threatened is unsuccessful. Where the liable party is required to
tolerate or omit to do an act, it shall be permissible to give warning of a coercive measure for
each instance of an offence.
(4) Where the perform ance of an action is to be conducted by substitutive execution, the
warning shall contain a provisional estimate of the amount of the cost.
Section 333
Determining the coercive measures
Where the obligation is not fulfilled within the deadline set out in t he warning or the liable
party acts in breach of the obligation, the revenue authority shall determine the coercive
measure.
Section 334
Substitutive coercive detention
(1) Where a stipulated coercive fine cannot be recovered from a natural person, the loc al
court may, upon application by the revenue authority, order substitute coercive detention
after hearing the liable party if reference had been made to this in warning of the coercive
fine. W here the local court orders substitutive coercive detention, th e court shall issue an
arrest warrant in which the applying authority, liable party and the reason for the arrest shall
be stated.
(2) The local court shall rule at its duty -bound discretion by way of decision. The local court
in whose district the liable party is resident or, in the absence of a residence, has his habitual
abode, shall have local jurisdiction. The decision of the local court shall be subject to the
appeal procedure pursuant to s ections 567 to 577 of the Code of Civil Procedure.
(3) Substit utive coercive detention shall be for a minimum of one day and a maximum of two
weeks. The implementation of the substitutive coercive detention shall be determined
pursuant to s ections 904 to 906, 909 and 910 of the Code of Civil Procedure and
sections 17 1 to 175 of the Prison Act.
(4) Where the claim to the coercive fine becomes time -barred, the detention may no longer
be enforced.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 118 of 140
Section 335
Termination of the coercive procedure
Where the obligation is fulfilled following determination of the coercive m easure,
enforcement shall be stayed.
2nd Subchapter
Forcing provision of collateral
Section 336
Forcing provision of collateral
(1) Where the obligation to provide collateral is not fulfilled, the revenue authority may attach
eligible collateral.
(2) The a ct of forcing provision of collateral shall be preceded by a written warning.
Sections 262 to 323 shall be applied accordingly.
Fourth Chapter
Costs
Section 337
Costs of enforcement
(1) Costs (fees and expenses) shall be levied during the enforcement proce dure. The
judgement debtor shall be liable for these costs.
(2) No costs shall be levied for the dunning procedure. However, the judgement debtor shall
bear the costs incurred for a postal cash on delivery order (s ection 259, second sentence).
Section 338
Types of fees
Fees for attachment (s ection 339), confiscation (s ection 340) and realisation (s ection 341)
shall be levied as part of the enforcement proceedings.
Section 339
Attachment fee
(1) An attachment fee shall be levied for the attachment of movable items, for animals, for
crops not yet separated from the ground, for receivables and for other property rights.
(2) The fee shall be incurred:
1. as soon as the enforcement officer has undertaken steps to carry out the
enforcement order,
2. upon service o f the order through which a receivable or another property right is
to be attached.
(3) The fee shall be 20 euros.
(4) The fee shall also be levied where
1. attachment is averted by payment to the enforcement officer,
2. payment is made by some other means after the enforcement officer has been
in situ,
3. an attempt at attachment has not led to the desired result because no
attachable objects were uncovered, or
4. attachment in the cases of s ection 281(3) of this Code as well as s ections 812
and 851b(1) of the Code of Civil Procedure does not occur.
Where the attachment is averted by other means, no fee shall be levied.
Section 340
Confiscation fee

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 119 of 140
(1) A confiscation fee shall be charged for the confiscation of movable items including
documents in the cases of s ections 310, 315(2), fifth sentence, s ections 318, 321, 331 and
336. This shall also apply where the judgement debtor voluntarily pays the enforcement
officer present to undertake the enforcement.
(2) S ection 339(2) number 1 shall be applied according ly.
(3) The amount of the confiscation fee shall be 20 euros. The fee shall also be levied where
the items described in subs ection (1) above cannot be uncovered.
Section 341
Realisation fee
(1) A realisation fee shall be levied for auction by public sale a nd realisation by other means
of objects.
(2) The fee shall be incurred as soon as the enforcement officer or another agent has
undertaken steps to carry out the enforcement order.
(3) The fee shall be 40 euros.
(4) Where realisation is averted (s ection 29 6(1), fourth sentence), a fee of 20 euros shall be
levied.
Section 342
Plurality of debtors
(1) Where enforcement is undertaken against several debtors, the fees shall be levied on
each judgement debtor, even where the enforcement officer performs several acts of
enforcement on the same occasion.
(2) Where enforcement is undertaken against joint and several debtors for a joint debt on the
same occasion, the fees for attachment, confiscation and realisation shall only be levied
once. The persons described in the first sentence above shall be liable for the fees as joint
and several debtors.
Section 343
(rescinded)
Section 344
Expenses
(1) The following shall be levied as expenses:
1. clerical expenses for copies to be issued or sent via fax in a non -official
capacity; the clerical expenses for each page irrespective of the means of production
shall be 0.50 euros. W here electronically stored files are released in place of copies,
expenses shall be 2.50 euros per file,
2. fees for postal and telecommunication se rvices excluding fees for local area
telephone services,
3. fees for service by the postal service with notice of receipt; where service is
undertaken by the authority (s ection 5 of the Act on the Administrative Service of
Documents), a fee of 7.50 euros s hall be charged,
4. costs incurred through public notification,
5. the amounts to be paid to persons called upon to open doors and containers as
well as to those called upon to search the judgement debtors,
6. costs for the movement, storage and supervisio n of attached items, costs of
harvesting attached crops and costs for the storage, feeding, care and movement of
attached animals,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 120 of 140
7. amounts that, in corresponding application of the Judicial Remuneration and
Compensation Act, are to be paid to court expe rts (s ection 107) as well as amounts to be
paid to the trustees (s ection 318(5)),
7a. costs charged by a credit institution because a judgement debtor’s cheque was
not cashed,
7b. costs for transferring a registered security or for the reinstatement of a b earer
instrument,
8. other amounts to be paid to third parties because of enforcement measures,
especially amounts paid to agents and aides during substitutive execution or in the case
of direct enforcement, and other costs incurred by carrying out direct enforcement or
applying substitutive coercive detention.
(2) Taxes which the revenue authority owes because of enforcement measures shall be
levied as expenses.
(3) Where items or animals which have been attached in the case of several judgement
debtors ar e collected and realised in a single procedure, the expenses arising in this
procedure shall be divided between the judgement debtors involved. The special
circumstances involved in individual cases, above all the value, amount and weight of the
objects, s hall be taken into account in the process.
Section 345
Travel expenses and expense allowances
In the enforcement procedure, the judgement debtor shall not be required to refund the
enforcement officer’s travel expenses and the expenses which can be reimbur sed through
expense allowances.
Section 346
Incorrect treatment of items, period for assessment
(1) Costs which would not have been incurred were items treated correctly shall not be
levied.
(2) The period for the calculation of the costs and for the cance llation or amendment of the
calculation of the costs shall be one year. It shall begin upon expiration of the calendar year
in which the costs arose. An application for cancellation or amendment filed before the
expiration of the period may also be met aft er the period has expired.
Seventh Part
Out -of-court proceedings for legal remedy
First Chapter
Admissibility
Section 347
Admissibility of the objection
(1) Obj ection to administrative acts
1. in fiscal matters to which this Code applies,
2. in procedures to enforce administrative acts in matters other than those
described under number 1 above, insofar as the administrative acts are to be enforced by
revenue authorities of the Federation or revenue authorities of the Länder pursuant to the
provisions of thi s Code,
3. in public law and occupational law matters to which this Code applies pursuant
to s ection 164a of the Tax Consultancy Act,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 121 of 140
4. in other matters administered by the revenue authorities, insofar as the
provisions on out -of-court legal remedies have been or are declared applicable by law,
shall be admissible as a means of legal remedy. An obj ection shall be furthermore
admissible where it is asserted that in the matters described in the first sentence above
no ruling has been made on an application b y the appellant for the issue of an
administrative act without notification of a sufficient reason within an appropriate time
limit.
(2) Fiscal matters shall mean all matters connected to the administration of taxes including
tax refunds or matters otherwi se connected with the application of tax and excise provisions
by the revenue authorities, including measures of the revenue authorities of the Federation
to ensure adherence to prohibitions and restrictions in respect of the cross -border flow of
goods; ma tters concerning the administration of fiscal monopolies shall be deemed equal to
fiscal matters.
(3) The regulations of the Seventh Part shall not apply to criminal and administrative fine
proceedings.
Section 348
Exclusion of the objection
It shall not b e permissible to object
1. to obj ection rulings (s ection 367),
2. to failure to rule on the objection,
3. to administrative acts of the highest revenue authorities of the Federation and
the Länder, apart from where an act stipulates obj ection proceedings,
4. to rulings in matters contained in the second and sixth chapter of the second
part of the Tax Consulting Act,
5. (rescinded)
6. in the cases described in s ection 172(3).
Section 349
(rescinded)
Section 350
Gravamen
Only the party asserting to have been aggrieved by an administrative act or the omission
thereof shall be authorised to lodge an objection.
Section 351
Binding effect of other administrative acts
(1) Unless the provisions on the cancellation or amendment of administrative acts provide
otherwis e, administrative acts amending incontestable administrative acts may be
challenged only to the extent that the amendment suffices.
(2) Rulings on a basic assessment notice (s ection 171(10)) may be challenged only by
contesting this notice and not by conte sting the follow -up notice.
Section 352
Authority to object in the case of uniform determination
(1) The following may lodge an obj ection against notices on the uniform and separate
determination of the bases of taxation:
1. managing directors appointed as representatives or, where such are not
available, the agent authorised to object within the meaning of subs ection (2) below,

