Silver in accordance with § 4 paragraph 3 of the Income Tax Act
February 2, 2015 | 49,00 EUR | answered by Ralph J. Schnaars
Hello,
I have the following question...
Key data:
Sole proprietorship business for business consulting
§4 para. 3 tax code
In 2011, silver coins were purchased for 20,000 euros and booked as goods (expense-profit-reducing) voluntary BV (economic crisis in 2008 / securing the sole proprietorship / promoting the business / creating a liquidity reserve)
There is now a tax audit.
In the BMF decree of June 20, 2012, BMF-010203/0268-VI/6/2012, it is regulated that the cash flow principle for such non-depreciating assets only applies until March 31, 2012. Therefore, from my point of view, it is okay.
Do you see it the same way? What else do you suggest for documentation to the tax auditor? The documents have not been sent yet.
Thank you for a brief information.
Best regards
Dear inquirer,
The way you present the situation is debatable.
To secure the sole proprietorship/promote the business/establish a liquidity reserve, one would probably consider the silver more as a fixed asset rather than as inventory ( - inventory somehow does not fit the purpose of the business).
However, if the purchase of the silver coins was recorded in the current accounting without any indication of desired tax savings, it can be openly discussed with the tax auditor whether the coins may have been a short-term investment that was later intended to be changed into a longer-term safeguard for the business.
From today's perspective, I would wait for the tax audit questions and then respond situationally.
The tax audit should not detect any indication of intentional tax evasion, as it is a business-related process. However, it is to be presumed that the tax audit was scheduled for this reason, as it is rare for a consulting firm to purchase "goods".
I hope I could assist you with your considerations.
Kind regards,
Ralph J. Schnaars
STWB Steuerberatungsgesellschaft mbH
Direct contact +49 (0)171 525 20 42
Email mail@stwb-steuer.de
