E-balance sheet: Scope of data transfer

According to the ruling of the Rhineland-Palatinate State Tax Office, dated 6 February 2017, S 2133b A/S 2226 A, S 2144 A-St 31 4, St 32 1, where lists or schedules of fixed assets and account statements are requested, a request should be made for a further, more detailed electronic submission of the e-balance sheet data.

A further comprehensive submission of e-balance sheet data may, where appropriate, lead to the discovery of new facts (which, for example, could result in a higher tax liability); this may then result in the revocation or amendment of the tax assessment notice (Section 173 of the German Fiscal Code (AO)). In accordance with the ruling of the Regional Tax Office for North Rhine-Westphalia, dated 18 December 2014, S 2133b – 2014/0009 – St 145, BC 2015, 106, it remains permissible to submit these documents in paper form. If the requested additional documents are not submitted, the tax office may flag the case for a tax audit in order to carry out a more detailed examination of these outstanding documents.

E-balance sheet: No provision for cases of hardship

The balance sheet (known as the ‘e-balance sheet’) and the profit and loss account must be submitted via electronic data transmission in accordance with the officially prescribed data format (Section 5b(1) of the Income Tax Act). However, upon application, the tax office may waive the requirement for electronic submission in order to avoid undue hardship (Section 5b(2) of the Income Tax Act).

The tax office is not obliged to apply the hardship provision in relation to e-balance sheets. Unless there are specific grounds (economic unfeasibility), this provision is not applied. Schleswig-Holstein Finance Court, judgment of 8 March 2017 – 1 K 149/15.