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 122 of 140
2. where persons in number 1 above are not available, every partner, co -owners
or persons jointly entitled against whom a notice o f determination has been issued or
would have to be issued,
3. even where persons in number 1 above are available, former partners, co –
owners or persons jointly entitled against whom a notice of determination has been
issued or would have to be issued,
4. insofar as it involves the question of who has a holding in the amount
determined and how this amount is divided between the individual participants involved,
everyone who is affected by the corresponding findings,
5. insofar as it involves a matter of per sonal concern to a participant, everyone
who is affected by the corresponding findings.
(2) The person authorised to object within the meaning of subs ection (1) number 1 above
shall be the common authorised recipient within the meaning of s ection 183(1), f irst
sentence, or s ection 6(1), first sentence, of the Ordinance of 19 December 1986 on the
separate determination of bases of taxation pursuant to s ection 180(2) of the Fiscal Code
(Federal Law Gazette I, p. 2663). Where the persons involved in the determ ination have not
appointed a common authorised recipient, the person authorised to object within the
meaning of subs ection (1) number 1 above shall be the nominal authorised recipient
pursuant to s ection 183(1), second sentence, or the authorised recipient appointed by the
revenue authority pursuant to s ection 183(1), third to fifth sentences, or pursuant to
section 6(1), third to fifth sentences, of the Ordinance on the separate determination of
bases of taxation pursuant to s ection 180(2) of the Fiscal Co de; this shall not apply to
persons involved in the determination who raise an obj ection with the revenue authority
against the authorised recipient’s authority to object. The first and second sentences above
shall only apply where the participants in the determination declaration or in the call for the
appointment of an authorised recipient have been advised of the authorised recipient’s
authority to object.
Section 353
Legal successor’s authority to object
Where a notice of determination, a basic real pro perty tax assessment notice or an
apportionment and allocation notice with respect to a basic real property tax amount has an
impact on the legal successor without him having been informed of this (s ection 182(2),
section 184(1), fourth sentence, s ections 185 and 190), the legal successor may lodge an
obj ection only within the relevant period for obj ection applicable to the legal predecessor.
Section 354
Waiver of objection
(1) The submission of an obj ection may be waived following issue of the administrati ve act.
The waiver may also be made when submitting a self -assessed tax return in the event that
the tax assessed does not deviate from that in the self -assessed tax return. The waiver shall
render obj ection impermissible.
(1a) Insofar as bases for taxatio n may be of significance for a mutual agreement procedure
or arbitration pursuant to an agreement within the meaning of s ection 2, entitlement to lodge
an obj ection may be waived. The basis of taxation to which the waiver shall apply shall be
described pre cisely.
(2) The waiver shall be made to the revenue authority responsible in writing or declared for
record; it may not contain any further declarations. Where the invalidity of the waiver is
subsequently asserted, s ection 110(3) shall apply mutatis mutand is.
Second Chapter
Procedural rules

