Germany has updated the Tax Code with a new provision to promptly report any incorrect or incomplete tax returns.
Germany’s Ministry of Justice and Consumer Protection has introduced a new provision in the Tax Code for taxpayers reporting incorrect or incomplete tax returns.
Under the newly introduced Section 153 (4) AO, the taxpayer’s obligation under Section 153 (1) AO to promptly report incorrect or incomplete tax returns has been expanded. It now includes cases where external audit adjustments to one taxpayer’s tax return in connection with a tax assessment notice may necessitate amending other tax returns that are not externally audited.
Section 153 (4) AO applies to all taxes arising after 31 December 2024, and to all tax periods subject to audit orders issued from 1 January 2025. This means it also applies to tax periods before 2025.
