Deductibility of liability notice after GmbH insolvency in private income tax return of managing director
(Note: "GmbH" stands for "Gesellschaft mit beschränkter Haftung" which is the German term for a limited liability company)
May 31, 2021 | 50,00 EUR | answered by Steuerberater Knut Christiansen
Tax assessment from the tax office after GmbH insolvency
After the insolvency of my GmbH, I received a tax assessment for outstanding tax debts.
I have now declared the paid amounts in my personal tax return.
The tax office now states that the amounts are not deductible. They are considered costs of private living expenses.
According to my research, I can deduct the amounts as losses from self-employment. However, I may need to declare them as business expenses in order for them to be accepted.
My question is, can I deduct these amounts and if so, how?
Good morning and thank you for using ask-a-tax-expert.com!
I would like to answer your question as part of an initial consultation.
If as the managing director of a GmbH you are held liable by the tax office for unpaid taxes (usually sales tax, wage tax), there are subsequent advertising costs associated with the earnings from employment. These costs would therefore need to be reported on attachment N. As the managing director of the GmbH, you are considered an employee for tax purposes and would generate income according to § 19 EStG with the appropriate contractual arrangement. Costs related to this activity would then be considered advertising costs. Please file an objection against the decision and request the deduction within the framework of employment income.
If it concerns liability for "own" wage tax, there are now also positive rulings. See e.g. https://www.otto-schmidt.de/news/steuerrecht/haftung-des-geschaftsfuhrers-fur-eigene-lohnsteuer-als-werbungskosten-2020-05-11.html
I hope this answers your question, otherwise feel free to ask further questions at no cost.
I would like to point out that this forum cannot replace a comprehensive and personalized tax consultation, but is primarily intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could differ.
Sincerely,
Knut Christiansen
Tax Consultant