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 123 of 140
Section 355
Period for objection
(1) Obj ection pursuant to s ection 347(1), first sentence, shall be lodged within one month of
notice of the administrative act. An obj ection against a self -assessed tax return shall be
lodged within one month of the revenue authority receiving the self -assessed tax return, in
the cases of s ection 168, second sentence, within one month of disclosure of the agreement.
(2) No time period shall apply to the obj ection pursuant to s ection 347(1) , second sentence.
Section 356
Advice on applicable legal remedies
(1) Where an administrative act is issued in writing or in electronic form, the time period for
lodging an obj ection shall only begin once the participant has been advised in the manner
use d for the administrative act about the obj ection and the revenue authority where it must
be lodged, the seat of the revenue authority and the period to be observed.
(2) Where the advice has not been imparted or have been imparted incorrectly, the
submissio n of an obj ection shall only be permissible within one year of notice of the
administrative act, unless the submission before the end of the year was not possible on
account of force majeure or advice was provided in writing or electronically that there wa s no
case for objection. S ection 110(2) shall apply mutatis mutandis for the instance of force
majeure.
Section 357
Submission of the objection
(1) The obj ection must be lodged in writing or declared for record. It shall be sufficient where
the appellant c an be identified from the document. Submission via telegram shall be
permissible. Incorrect designation of the obj ection shall not adversely affect it.
(2) The obj ection shall be lodged with the authority whose administrative act is being
disputed or to wh ich the application for an administrative act to be issued was submitted. An
obj ection against the determination of bases of taxation or against the assessment of a basic
impersonal tax amount may also be entered with the authority responsible for issuing the tax
assessment notice. An obj ection directed against an administrative act which the authority
issued for the revenue authority responsible on the basis of a legal provision may also be
entered with the revenue authority responsible. Lodging a written obj ection with another
authority shall have no adverse effects where the obj ection is transmitted within the period
for obj ection set by one of the authorities to which it may be submitted pursuant to the first to
third sentences above.
(3) The administrat ive act against which the obj ection is directed should be stated when
submitting the objection. The extent to which an administrative act is being challenged and
its cancellation applied for should be indicated. Furthermore, both the facts justifying the
objection and the evidence should be cited.
Section 358
Verification of the requirements for permissibility
The revenue authority appointed to rule on the obj ection shall verify whether the obj ection is
permissible and, in particular, has been submitted in the prescribed form and within the
prescribed deadline. W here any one of these requirements is not meet, the obj ection shall
be rejected as impermissible.
Section 359
Participants
The participants in the procedure shall be:
1. whoever has submitted the obj ection (appellant),
2. whoever has been enlisted in the procedure.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 124 of 140
Section 360
Enlistment of others in the proceedings
(1) The revenue authority appointed to rule on the obj ection may enlist other persons, ex
officio or upon application, whose legal intere sts, pursuant to the tax laws, will be affected by
the ruling, including, in particular, those who, pursuant to the tax laws, are also liable in
addition to the taxpayer. Prior to the enlistment of others, the person who submitted the
obj ection shall be he ard.
(2) Where a fiscal charge is administered for another entity entitled to the fiscal charge, this
entity may not be enlisted merely because its interests, as the entity entitled to the fiscal
charge, will be affected by the ruling.
(3) Where third part ies are involved in the contentious legal relationship in such a way that a
ruling can only be taken in a uniform manner in relation to them as well, they shall be
enlisted in the proceedings. This shall not apply for persons jointly entitled who, pursuant to
section 352, are not authorised to submit an objection.
(4) Whoever is enlisted in the proceedings may assert the same rights as the person who
has submitted the objection.
(5) Where pursuant to subs ection (3) above more than 50 persons are candidates for
enlistment, the revenue authority may decree that only those persons who apply for
enlistment within a particular period shall be enlisted. Individual notification of the decree
may be waived where the decree is published in the electronic Federal Gaze tte and is
furthermore published in the daily newspapers which are disseminated in the area in which
the ruling is likely to have an effect. The deadline shall be at least three months from the
date of publication in the electronic Federal Gazette. The pub lication in the daily newspapers
shall state the date upon which the deadline expires. S ection 110 shall apply accordingly
with respect to restitutio in integrum where a time limit has not been complied with. The
revenue authority should enlist persons who will be evidently affected to a particular degree
by the ruling including, even without an application being made for such.
Section 361
Suspension of implementation
(1) Subject to the provisions of subs ection (4) below, the submission of an obj ection shal l not
have the effect of blocking implementation of the disputed administrative act, especially
where the levy of a fiscal charge is concerned. The same shall apply when contesting basic
assessment notices for the follow -up notices based thereon.
(2) The r evenue authority which issued the disputed administrative act may suspend
implementation in whole or in part; s ection 367(1), second sentence, shall apply mutatis
mutandis. Upon application, suspension should be granted where serious doubts exist as to
the legality of the administrative act being disputed or where implementation would result for
the person affected in unreasonable hardship not required by overriding public interests.
Where the administrative act has already been implemented, the suspension of
implementation shall be replaced by the cancellation of the implementation. In the case of
tax assessment notices, the suspension and the cancellation of implementation shall be
limited to the assessed tax reduced by the tax -deductible amounts to be cre dited, by the
corporation tax to be credited and by the prepayments assessed; this shall not apply where
the suspension or the cancellation of implementation appears to be necessary in order to
prevent substantial disadvantages. Suspension may be made depe ndent upon provision of
collateral.
(3) Insofar as the implementation of a basic assessment notice is suspended, the
implementation of a follow -up notice shall also be suspended. The issue of a follow -up notice
shall remain permissible. In the case of the suspension of a follow -up notice, a ruling shall be
made on the provision of collateral, unless the provision of collateral was specifically
excluded when suspending the implementation of the basic assessment notice.
(4) The submission of an obj ection agai nst the prohibition of the operation of a trade or
business or the exercise of an occupation or profession shall have the effect of blocking

