Data protection law in the area of financial administration

Although the GDPR also applies to the tax authorities, the resulting claims for information against the tax office are generally limited.

Since the General Data Protection Regulation (GDPR) came into force, the tax authorities have regularly received requests for information from taxpayers who invoke the GDPR. The Federal Fiscal Court has now ruled in a landmark judgment on the requirements and scope of the right to information under the GDPR. According to the ruling, the processing of personal data by the tax authorities is generally subject to the GDPR, regardless of how the files are kept and the data is processed. The scope of application of the GDPR, which is based on EU regulations, is also not limited to taxes that are harmonized in the EU, but includes all types of taxes and duties.

However, according to the ruling, the GDPR does not automatically grant the right to receive the data and documents held by the tax authorities about the taxpayer. Rather, the right to information under the GDPR is initially limited to finding out which categories of data are processed for which purposes and for how long this takes place. Only if a copy of documents is essential to enable the data subject to effectively exercise the rights conferred on them by the GDPR (e.g. erasure rights) is there a right to be provided with a copy of extracts from documents or even entire documents or extracts from databases. As the European Court of Justice has already ruled, the reproduction of extracts from documents or entire documents may prove to be indispensable if they need to be presented in their context in order to ensure their comprehensibility.

The right of access can only be excluded if the data controller demonstrates that the request is manifestly unfounded or excessive. In its ruling, the Federal Fiscal Court confirmed the rights of data subjects arising from the GDPR, but also clarified that the GDPR does not give taxpayers automatic access to the tax files held on them by the tax office.