Accountancy firms and property owners are currently grappling with the property tax reform. Many of those affected are only just beginning to collect the necessary data. Others do not know where to start. Some firms, however, have managed to successfully complete all the property tax projects they have undertaken so far. One such firm is Henrik Langosch’s practice, which is in the final stages of its property tax projects. On „hsp live at 11“, the tax clerk spoke about his experiences over the past few weeks.
Henrik Langosch has been working at his current law firm for about a year. He has been entrusted with the task of dealing with property tax matters. For this reason, he was a guest at TAXarena, where hsp was also represented. At the industry gathering for software developers specialising in tax solutions, Paul and Henrik struck up a conversation. Around 80 exhibitors attended, and Henrik particularly appreciated the direct contact with those in charge. Many senior executives were present, which had a positive impact on networking. Both agree that discovering unfamiliar tools was particularly valuable and exciting.
Paul would like to know how Henrik acquired the necessary knowledge to Council tax has taken on. Initially, a team was formed within the firm, consisting of three people, including Henrik. At the outset, as much information as possible was gathered. A strategy was then drawn up setting out how the firm would approach the matter. Currently, 37 out of around 200 plots have not yet been validated, but the projects are all in their final stages. Had the deadline not been extended, all projects would have been completed on time with a slightly tighter schedule.
Mission: to provide information and collect data
Drawing on numerous conversations with clients, Paul highlights the biggest problem at present. Many law firms are struggling to obtain data from their clients. How did Henrik’s firm inform its clients? And how did it manage to obtain the necessary data? Clients were informed via a DATEV tool. This made it possible to identify which clients own property. Clients were approached in such a way as to offer them two options. Either the firm would take care of the Council tax. Or the client can do it themselves.
Originally, the plan was to move as many clients as possible to the cloud. However, this didn’t work out quite so well. There were a few clients who owned their own premises and were reluctant to make the move to the cloud. Yet the Opti.Tax Cloud is self-explanatory and easier to use than any Office programme. However, clients who are not technically inclined have an irrational fear of any better solution. The firm therefore offered various options to accommodate their clients.
Many hurdles on the road to a declaration of findings
The clients were of varying degrees of help when it came to gathering data. One of the firm’s major clients took the opportunity to compile all the data properly for once. For their own sake too, according to Henrik. In contrast, there were clients who had absolutely no idea where all their data was scattered. Paul wants to know which task was more difficult: data entry or managing the client. Henrik replies without hesitation that guiding the client was definitely the more difficult task. Once all the data was available, it took a maximum of 45 minutes to enter it. And that was only if the data wasn’t sent via the cloud.
However, there are also cases where the client does everything correctly, but the tax office does not. For example, the firm is currently dealing with a case in which a single economic entity holds no fewer than five tax reference numbers. To clarify this, Henrik followed up with the tax office. It turned out that the property had been bequeathed several times. Each time the property was inherited, the authorities had requested details from the new owner and issued a new tax number. To this day, the tax office has not explained how this situation is to be resolved. It’s hard not to resort to clichés.
In the Council tax the authorities are showing a willingness to engage in dialogue
What advice can Henrik give to his colleagues who find themselves in similar situations? In his experience, the tax clerk has found that the authorities are currently particularly willing to engage in dialogue and are open to discussion. This applies in particular to the issue of property tax. Should any problems arise, Henrik advises contacting the relevant authority directly. The assessment notices have not yet been submitted. They are ready to be dispatched. However, the firm has kept them as a bargaining chip with the tax authorities to help secure an extension of the deadline.
What about the costing? Is it still on track – or are there any nasty surprises in store for one or two clients? The firm has based its calculations on approximately 300 euros net per economic unit. Whilst there have been a few minor discussions here and there, the firm’s position is clear. Those who contribute significantly to the work will pay less. Those who expect a ‘all-inclusive’ service from the firm will pay more. All clients with property tax projects will continue to receive support on property tax matters beyond January 2023.
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