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 125 of 140
implementation of the disputed administrative act. The revenue authority which issued the
administrative act may el iminate the blocking effect in whole or in part by specific order
where the revenue authority deems this necessary in the public interest; the revenue
authority shall substantiate the argument for the public interest in writing. S ection 367(1),
second sent ence, shall apply mutatis mutandis.
(5) Rej ection of the suspension of the implementation may only be referred to the court
pursuant to s ection 69(3) and (5), third sentence, of Code of Procedure for Fiscal Courts.
Section 362
Withdrawal of the objection
(1) An obj ection may be withdrawn up until the point at which notification is given of the
ruling. S ection 357(1) and (2) shall apply mutatis mutandis.
(1a) Insofar as bases of taxation may be of significance for a mutual agreement procedure or
arbitration pursuant to an agreement within the meaning of s ection 2, the obj ection against
this may be withdrawn subject to limitations. S ection 354(1a), second sentence, shall apply
accordingly.
(2) The withdrawal shall result in the forfeiture of the obj ection subm itted. W here the
invalidity of the withdrawal is subsequently asserted, s ection 110(3) shall apply mutatis
mutandis.
Section 363
Suspending and adjourning the proceedings
(1) Where the ruling depends in whole or in part on the existence or non -existence of a legal
relationship which is the object of a pending legal dispute or which must be determined by a
court or an administrative authority, the revenue authority may suspend the ruling until the
other legal dispute is resolved or until the court or adminis trative authority has ruled.
(2) The revenue authority may, with the consent of the appellant, adjourn the proceedings
where this appears appropriate on important grounds. Where proceedings are pending at the
European Court of Justice, the Federal Constitu tional Court or a highest federal court with
respect to the constitutionality of a legal norm or to a legal question, and where the
obj ection is based upon this, the appeals proceedings shall be adjourned to this extent; this
shall not apply insofar as, pu rsuant to s ection 165(1), second sentence, number 3 or 4, the
tax has been provisionally assessed. W ith the consent of the highest revenue authority, it
may be decreed, through a general order to be publicly disclosed, for groups of similar cases
that appe als procedures are also adjourned to this extent in cases other than those
contained in the first and second sentences above. The appeals procedure shall be resumed
where the appellant lodges an application for such or the revenue authority informs the
app ellant of such.
(3) Where an application for the suspension or adjournment of proceedings is rejected or the
suspension or adjournment of proceedings revoked, the unlawfulness of the rej ection or
revocation may only be asserted by court action against the obj ection ruling.
Section 364
Disclosure of the taxation documents
The participants shall, insofar as this has not yet occurred, be informed of the taxation
documents upon application or, where the grounds of the obj ection give cause for such, ex
officio.
Section 364a
Discussion of the current and legal status
(1) Upon application by the appellant, the revenue authority should discuss the current and
legal status before issuing an obj ection ruling. Further participants may be invited where the
revenue autho rity believes this to be expedient. The revenue authority may invite the
appellant, even without his having applied for such, and other participants to a discussion.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 126 of 140
(2) The revenue authority may elect not to hold a discussion with more than ten participan ts.
Where the participants appoint a common representative within an appropriate deadline set
by the revenue authority, the current and legal status should be discussed with him.
(3) The participants may elect to be represented by an authorised representat ive. They may
also be invited to the discussion in person where the revenue authority believes this to be
expedient.
(4) Attendance may not be forced pursuant to s ection 328.
Section 364b
Determination of deadlines
(1) The revenue authority may set deadlin es for the appellant
1. to state the facts through the consideration or non -consideration of which he
feels aggrieved,
2. to clarify specific matters requiring clarification,
3. to specify evidence or to present documents insofar he is obliged to do this.
(2) Declarations and evidence provided only after the deadline set pursuant to subs ection (1)
above has expired shall not be taken into consideration. S ection 367(2), second sentence,
shall remain unaffected. S ection 110 shall apply accordingly where the d eadline is
exceeded.
(3) Upon setting the deadline, the appellant shall be advised of the legal consequences
pursuant to subs ection (2) above.
Section 365
Application of procedural rules
(1) The provisions applying to the issue of the disputed or desired a dministrative act shall
furthermore apply mutatis mutandis to the proceedings regarding the objection.
(2) In the cases described in s ection 93(5), 96(7), second sentence, and s ections 98 to 100,
the participants and their authorised representatives and ad visors (s ection 80) shall be given
the opportunity to participate in the taking of evidence.
(3) Where the contested administrative act is amended or replaced, the new administrative
act shall become the subject -matter of the appeals procedure. The first s entence above shall
apply accordingly where
1. an administrative act is corrected pursuant to s ection 129, or
2. an administrative act replaces a disputed, invalid administrative act.
Section 366
Form, content and publication of the obj ection ruling
The ob jection ruling shall be issued in writing, shall be substantiated, shall contain advice on
applicable legal remedies and shall be disclosed to the participants.
Section 367
Obj ection ruling
(1) The revenue authority which has issued the administrative act shall take a decision on
the obj ection by means of an obj ection ruling. Where another revenue authority has
subsequently become responsible for a tax case, this revenue authority shall make the
ruling; s ection 26, second sentence, shall remain unaffected.
(2) The revenue authority ruling on the obj ection shall re -examine the matter in its entirety.
The administrative act may also be amended to the detriment of the appellant where he has
been instructed of the possibility of a detrimental ruling stating the reasons and he has been
given the opportunity to comment on this. An obj ection ruling shall only be required to the
extent that the revenue authority does not remedy the objection.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 127 of 140
(2a) The revenue authority may rule on parts of the obj ection in advance wh ere this is
expedient. In this ruling, the revenue authority shall determine which parts are not to become
final and incontestable.
(2b) Pending obj ections which affect a crucial legal issue ruled on by the Court of Justice of
the European Communities, the Federal Constitutional Court, or the Federal Fiscal Court
and which cannot be remedied before these courts following the outcome of the proceedings
may only be withdrawn by way of general order. The highest revenue authority shall have
subject -matter juri sdiction over the issue of the general order. The general order shall be
published in the Federal Tax Gazette and on the website of the Federal Ministry of Finance.
The general order shall be deemed as having been disclosed on the day following
publication of the Federal Tax Gazette in which it is published. Notwithstanding s ection 47(1)
of the Code of Procedure for Fiscal Courts, the deadline for court action shall end after the
expiry of one year following the day of publication. S ection 63(1) number 1 of the Code of
Procedure for Fiscal Courts shall also apply insofar as an obj ection is rejected by a general
order pursuant to the first sentence above.
(3) Where the obj ection is directed against an administrative act which an authority issued
for the reven ue authority responsible on the basis of a legal provision, the revenue authority
responsible shall rule on the objection. The authority acting for the revenue authority
responsible shall also be authorised to remedy the objection.
Section 368
(rescinded)
Eighth Part
Provisions relating to crimes and administrative fines, criminal and administrative
fine proceedings
First Chapter
Provisions on crimes
Section 369
Tax crimes
(1) The following shall be tax crimes (customs crimes):
1. acts which are punishable under the tax laws,
2. the illegal import, export or transit of goods,
3. the forging of revenue stamps or acts preparatory thereto, insofar as the act
relates to tax stamps,
4. aiding and abetting a person who has committed an act under numbers 1 to 3
abo ve.
(2) Tax crimes shall be subject to the general provisions of criminal law unless otherwise
provided for by the tax laws’ provisions on crime.
Section 370
Tax evasion
(1) A penalty of up to five years’ imprisonment or a monetary fine shall be imposed on
whoever
1. furnishes the revenue authorities or other authorities with incorrect or
incomplete particulars concerning matters of substantial significance for taxation,
2. fails to inform the revenue authorities of facts of substantial significance for
tax ation when obliged to do so, or

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 128 of 140
3. fails to use revenue stamps or revenue stamping machines when obliged to do
so
and as a result understates taxes or derives unwarranted tax advantages for himself or
for another person.
(2) Attempted perpetration shall be punishable.
(3) In particularly serious cases, a penalty of between six months and ten years’
imprisonment shall be imposed. A case shall generally be deemed to be particularly serious
where the perpetrator
1. deliberately understates taxes on a large sca le or derives unwarranted tax
advantages,
2. abuses his authority or position as a public official,
3. solicits the assistance of a public official who abuses his authority or position,
4. repeatedly understates taxes or derives unwarranted tax advantages by using
falsified or forged documents, or
5. as a member of a group formed for the purpose of repeatedly committing acts
pursuant to subs ection (1) above, understates value -added taxes or excise duties or
derives unwarranted VAT or excise duty advantages.
(4) Taxes shall be deemed to have been understated in particular where they are not
assessed at all, in full or in time; this shall also apply even where the tax has been assessed
provisionally or assessed subject to re -examination or where a self -assesse d tax return is
deemed to be equal to a tax assessment subject to re -examination. Tax advantages shall
also include tax rebates; unwarranted tax advantages shall be deemed derived to the extent
that these are wrongfully granted or retained. The conditions of the first and second
sentences above shall also be fulfilled where the tax to which the act relates could have
been reduced for other reasons or the tax advantage could have been claimed for other
reasons.
(5) The act may also be committed in relation t o goods whose importation, exportation or
transit are banned.
(6) Subsections (1) to (5) above shall apply even where the act relates to import or export
duties which are administered by another Member State of the European Union or to which a
Member State of the European Free Trade Association or a country associated therewith is
entitled. The same shall apply where the act relates to value -added taxes or harmonised
excise duties on goods designated in Article 1(1) of Council Directive 2008/11/EC of 16
Dec ember 2008 concerning the general arrangements for excise duty and repealing
Directive 92/12/EEC (OJ L 9 of 14 January 2009, p. 12) which are administered by another
Member State of the European Union.
(7) Irrespective of the lex loci delicti, the provisio ns of subs ections (1) to (6) above shall also
apply to acts committed outside the territory of application of this Code.
Section 370a
(rescinded)
Section 371
Voluntary disclosure of tax evasion
(1) Whoever, in relation all tax crimes for a type of tax that have not become time -barred,
fully corrects the incorrect particulars held by the revenue authority, supplements the
incomplete particulars held by the revenue authority or furnishes the revenue authority with
the previously omitted particulars shall not be punished pursuant to section 370 on account
of these tax crimes.
(2) Exemption from punishment shall not apply where

