Constitutional doubts about the amount of late payment penalties

A tax court has granted a stay of execution of late payment penalties because it has constitutional doubts about the amount of the late payment penalties.

In proceedings concerning the suspension of enforcement, the Münster Tax Court has ruled that there are constitutional doubts about the amount of the late payment surcharges incurred from 2019. Previously, the fiscal courts have rejected such claims because the late payment surcharges do not have a clearly defined interest component that would allow a comparison with market interest rates. However, the plaintiff referred to a decision of the Federal Fiscal Court in which it states that the constitutional doubts regarding the amount of interest on arrears can be applied to surcharges for late payment insofar as they do not have the function of a means of exerting pressure, but rather a function similar to interest.