The Federal Fiscal Court (Bundesfinanzhof) has commented on the question of whether it is possible to assess interest on income tax prepayments that have been assessed too low if interest on evasion has already been assessed for the same periods in respect of reduced income tax.

The tax office may also make mistakes and, as a result, a penalty may be unlawful. The Düsseldorf Fiscal Court ruled that the assessment of a late payment surcharge is not lawful if the tax office is predominantly at fault.

The tax administrations of Bavaria, North Rhine-Westphalia and Rhineland-Palatinate are extending the disaster decree in important areas in order to further relieve those affected by the effects of the rainstorm „Bernd“ as well as the helpers.

On 01.01.2025, the new property tax will come into force as a result of the property tax reform. The standard values will lose their validity as the previous basis for calculating the property tax. In the federal states that have not adopted any deviating regulations, the property tax value will then take their place. The tax authorities will therefore request a large amount of new data from property owners this year.

Income tax

• People with disabilities: claiming health care costs and lump-sum allowance to reduce taxes
• Landlords can also claim home office allowance
• No special expense deduction for cash payment of childcare costs
• Interest on evasion for abbreviated advance income tax payments and for evaded annual income tax

Inheritance/gift tax

• Tax consequences of the termination of a usufruct of real property

Real Estate Transfer Tax

• On the Uniform Contractual Framework in Real Estate Transfer Tax Law

Procedural law

• Submission of a tax return shortly before expiry of the assessment period – statute of limitations may apply!
• No late payment surcharge in case of predominant contributory negligence of the tax office

Other

• Real estate tax reform 2022: cut-off date for information 01.01.2022
• Annual financial statements: Disclosure deadline for 2020 extended
• Floods: Tax relief measures extended

Tax/social security deadlines -February/March 2022

Do you have questions about the articles in this issue of Monthly Information or about other topics? Please contact me. I will be happy to advise you.

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