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 129 of 140
1. in the case of voluntarily disclosed tax crimes that have not become time -barred
and before the correction, supplementation or subseq uent furnishing of omitted
particulars
a) the perpetrator or his representative has been notified of an audit order
pursuant to section 196, or
b) the perpetrator or his representative has been notified of the initiation of
criminal proceedings or proceedi ngs for the imposition of administrative fines, or
c) a public official at the revenue authority has already appeared for the
purpose of carrying out a tax audit or of investigating a tax crime or a tax offence,
or
2. the act had been already fully or part ially detected at the time of the correction,
supplementation or subsequent furnishing of omitted particulars and the perpetrator was
aware of this or should have expected this upon due consideration of the facts of the
case, or
3. the tax understated purs uant to section 370(1) or the unwarranted tax
advantage derived by someone for himself or for another person does not exceed the
amount of 50,000 euros per act.
(3) Where tax has already been understated or tax advantages have already been derived,
the per son involved in this act shall be exempt from punishment only if he pays the taxes
from this act which were evaded to his benefit within the reasonable period of time allowed to
him for that purpose.
(4) Where the notification provided for in section 153 i s punctually and duly filed, a third party
who omitted to make the statements referred to in section 153 or who made such statements
incorrectly or incompletely shall not be prosecuted unless he or his representative was
previously notified of the initiati on of criminal or administrative fine proceedings resulting
from the act. Subsection (3) above shall apply accordingly where the third party has acted to
his own benefit.
Section 372
Illegal import, export, or transit of goods
(1) Whoever imports, exports or transports goods in violation of a prohibition shall be
deemed to have illegally imported, exported or transported goods.
(2) The perpetrator shall be punished pursuant to s ection 370(1) and (2) where the act is not
subject to punishment or a monetary f ine as a violation of import, export, or transit
prohibitions pursuant to other provisions.
Section 373
Professional, violent or organised smuggling
(1) Whoever evades import or export duties on a commercial basis or who illegally imports,
exports or trans ports goods on a commercial basis in contravention of monopoly regulations
shall be subject to imprisonment of from six months up to 10 years. In less serious cases,
the penalty shall be imprisonment for up to five years or a monetary fine.
(2) Punishment shall also be imposed on whoever
1. evades import or export duties or illegally imports, exports or transports goods,
and in committing these acts he or another participant carries a firearm,
2. evades import or export duties or illegally imports, exports or transports goods,
and in committing these acts he or another participant carries with him a weapon or some
other tool or means to prevent or overcome the resistance of another person by violence
or by the threat of violence, or

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 130 of 140
3. as a member of a group formed for the purpose of repeatedly evading import or
export duties or of illegally importing, exporting or transporting goods, commits such an
act.
(3) Attempted perpetration shall be punishable.
(4) S ection 370(6), first sentence, and (7) shall apply a ccordingly.
Section 374
Receiving, holding or selling goods obtained by tax evasion
(1) Whoever purchases or otherwise acquires for himself or for a third party, or sells, or helps
to sell with the aim or enriching himself or a third party products or good s in conn ection with
which excise duties or import duties and export duties within the meaning of Article 4
numbers 10 and 11 of the Customs Code have been evaded or the illegal import, export or
transit of goods pursuant to s ection 372(2) and s ection 373 has been committed, shall be
punishable by imprisonment for up to five years or a monetary fine.
(2) Where the perpetrator acts commercially or as a member of a group formed for the
purpose of repeatedly committing crimes pursuant to subs ection (1) above, a penalty of
between six months and ten year’s imprisonment shall be imposed. In less serious cases,
the penalty shall be imprisonment for up to five years or a monetary fine.
(3) Attempted perpetration shall be punishable.
(4) S ection 370(6), first senten ce, and (7) shall apply accordingly.
Section 375
Incidental consequences
(1) In addition to at least one year’s imprisonment for
1. tax evasion,
2. illegally importing, exporting or transporting goods pursuant to s ection 372(2),
section 373,
3. receiving, holding or selling goods obtained by tax evasion, or
4. aiding and abetting a person who has committed an act under numbers 1 to 3
above,
the court may disqualify someone from holding public office and acquiring rights from public
elections (section 45(2) of the Criminal Code).
(2) Where tax has been evaded, goods illegally imported, exported or transported pursuant
to s ection 372(2), s ection 373 or goods acquired by tax evasion received, held or sold,
1. the produce, goods and other items to which the evas ion of excise duties or
import and export duties within the meaning or Article 4 numbers 10 and 11 of the
Customs Code, the illegal import, export or transport of goods, or the receiving, holding or
selling of goods obtained by tax evasion, relate, and
2. the means of transport used in the act,
may be confiscated. S ection 74a of the Criminal Code shall be applied.
Section 376
Limitation period for prosecution
(1) In the cases of particularly serious tax evasion referred to in s ection 370(3), second
sentence , numbers 1 to 5, the limitation period shall by 10 years.
(2) The limitation period for the prosecution of a tax crime shall also be interrupted where the
accused is notified of the initiation of proceedings for the imposition of administrative fines or
this notification is ordered.
Second Chapter
Provisions on administrative fines

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 131 of 140
Section 377
Tax offences
(1) Tax offences (customs offences) shall be offences which under the tax laws may be
punished by monetary fine.
(2) The provisions of the first part of the Act on Administrative Offences shall apply for tax
offences insofar as the tax law provisions on administrative fines do not provide otherwise.
Section 378
Understatement of tax through gross negligence
(1) Whoever as a taxpayer or a person looking af ter the affairs of a taxpayer commits one of
the acts described in s ection 370(1) through gross negligence shall be deemed to have
committed an offence. S ection 370(4) to (7) shall apply accordingly.
(2) The offence may be punished with a monetary fine of up to fifty thousand euros.
(3) A monetary fine shall not be set insofar as the perpetrator corrects the incorrect
particulars held by the revenue authority, supplements the incorrect particulars held by the
revenue authority or furnishes the revenue autho rity with the previously omitted particulars
before he or his representative has been notified of the initiation of criminal or administrative
fine proceedings resulting from the act. Section 371(3) and (4) shall apply accordingly.
Section 379
General mino r tax fraud
(1) An offence shall be deemed to be committed by whoever intentionally or through gross
negligence
1. fails to comply at all, in full or in time with the obligation to disclose pursuant to
section 138(2),
1a. contrary to s ection 144(1) or (2), first sentence, in conjunction with
subs ection (5) respectively, does not, not correctly or not fully prepare a record,
2. places documents into circulation for a fee or
3. fails to record or to have recorded, or incorrectly records or has recorded,
trans actions or business activity which according to the law have to be entered in the
accounts or otherwise recorded
and in so doing enables taxes to be understated or unwarranted tax advantages to be
derived. The first sentence, number 1 above shall also appl y where import or export duties
which are administered by another Member State of the European Communities or to which
a State, which on the basis of an association agreement or preferential agreement grants
preferential treatment to goods deriving from th e European Communities, is entitled can be
understated; s ection 370(7) shall apply accordingly. The same shall apply where the act
relates to value -added taxes which are administered by another Member State of the
European Communities.
(2) An offence shall be deemed to be committed by whoever intentionally or through gross
negligence
1. fails to comply at all, in full or in time with the obligation to disclose pursuant to
section 138(2),
2. breaches the obligation regarding the authenticity of accounts purs uant to
section 154(1).
(3) An offence shall be deemed to be committed by whoever intentionally or through
negligence contravenes a condition pursuant to s ection 120(2) number 4 to which an
administrative act has been attached for the purposes of special f iscal supervision
(sections 209 to 217).

