Liability Notices

Liability in German tax law is defined as the obligation to be liable with one’s own assets for another person’s tax debt. Consequently, through a liability notice, the tax office can hold you liable for another person’s tax debt.

The liability decision is an discretionary decision by the tax authority. Before asserting a claim, the authority, as the liability creditor, must not only verify the existence of the legal requirements but also determine whether it intends to hold a potential debtor liable, and if several potential debtors are involved, which one it wishes to hold liable. For this purpose, the potential debtor must be granted a prior hearing.

As a general rule, you may only be held liable if an attempt has previously been made to collect the tax debt from the actual taxpayer.

Liability Notice against Specific Professional Groups

The law provides for different cases in which liability may be asserted. A liability notice can be issued, in particular, against a managing director, a legal representative, or an employer. Furthermore, a liability notice can be issued against a lawyer, patent attorney, notary, tax advisor, tax agent, auditor, or certified public accountant for an act within the meaning of Section 69 of the German Tax Code (AO) that they performed in the exercise of their profession.

To defend against a liability notice, it is necessary to conduct a thorough examination of both the specific requirements of the relevant liability claim and the existence of the tax claim.

We will undertake for you both the review of a liability notice issued against you and the examination of the existence of the alleged tax debt.

We can file an objection on your behalf against an issued liability notice and, in the event of an unsuccessful objection procedure, file a lawsuit with the competent fiscal court.