Waiver of interest on arrears as part of the coronavirus measures

No interest on arrears can be charged on taxes for which an entitlement to interest-free deferral would have existed under the equity regulations during the coronavirus pandemic.

Anyone who was entitled to an interest-free deferral of taxes due to the tax authorities' pandemic-related equity measures is also entitled to a waiver of interest on arrears for the same period. The Münster Fiscal Court sees no reason to disadvantage taxpayers for whom the tax assessment was made at a later date. If the tax assessment had been issued earlier, the entitlement to an interest-free deferral of the tax payment would also have started earlier.

The court did not accept the tax office's argument that the plaintiff could have avoided the interest on arrears by making a higher advance payment: It was contradictory to defer the outstanding tax arrears without interest and, on the other hand, to demand that the plaintiff avoid interest by making higher advance payments. The tax office is therefore obliged to waive the interest on arrears. According to the court, the scope for discretion is reduced to zero in this respect. The tax office has nevertheless lodged an appeal with the Federal Fiscal Court.