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 132 of 140
(4) The offence may be punished with a monetary fine of up to five thousand euros where
the action cannot be punished pursuant to 378.
Section 380
Endangerment of withholding taxes
(1) An offence shall be deemed to be committed by whoever intentionally or through gross
negligence fails to comply at all, in full or on time his obligation to withhold or give to revenue
authorities tax -deductible amounts which are due.
(2) The offence may be punished with a monetary fin e of up to twenty -five thousand euros
where the action cannot be punished pursuant to s ection 378.
Section 381
Endangerment of excise tax
(1) An offence shall be deemed to be committed by whoever intentionally or through gross
negligence contravenes the pr ovisions of the excise laws or the ordinances issued in
conn ection therewith
1. on the obligations regarding the preparation, safeguarding or subsequent
auditing of taxation,
2. on the packaging and labelling of products subject to excise duty or goods
con taining such products, or on the restrictions on trade or use for such products or
goods, or
3. on the use of untaxed goods in free ports
insofar as the excise laws or the ordinances issued in conn ection therewith refer to this
provision on fines for a par ticular element.
(2) The offence may be punished with a monetary fine of up to five thousand euros where
the action cannot be punished pursuant to s ection 378.
Section 382
Endangerment of import and export duties
(1) An offence shall be deemed to be commit ted by whoever, as the liable party or the
person looking after the affairs of a liable party, intentionally or through negligence
contravenes customs regulations, the ordinances issued in conn ection therewith or the
Council Regulations or the Regulations of the Commission of the European Communities
which apply
1. to the recording by customs of the movement of goods across the frontiers of
the customs territory of the European Communities as well as across the free zone
borders,
2. to the placement of good s under a customs procedure and the implementation
thereof or to obtaining another customs -approved treatment or use of goods,
3. to the free zones, areas in proximity to the border as well as the territories
subject to border surveillance
insofar as the c ustoms regulations, the ordinances issued in conn ection therewith or issued
on the basis of subs ection (4) below refer to this provision on fines for a particular element.
(2) Subs ection (1) above shall also be applied where the customs regulations and the
ordinances issued in conn ection therewith apply mutatis mutandis to excise duties.
(3) The offence may be punished with a monetary fine of up to five thousand euros where
the action cannot be punished pursuant to s ection 378.
(4) The Federal Ministry of F inance may, by means of ordinances, specify the elements of
the regulations of the Council of the European Union or of the Commission of the European
Communities which may be punished pursuant to subs ections (1) to (3) above as offences

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 133 of 140
subject to a moneta ry fine insofar as this is necessary for the implementation of these laws
and the elements concern obligations regarding the provision, exhibition, storage or
treatment of goods, the submission of declarations or notifications, the keeping of written
recor ds as well as the completion or presentation of customs documents or the inclusion of
notes in such documents.
Section 383
Unauthorised acquisition of claims to a tax refund and rebate
(1) An offence shall be deemed to be committed by whoever, in breach o f s ection 46(4), first
sentence, acquires claims to refunds or rebates.
(2) The offence may be punished with a monetary fine of up to fifty thousand euros.
Section 383a
Illicit use of the identifying tag pursuant to s ection 139a
(1) An offence shall be dee med to be committed by whoever, as a non -public entity,
intentionally or through gross negligence in breach of s ection 139b(2), second sentence,
number 1, and s ection 139c(2), second sentence, collects or uses the identification number
pursuant to s ection 139b or the business identification number pursuant to s ection 139c(3)
for purposes other than those permitted, or who, in breach of s ection 139b(2), second
sentence, number 2, organises his files using the identification number or makes his files
accessib le for purposes other than those permitted.
(2) The offence may be punished with a monetary fine of up to ten thousand euros.
Section 384
Limitation period for prosecution
The period of limitation for the prosecution of tax offences pursuant to s ections 37 8 to 380
shall become time -barred after five years.
Third Chapter
Criminal proceedings
1st Subchapter
General provisions
Section 385
Validity of procedural rules
(1) Unless otherwise specified in the following provisions, criminal proceedings for tax crime s
shall be governed by the general laws on criminal proceedings, namely the Code of Criminal
Procedure, the Act on the Constitution of Courts and the Juvenile Courts Act.
(2) With the exception of s ection 386(2) as well as s ections 399 to 401, the provisio ns of this
chapter applicable to tax crimes shall be applied accordingly where there is suspicion of a
crime aimed at obtaining pecuniary benefits by misrepresenting facts of significance for
taxation to the revenue authority or another authority and no la w regarding tax crimes is
infringed.
Section 386
Jurisdiction of the revenue authority in the case of tax crimes
(1) Where a tax crime is suspected, the revenue authority shall investigate the facts of the
case. The revenue authority within the meaning of this chapter shall be the main customs
office, the tax office, the Federal Central Tax Office and the child benefits disbursement
office.
(2) The revenue authority shall conduct the investigation independently within the limits laid
down in s ection 399(1) and the s ections 400 and 401 where the act
1. is exclusively a tax crime, or

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 134 of 140
2. simultaneously contravenes other criminal laws and their contravention concern
church taxes or other public -law levies linked to bases of assessment, basic impersonal
tax amoun ts or tax amounts.
(3) Subs ection (2) above shall not apply as soon as an arrest warrant or a remand to a
psychiatric hospital centre is issued against the accused for the act.
(4) The revenue authority may hand the criminal matter over to the public prose cutor’s office
at any time. The public prosecutor’s office may take over the criminal matter at any time. In
both cases, the public prosecutor’s office may, with the mutual agreement of the revenue
authority, return the criminal matter to the revenue autho rity.
Section 387
Revenue authority with subject -matter jurisdiction
(1) The revenue authority administering the tax concerned shall have subject -matter
jurisdiction.
(2) Jurisdiction pursuant to subs ection (1) above may be transferred by way of ordinance to
one revenue authority for an area covered by several revenue authorities, insofar as this
appears appropriate considering the economic situation or transport infrastructure, the
structure of the administrative authorities and other local needs. The ordi nance shall be
issued by the government of a Land to the extent that the revenue authority is an authority of
the Land, and in all other cases by the Federal Ministry of Finance. An ordinance issued by
the Federal Ministry of Finance shall not require the consent of the Bundesrat. The
government of a Land may delegate the powers to the highest authority of the Land
responsible for the revenue administration.
Section 388
Revenue authority with local jurisdiction
(1) The revenue authority with local jurisdict ion shall be the revenue authority
1. in whose district the tax crime was committed or detected,
2. which is responsible for the fiscal matters at the time of initiating the criminal
proceedings, or
3. in whose district the accused has his residence at the time of initiating the
criminal proceedings.
(2) Where the residence of the accused changes following the initiation of criminal
proceedings, the revenue authority in whose district the new residence is located shall also
have local jurisdiction. The same shall apply where the revenue authority’s jurisdiction for
fiscal matters changes.
(3) Where the accused does not have his residence within the territory of application of this
Code, jurisdiction shall be determined by the habitual abode as well.
Section 389
Related criminal matters
In the case of related criminal matters, which would, pursuant to s ection 388, individually fall
within the jurisdiction of several revenue authorities, each of these revenue authorities shall
be competent. S ection 3 of the Cod e of Civil Procedure shall apply accordingly.
Section 390
Multiple jurisdiction
(1) Where, pursuant to s ections 387 to 389, several revenue authorities have jurisdiction, the
revenue authority which first initiated criminal proceedings regarding the act sh all be given
precedence.
(2) At the request of this revenue authority, another revenue authority responsible shall take
over the criminal matter where this appears expedient for the investigations. In cases of
doubt, the authority to which the requested re venue authority is subordinate shall decide.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 135 of 140
Section 391
Competent court
(1) Where the local court has subject -matter jurisdiction, the local court in whose district the
Land court has its seat shall have local jurisdiction. Irrespective of a wider provisi on pursuant
to s ection 58(1) of the Act on the Constitution of Courts, this shall apply in preparatory
proceedings only with regard to the consent of the court pursuant to s ection 153(1) and
section 153a(1) of the Code of Criminal Procedure.
(2) Notwithsta nding subs ection (1), first sentence, above, the government of a Land may, by
way of ordinance, determine jurisdiction insofar as this appears appropriate considering the
economic situation or transport infrastructure, the structure of the administrative a uthorities
and other local needs. The government of a Land may transfer this power to the justice
authorities of the Land.
(3) Criminal proceedings for tax crimes should be allocated to a particular department at a
local court.
(4) Subs ections (1) to (3) a bove shall also apply where the proceedings do not only concern
tax crimes; they shall apply, however, neither where the same action represents a crime
pursuant to the Narcotics Act, nor to tax crimes which concern motor vehicle tax.
Section 392
Defence
(1) Notwithstanding s ection 138(1) of the Code of Criminal Procedure, tax consultants, tax
representatives, auditors and certified accountants may also be appointed to the defence
insofar as the revenue authority conducts the criminal proceedings independent ly; in all other
cases, they may lead the defence only together with lawyer or teacher of law at a German
institution of higher education within the meaning of the Framework Act for Higher Education
who is qualified to exer cise the functions of a judge.
(2) S ection 138(2) of the Code of Criminal Procedure shall remain unaffected.
Section 393
Relationship between criminal proceedings and the taxation procedure
(1) The rights and obligations of the taxpayers and of the revenue authority in the taxation
proced ure and in criminal proceedings shall be determined by the regulations which apply to
the proceedings in the particular case. In the taxation procedure, however, coercive
measures (s ection 328) against the taxpayer shall be impermissible where this would f orce
him to incriminate himself in a tax crime or tax offence which he committed. This shall
invariably apply where criminal proceedings have been initiated against him for such an act.
The taxpayer shall be advised of this as necessary.
(2) Where during c riminal proceedings the public prosecutor’s office or the court learns from
the tax records of facts or evidence which the taxpayer, in compliance with his obligations
under tax law, revealed to the revenue authority before the initiation of criminal proce edings
or in ignorance of the initiation of criminal proceedings, this knowledge may not be used
against him for the prosecution of an act that is not a tax crime. This shall not apply to crimes
for the prosecution of which there is a compelling public int erest (s ection 30(4) number 5).
(3) Findings which the revenue authority or the public prosecutor’s office lawfully gained in
the course of criminal investigations may be used in the taxation procedure. This shall also
apply with respect to findings subjec t to the privacy of correspondence, posts and
telecommunications to the extent that the revenue authority legally obtained them within in
the course of their own criminal investigations or to the extent that information may be issued
to the revenue authori ties pursuant to the provisions of the Code of Criminal Procedure.
Section 394
Transfer of ownership
Where an unknown person, who was caught in the act of committing a tax crime but
escaped, has left items behind and these items are seized or otherwise sec ured because it
is possible to confiscate them, they shall become the property of the State after one year has

