Tax evasion by a co-heir

The legal consequences of tax evasion affect an heir even if he or she has no knowledge of the act of the co-heir.

The extension of the assessment period to ten years in the case of tax evasion also applies to all co-heirs if the evasion was committed by only one heir. According to a ruling by the Federal Fiscal Court, the extended deadline thus also applies to co-heirs who neither committed tax evasion themselves nor knew about it. In the case in question, the testator's tax returns were invalid because she was legally incapacitated due to dementia. This resulted in a duty of correction for the heirs.