Tax estimate in consequence
September 16, 2009 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello, I have received an income tax and sales tax estimate for 2006 and 2007 due to non-submission of tax returns and annual financial statements (balance sheet). Due to data loss, this has not been able to be completed yet. As of January 1, 2008, current data has been generated again. My question: Do I have to submit the missing years or can I now create a tax return for 2008, possibly with an opening balance sheet? Or would it also be possible to switch to a simplified income statement (EÜR) from January 1, 2008, as the turnover and profit are quite low (€60,000 - €20,000). Thank you very much. Best regards A. Wegner.
Dear Client,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation for an initial consultation as follows:
In general, you are required to submit tax returns to the tax office. The legal obligation to submit a tax return is regulated in § 149 of the Tax Code (AO) with reference to the respective individual tax laws (e.g. § 25 para. 3 Income Tax Act in conjunction with § 56 Income Tax Implementation Ordinance).
Tax returns for mandatory assessments must be submitted no later than 5 months after the end of the calendar year (§ 149 para. 2 AO). However, this legal deadline can be extended by the tax authorities (§ 109 para. 1 AO).
If you have not submitted the returns despite your obligation, the submission can be enforced by a penalty (§ 328 AO).
According to § 162 AO, the tax office can estimate the tax basis, which it has done in your case. Usually, an estimate is made subject to review according to § 164 para. 1 AO (as noted on the notice), so the decision can be changed. The obligation to submit the tax returns is not affected by the estimate (§ 149 para. 1 sentence 4 AO), meaning you must still submit the tax returns. The tax office can impose a late-filing penalty under § 152 AO.
You should definitely file an objection against the decisions and submit the tax returns. As mentioned, an estimate does not exempt you from submitting the tax returns.
In general, you can change the method of determining profits if the corresponding legal requirements are met, which I cannot verify based on the information provided.
I hope my explanations have been helpful to you.
Best regards,
Ulrich Stiller
Tax Advisor