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 136 of 140
elapsed if the owner of the items is unknown and the revenue authority has announced the
impending loss of the property by means of a public noti ce. S ection 10(2), first sentence, of
the Act on the Administrative Service of Documents shall be applied subject to the condition
that an announcement of the notice pursuant to the first sentence above has been published.
The period shall begin with the d isplaying of the announcement.
Section 395
Revenue authority’s power to inspect files
The revenue authority shall be authorised to inspect the files which are available to the court
or which would have to be presented to the court in the case of charges be ing brought, as
well as inspect confiscated or secured objects. The files shall be sent to the revenue
authority upon application for inspection.
Section 396
Suspending proceedings
(1) Where whether the act can be adjudged to constitute tax evasion depends on whether a
tax claim exists, whether taxes have been understated or whether unwarranted tax
advantages have been derived, the criminal proceedings shall be suspended until the
taxation procedure is concluded and can no longer be appealed.
(2) During inv estigations, the public prosecutor’s office shall rule on the suspension; in the
proceedings once public charges have been brought, the court dealing with the matter shall
rule on the suspension.
(3) The limitation shall be adjourned while the proceedings are suspended.
2nd Subchapter
Investigation
I. General
Section 397
Initiating criminal proceedings
(1) Criminal proceedings shall be deemed to have been initiated as soon as the revenue
authority, the police, the public prosecutor’s office, one of its inve stigators or the judge in a
criminal court adopts a measure, the purpose of which is identifiably to institute criminal
action against somebody for a tax crime.
(2) The measure and the time at which it was taken shall be entered in the records without
undu e delay.
(3) The accused shall be informed of the initiation of criminal proceedings at the latest when
he is called upon to reveal facts or supply documents which are related to the crime of which
he is suspected.
Section 398
Stay on the grounds of insign ificance
The public prosecutor’s office may refrain, even without the consent of the court responsible
for opening the main proceedings, from prosecuting tax evasion where only a minor
understatement of tax has occurred or where only minor tax advantages h ave been derived,
if the perpetrator’s degree of guilt is slight and there is no public interest in the prosecution.
This shall apply accordingly to proceedings brought for the receipt, holding or sale of goods
obtained by tax evasion pursuant to s ection 374 and for aiding and abetting a person who
has committed one of the acts under s ection 375(1) numbers 1 to 3.
Section 398a
Refraining from prosecution in certain cases
In cases where there is no exemption from punishment solely because the amount of
evasi on exceeds 50,000 euros (section 371(2) number 3), prosecution shall be refrained
from if, within a reasonable period of time allowed to him, the perpetrator

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 137 of 140
1. pays the taxes from this act which were evaded to his benefit, and
2. pays a monetary amount of 5 per cent of the evaded tax to the benefit of the
public purse.
II. Revenue authority procedure in the case of tax crimes
Section 399
Revenue authority’s rights and obligations
(1) Where the revenue authority conducts the investigation independently purs uant to
section 386(2), the revenue authority shall have the same rights and obligations as the public
prosecutor’s office has in an investigation.
(2) Where a revenue authority has been given jurisdiction pursuant to s ection 387(2) for an
area covered by several revenue authorities, the right and obligation of these revenue
authorities to investigate the facts where a tax crime is suspected and to issue all non –
deferrable orders to avoid obfuscation of the case shall remain unaffected. They may order
confi scation, emergency sales, searches, insp ections and other measures in accordance
with the regulations of the Code of Criminal Procedure applying to the public prosecution
office’s investigators.
Section 400
Application for the order of summary punishment
Where the results of the investigations provide sufficient grounds to bring a public charge,
the revenue authority shall apply to the judge to issue an order of summary punishment
where the criminal matter appears suited to treatment in summary proceedings without trial;
where this is not so, the revenue authority shall give the files to the public prosecutor’s office.
Section 401
Application for order of incidental consequences in independent proceedings
The revenue authority may submit the application to a llow it to order sequestration or expiry
independently or to set a monetary fine against a legal person or an association of persons
independently (s ections 440, 442(1), s ection 444(3) of the Code of Criminal Procedure).
III. Role of the revenue authority in public prosecutor proceedings
Section 402
General rights and obligations of the revenue authority
(1) Where the public prosecutor’s office conducts the investigation, the revenue authority
which would otherwise have had jurisdiction shall have the same rights and obligations as
the police authorities under the Code of Criminal Procedure as well as the powers pursuant
to s ection 399(2), second sentence.
(2) Where a revenue authority has been transferred pursuant to s ection 387(2) jurisdiction
for an area covered by several revenue authorities, subs ection (1) above shall apply for each
of these revenue authorities.
Section 403
Participation of the revenue authority
(1) Where the public prosecutor’s office or the police authorities conduct investigations
con cerning tax crimes, the revenue authority which would otherwise have had jurisdiction
shall be entitled to participate. The revenue authority should be informed in good time of the
place and time of the investigative actions. The representative of the reve nue authority shall
be permitted to pose questions to the accused persons, witnesses and experts.
(2) Subs ection (1) above shall apply mutatis mutandis to court hearings at which the public
prosecutor’s officer is also permitted to attend.
(3) The revenue authority which would otherwise have had jurisdiction shall be informed of
the charge and the application for the order of summary punishment.

