Tax Law

Opposition proceedings

The objection procedure as an extrajudicial appeal procedure in tax law is regulated in the seventh part of the Fiscal Code (Sections 347 et seq. AO).

An objection is – subject to other competences – a suitable legal order against administrative acts in tax matters. An objection can be filed if you as a taxpayer are adversely affected by the administrative act (or its omission), because: Decisions of the tax offices do not have to be accepted unchecked.

In most cases, an appeal in tax proceedings is directed against a tax assessment issued by the tax office.

If you have received a tax assessment with which you do not agree, it is particularly important that you contact us as soon as possible, as the deadline for lodging an appeal is only one month from the notification of the assessment.

The filing of an appeal means that the tax office that issued the tax assessment must review it, without being allowed to charge any costs or fees for doing so.

The objection may be withdrawn at any time until the decision is announced.

The tax authority decides on the objection by means of an objection decision. If the objection is granted in whole or in part, i.e. if the objection is successful, the decision is generally made by means of an administrative act that is amended accordingly and combined with the decision (remedial notice). If the objection is not upheld, a separate notice is issued rejecting the objection.

In principle, the objection does not suspend the execution of the contested administrative act; in this respect, the objection has no suspensive effect. The collection of the levies collected is not suspended by the objection, i.e. the payment demands associated with the tax assessment remain in force regardless of the objection proceedings.

However, the authority may suspend enforcement in whole or in part. This is to be done upon application if there are serious doubts about the legality of the contested administrative act – or if enforcement would result in undue hardship. If duties have already been paid, enforcement may be suspended upon application in accordance with the above-mentioned conditions. Taxes already paid will then be refunded until a decision is reached.

If the decision on the objection depends in whole or in part on other legal disputes, the authority may independently suspend the decision until these have been settled, under certain circumstances also following a suggestion by the objector.