Reduction of advance payments
November 10, 2010 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
My sole proprietorship generated a profit of approximately 19,000 euros in 2008. The financial statements for 2009 and 2010 are not yet ready. Based on the numbers from 2008, I am now required to make high advance payments for corporate and trade tax for 2010 (a similar notice will likely also come for 2009). However, my profits for 2009 and 2010 are expected to be significantly lower (less than 4,000 euros). How can I file an objection, or how can I reduce or avoid the advance payments? Do I need to provide evidence for this?
Dear client,
Thank you for your inquiry, which I would like to answer based on the information you provided and in the context of your commitment in an initial consultation as follows:
File an objection against the advance payment notice within the one-month deadline. Attach to the objection the official form "Application for Adjustment of Corporate Tax Advance Payments and Trade Tax Assessment Amount for Advance Payment Purposes" (which you can download from the internet) filled out and signed by you.
At the same time, attach a business evaluation for 2010 and a calculation of the expected taxable income to support your objection. Compare the calculated corporate tax with the corporate tax calculated by the tax office. For the difference, you MUST also request a stay of execution in the objection letter, so that you have protection from enforcement.
Regardless, you should immediately submit your tax returns for 2009 to the tax office.
I hope my explanations have been helpful to you.
Yours sincerely,
Ulrich Stiller
Tax advisor/Dipl. Business economist
