Tax office shows consideration due to increased energy costs

The Federal Ministry of Finance has instructed the tax authorities to use the room for maneuver available to them for the benefit of taxpayers burdened by increased energy costs.

The consequences of Russia's invasion of Ukraine in violation of international law and the resulting sanctions are also serious for citizens and companies in Germany. In consultation with the federal states, the Federal Ministry of Finance has therefore instructed the tax authorities to take appropriate account of this special situation for taxpayers who have been negatively affected to a not inconsiderable extent.

In addition to the reduction of advance payments for income or corporation tax, the tax authorities have a range of equitable measures available to them within the framework of the general legal requirements in order to make appropriate decisions. These include, in particular, deferral or temporary suspension or restriction of enforcement (stay of enforcement).

The tax authorities are to decide in each individual case, taking into account the facts relevant to the decision, to what extent the requirements for a tax equity measure are met. When reviewing the requirements, the tax offices should expressly not impose any strict requirements for applications received by March 31, 2023. Decisions on applications for equitable measures or adjustments to advance payments, taking into account the current situation, are to be made promptly.

A retroactive reduction of advance payments for 2022 is also possible. The charging of deferral interest can be waived in individual cases on equitable grounds if the equitable measure is granted for a period of no more than three months. The prerequisite is that the taxpayer has fulfilled their tax obligations, in particular their payment obligations, on time to date and has not repeatedly made use of deferrals and deferrals of enforcement in the past, whereby equitable measures due to the coronavirus crisis are not taken into account to the detriment of the taxpayer.