Knowledge of the tax office of tax-relevant facts

If the tax office is aware of all tax-relevant facts, the failure to submit a tax return does not constitute tax evasion, which would lead to a longer assessment period.

The Münster Fiscal Court has ruled that there is no tax evasion if a tax return is not submitted in breach of duty, but the tax office has all the necessary information in the form of electronic wage tax certificates. In the case in dispute, the tax office only established almost ten years later that a married couple would have been obliged to submit a tax return based on the data available to the tax office and therefore issued assessment notices. The couple successfully argued in court that if the tax office was aware of the tax-relevant facts, there could be no tax evasion and therefore the extended assessment period could not apply in the case of tax evasion. However, the tax office has lodged an appeal against the decision with the Federal Fiscal Court.