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 138 of 140
(4) Where the public prosecutor’s office considers staying the proceedings, it shall consult
the revenue authorit y that would otherwise have had jurisdiction.
IV. Tax and customs investigation
Section 404
Tax and customs investigation
The Customs Investigation Offices and the agencies of the revenue authorities of the Länder
which are responsible for tax investigatio n as well as their officials shall, in criminal
proceedings for tax crimes, have the same rights and obligations as the police authorities
and officers according to the regulations of the Code of Criminal Procedure. The agencies
described in the first sent ence above shall have the powers pursuant to s ection 399(2),
second sentence, as well as the power to examine the papers of those affected by the
search (s ection 110(1) of the Code of Criminal Procedure); their officers shall be
investigators of the public prosecutor’s office.
V. Reimbursement for witnesses and experts
Section 405
Reimbursement for witnesses and experts
Where the revenue authority consults witnesses and experts for the purposes of evidence,
they shall be compensated or remunerated pursuant to the Judicial Remuneration and
Compensation Act. This shall also apply in the cases set out in section 404.
3rd Subchapter
Judicial proceedings
Section 406
Cooperation of the revenue authority in summary proceedings and in independent
proceedings
(1) Whe re the revenue authority has applied for an order of summary punishment to be
issued, the revenue authority shall have the rights and obligations of the public prosecutor’s
office as long as no date for a trial is appointed pursuant to s ection 408(3), seco nd sentence,
of the Code of Criminal Procedure, and no obj ection has been lodged against the order of
summary punishment.
(2) Where the revenue authority has submitted an application to allow it to order
sequestration or expiry independently or to set a mo netary fine against a legal person or an
association of persons independently (s ection 401), the revenue authority shall exercise the
rights and obligations of the public prosecutor’s office as long as oral hearings are not
applied for, or ordered by the c ourt.
Section 407
Participation of the revenue authority in other cases
(1) The court shall allow the revenue authority opportunity to present aspects which, from its
perspective, are of relevance to the decision. This shall also apply where the court cons iders
staying the proceedings. The revenue authority shall be informed of the date of the trial and
the date of the hearing by a commissioned or requested judge (s ections 223 and 233 of the
Code of Criminal Procedure). Upon request, the revenue authority’s representative shall be
allowed to speak during the trial. The representative shall be allowed to pose questions to
the defendants, witnesses and experts.
(2) The revenue authority shall be informed of the ruling and other decisions closing the
proceeding s.
4th Subchapter
Costs of the proceedings

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 139 of 140
Section 408
Costs of the proceedings
In criminal proceedings for a tax crime, necessary expenses of a participant within the
meaning of s ection 464a(2) number 2 of the Code of Criminal Procedure shall include the
legal fees and expenses for a tax consultant, tax representative, auditor or certified
accountant. Where there are no legal provisions on fees and expenses, they may be
reimbursed up to the amount of the legal fees and expenses of a lawyer.
Fourth Chapter
Administrative fine proceedings
Section 409
Competent administrative authority
In the case of tax offences, the competent administrative authority within the meaning of
section 36(1) number 1 of the Act on Administrative Offences shall be the revenue autho rity
with subject -matter jurisdiction pursuant to s ection 387(1). S ection 387(2) shall apply
accordingly.
Section 410
Supplementary provisions on administrative fine proceedings
(1) Apart from the procedural provisions, the provisions of the Act on Adminis trative Offences
shall apply accordingly to administrative fine proceedings:
1. sections 388 to 390 on the jurisdiction of the revenue authority,
2. section 391 on the jurisdiction of the court,
3. section 392 on the defence,
4. section 393 on the relation ship between criminal proceedings and the taxation
procedure,
5. section 396 on the suspension of proceedings,
6. section 397 on the initiation of criminal proceedings,
7. section 399(2) on the rights and obligations of the revenue authority,
8. sections 402, 403(1), (3) and (4) on the role of the revenue authority in the
public prosecutor proceedings,
9. section 404, first sentence and the first half -sentence of the second sentence on
tax and customs investigation,
10. section 405 on compensation for witne sses and experts,
11. section 407 on the participation of the revenue authorities and
12. section 408 on the costs of proceedings.
(2) Where the revenue authority prosecutes a tax crime connected with a tax offence
(section 42(1), second sentence, of the A ct on Administrative Offences), the revenue
authority may, in the cases of s ection 400, apply to extend the order of summary punishment
to the tax offence.
Section 411
Administrative fine procedures against lawyers, tax consultants, tax representatives,
au ditors or certified accountants
Before an administrative fine notice is issued against a lawyer, tax consultant, tax
representative, auditor or certified accountant for a tax offence which he committed in the
exercise of his profession in advising on tax m atters, the revenue authority shall allow the

Service provided by the Federal Ministry of Justice
in cooperation with juris GmbH – www.jur is.de
Page 140 of 140
competent professional organisation the opportunity to present aspects which, from its
perspective, are of relevance to the decision.
Section 412
Service, enforcement, costs
(1) Notwithstanding s ection 51(1), f irst sentence, of the Act on Administrative Offences, the
provisions of the Act on the Administrative Service of Documents shall also apply to the
method of service of documents even where a revenue authority of the Länder has issued
the notice. S ection 51 (1), second sentence, and s ection 51(2) to (5) of the Act on
Administrative Offences shall remain unaffected.
(2) Notwithstanding s ection 90(1) and (4), s ection 108(2) of the Act on Administrative
Offences, the provisions of the Sixth Part of this Code sha ll apply to the enforcement of
revenue authority notices in administrative fine proceedings. The remaining provisions of the
ninth chapter of the Second Part of the Act on Administrative Offences shall remain
unaffected.
(3) S ection 107(4) of the Act on Ad ministrative Offences shall also apply to the costs of the
administrative fine procedure even where a revenue authority of the Länder has issued the
administrative fine notice; in place of s ection 19 of the Administrative Costs Act,
section 227 (1) and s ect ion 261 of this Code shall apply.
Ninth Part
Final provisions
Section 413
Restriction of basic rights
The basic rights to physical integrity and freedom of the person (Article 2(2) of the Basic
Law), the privacy of correspondence, posts and telecommunicati ons (Article 10 of the Basic
Law) and the inviolability of the home (Article 13 of the Basic Law) shall be restricted in
accordance with this Code.
Section 414
(obsolete)
Section 415
Entry into force
(1) This Code shall enter into force on 1 January 1977 u nless the following subs ections
stipulate otherwise.
(2) S ection 19(5), s ection 117(5), s ection 134(3), s ection 139(2), s ection 150(6),
section 156(1), s ection 178(3), s ection 212, s ection 382(4), s ection 387(2) and
section 391(2) shall enter into force on the day after its promulgation .
(3) S ections 52 and 55 shall be applied for the first time from 1 January 1984.