Once the tax has been determined, both the tax office and the taxpayer are bound by the tax assessment. A change in the tax assessment is only possible if a correction provision (172 ff. Act) allows this. Taxes can be set subject to review (164 Act) or with a provisional notice (165 Act). If the assessment period (usually 4 years for taxes) has expired, the tax assessment can no longer be changed, revoked or corrected (assessment limitation period). The start of the assessment period can be postponed (Section 170 Act) and its expiry can be suspended (Section 171 Act). Make use of the income tax calculator and understand how the taxes work.
The Right Tax Registration Options
In the case of a tax registration (e.g. sales tax or wage tax registration), however, the taxpayer calculates the tax himself, reports it to the tax office and pays it. A tax registration is equivalent to a tax assessment subject to review (168 sentences 1 Act). If the tax return calculated by the taxpayer shows a credit balance, the tax office must first approve it before the tax return counts as a tax assessment subject to verification and the credit balance can be reimbursed. If the tax authorities do not make any changes to the tax return or approve the credit calculated by the taxpayer, no notification will be issued.
In the taxation procedure, the taxpayer must therefore fulfill both general and special obligations to cooperate, particularly in the form of declaration and information obligations. But the tax authorities are also bound by certain principles: They have to set and raise taxes in accordance with the law. In particular, they must ensure that taxes are not evaded or recklessly reduced, that they are wrongly levied and that tax refunds and tax breaks are not wrongly granted or denied.
- The tax authorities determine the facts ex officio (principle of investigation). In doing so, they must also take into account the favorable circumstances for the taxpayer. But that doesn’t mean that the tax office must follow up every position in the tax return in detail and request extensive evidence for each tax deduction. If there are no special circumstances and the tax return is complete and plausible, the taxpayer can believe the information provided by the taxpayer without asking and set the tax on this basis.
The Best Determinations
The determination of the tax bases, i.e. the legal and factual circumstances to which the taxation is linked, basically forms a dependent part of the tax assessment, which only serves to justify the tax assessment. Therefore, a taxpayer cannot contest individual tax bases, but only the tax assessment as a whole by objection (see Section 157 (2) Act). Tax bases for income tax are z. B. wages or profits from business operations, but also the amount of donations or health insurance contributions.