German tax authorities should show leniency to households, firms amid energy crisis - letter

Reuters
·1 min read
FILE PHOTO: Flames from a gas burner on a cooker are pictured in a private home in Bad Honnef

BERLIN (Reuters) - German tax authorities should show leniency towards private households and companies, for example by suspending enforcement measures in certain cases, in light of the energy crisis, said a Finance Ministry letter seen by Reuters on Thursday.

Due to high energy costs, taxpayers may temporarily not be able to meet their obligations, said the letter.

"Tax authorities will take appropriate account of this special situation in the case of taxpayers who are not insignificantly negatively affected economically," said the letter coordinated with the federal states' top tax authorities.

Due tax payments could be deferred and advance payments could be adjusted upon request, said the letter, which added that authorities should use the leeway provided for them under law.

The special treatment for income and corporate taxes will initially apply until March 31, 2023, according to the letter.

(Reporting by Christian Kraemer, Writing by Miranda Murray, Editing by Rachel More)

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