Ask a tax advisor on the topic of Gift tax

Statute of limitations gift tax

June 8, 2010 | 20,00 EUR | answered by Michael Herrmann

Hello,

my friend received a gift of DM 30,000 on May 24, 1999 and DM 70,000 on February 23, 2000 from his aunt. Gift tax was not paid. Does he have to expect that the tax office will contact him regarding this matter or is everything already statute-barred?

I hope for a professional answer.

Thank you!

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment in an initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.

Since the gifts in the years 1999 and 2000 were not reported to the tax office, gift tax was evaded or negligently reduced.

According to § 370 para. 1 no. 2 AO, anyone who evades taxes or obtains unjustified tax benefits by negligently failing to inform the tax authorities about tax-relevant facts commits an offense.

The statute of limitations is five years and begins upon completion of the tax evasion.

The assessment limitation period for the evaded taxes is 10 years and begins at the end of the third calendar year following the year in which the tax claim arose. The tax office can still assess and collect the gift tax from 1999 until the end of 2012 and from 2000 until the end of 2013.

Criminal law regards the offense as likely to be time-barred, but from a tax perspective, the tax can still be collected.

I hope that these explanations have given you an initial overview of the situation within the scope of your inquiry.

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant