Tax claims - waiver

• Existence of significant hardship Significant hardship is to be assumed on objective grounds when a claim arising from the tax debt relationship (Steuerschuldverhältnis) legally exists, but circumstances are present that run counter to the purpose of the law and its underlying intent. Circumstances that the legislature knowingly accepted when framing the statutory provision, however, do not justify a Billigkeitserlass (remission on equitable grounds). Significant hardship can also exist for personal reasons. Collecting a tax claim is inequitable for personal reasons if the taxpayer is both in need of remission (erlassbedürftig) and deserving of remission (erlasswürdig): • Erlassbedürftigkeit (need for remission) exists when collecting the tax would destroy or seriously endanger the taxpayer's economic or personal existence. Economic existence is endangered if, for natural persons, without an equitable measure, the necessary means of subsistence could no longer be covered, whether temporarily or permanently. • Erlasswürdigkeit (worthiness of remission) exists only if the taxpayer did not bring about their own lack of financial capacity themselves and did not, through their conduct (e.g., breach of tax obligations), violate the tax interests of the general public.

• Application for remission (Erlassantrag) You can apply in writing for a remission at the Finanzamt (tax office) responsible for you. This is usually the Finanzamt that issued the notice involving a back payment or advance tax payment. It is best to use the Elster portal for such an application. • Evidence for the remission grounds claimed Determined by the Finanzamt on a case-by-case basis. Evidence is expected for the remission grounds claimed (e.g. information on current financial circumstances).

• Erlassantrag [application for waiver] www.elster.de/eportal/wizard/seq/steuerlichenachricht-1/eing

none: for submitting the application and for the decision on the waiver

• Abgabenordnung (AO, Fiscal Code) § 227 - remission www.gesetze-im-internet.de/ao_1977/__227.html

• Tax claims service.berlin.de/dienstleistung/325411/

Responsibility (Zuständigkeit) for processing a remission application (Erlassantrag) lies with the locally responsible tax authority (Finanzbehörde) (§§ 17 ff. Abgabenordnung [Fiscal Code]). This is usually the Finanzamt (tax office) that assessed the tax claim to be remitted.