Last Updated on May 31, 2021 by LawEuro
The Fiscal Code of Germany
Fifth Part
Levy procedure
First Chapter
Realisation, maturity and expiration of claims arising from the tax debtor-creditor relationship
1st Subchapter
Realisation and maturity of claims arising from the tax debtor-creditor relationship
Section 218
Realisation of claims from the tax debtor-creditor relationship
(1) Tax assessment notices, tax rebate notices, notices of liability and administrative acts through which ancillary tax payments are assessed shall form the basis for realising claims arising from the tax debtor-creditor relationship (section 37); where late-payment penalties are concerned, mere fulfilment of the legal stipulations shall be enough (section 240). Self-assessed tax returns (section 168) shall be deemed equivalent to tax assessment notices.
(2) Decisions by the revenue authorities regarding disputes over the realisation of claims within the meaning of subsection (1) above shall be rendered by way of settlement notice. This shall also apply where the dispute concerns a refund claim (section 37(2)).
(3) If a tax summary or settlement notice is rescinded on the basis of an appeal or upon application by the taxpayer or a third party and an administrative act is subsequently issued that is more beneficial for the taxpayer, any resulting tax consequences for the taxpayer or a third party may be effected retroactively. Section 174(4) and (5) shall apply accordingly.
Section 219
Requirement to pay in the case of notices of liability
Unless otherwise stipulated, a person owing a liability may be required to pay only if enforcement against the tax debtor’s movable property was not successful or it can be assumed that enforcement would not lead to the desired result. This restriction shall not apply if the liability is due to the fact that the person owing the liability has committed tax evasion or has received, held or sold goods obtained by tax evasion or is legally obliged to withhold and remit to revenue authorities taxes which are due or to pay them at the expense of another.
Section 220
Maturity
(1) The due date for payment of claims arising from the tax debtor-creditor relationship shall be based on the provisions of the tax laws.
(2) Where the due date is not governed by a particular legal provision, the claim shall be due on the date on which it arises unless a deadline for payment has been granted in the case of a demand for payment required pursuant to section 254. Where in the cases described in the first sentence above the claim results from the assessment of claims arising from the tax debtor-creditor relationship, the amount shall not fall due before the assessment has been disclosed.
Section 221
Other maturity
Where a taxpayer has failed several times to pay an excise duty or VAT on time, the revenue authority may demand payment of the tax by a date before the legal due date but after the tax has arisen, to be determined by the revenue authority. The same shall apply where there is good reason to assume that the receipt of an excise duty or the VAT is at risk; collateral may also be demanded in lieu of bringing the due date forward. It shall be permissible to bring the due date forward in the cases described in the first sentence above only where the taxpayer has been informed of such in the event of his renewed failure to pay the tax on time.
Section 222
Deferment
The revenue authorities may defer in full or in part claims from the tax debtor-creditor relationship where their collection at due date would result in considerable hardship for the debtor and the claim would not appear to be endangered by the deferment. As a rule, deferments may be granted only upon application and the provision of collateral. Tax claims against the tax debtor may not be deferred where a third party (party obliged to pay the tax) must pay the tax on behalf of the tax debtor, in particular by withholding and remitting the tax due to the revenue authorities. Deferments of liability claims against such third parties obliged to pay taxes shall be ruled out where such parties have withheld tax amounts or taken receipt of amounts which contain a tax.
Section 223 (rescinded)
2nd Subchapter
Payment, set-off and remission
Section 224
Place of payment, date of payment
(1) Payments to the revenue authorities shall be made to the cash office responsible. Payments beyond the premises of the cash office may be surrendered only to a public official who is specially authorised to accept such payment and who can provide identification to verify such.
(2) Payment shall be deemed as having been effected:
1. on the date it is received, where a means of payment is delivered or sent, or three days after the date it is received where a cheque is delivered or sent,
2. on the date the amount is credited to the revenue authority, where money is transferred or paid to an account of the revenue authority, and where payment is made via payment slip,
3. on the due date of payment, where direct debit is authorised.
(3) Revenue authority payments shall be made via non-cash instruments. The Federal Ministry of Finance and the highest authorities of the Länder responsible for the revenue administration may allow exceptions for their subordinate bodies. The date of payment shall be, in the case of bank transfer or payment order, the third day after the order is handed in or sent to the credit institution or, where the amount is not to be debited immediately, the third day after it is debited.
(4) The responsible cash office may be closed for the delivery of payment against receipt. Subsection (2) number 1 above shall apply accordingly where, in the event of closed premises pursuant to the first sentence above, one or more branch offices of the Bundesbank, or, where these do not exist where the cash office is located, one or more credit institutions, are authorised to accept payment against receipt for the cash office.
Section 224a
Objects of art in lieu of payment
(1) Where a taxpayer owes inheritance tax or capital tax, it shall be possible to transfer ownership of objects of art, art collections, scientific collections, libraries, manuscripts and archives in lieu of payment and by way of contract under public law to the Land which is entitled to the tax revenue, provided that it is in the public interest to acquire such items due to their artistic, historical or academic importance. The transfer of ownership pursuant to the first sentence above shall not count as alienation within the meaning of section 13(1) number 2, second sentence, of the Inheritance Tax Act.
(2) Contracts pursuant to subsection (1) above shall be in written form; contracts in electronic form shall not be permitted. The taxpayer shall address the contractual offer to the revenue authority with local jurisdiction. Responsibility for concluding the contract shall rest with the highest revenue authority of the Land which is entitled to the tax revenue. The contract shall enter into force only after the highest authority of a Land responsible for cultural affairs has given its consent; this consent shall be secured by the highest revenue authority.
(3) Where a contract comes into effect, the tax debt shall be cancelled to the amount of the sum agreed in the contract on the date ownership is transferred to the Land which is entitled to the tax revenue.
(4) The tax claim may be deferred pursuant to section 222 for as long as it is uncertain whether a contract will come into force. Where a contract comes into force, there shall be no deferment interest rates levied for the period in which the claim was deferred.
Section 225
Order of amortisation
(1) Where a taxpayer owes several amounts and, in the case of voluntary payment, the amount paid is not sufficient to amortise all debts, the debt which the taxpayer designates when making the payment shall be amortised.
(2) Where the taxpayer does not designate a debt, but makes voluntary payment which does not cover all debts, administrative penalties shall be paid first, followed, in this order, by coercive fines, withholding taxes, other taxes, costs, late-filing penalties, interest and late-payment penalties. Within this order, the individual debts shall be arranged according to their maturities; the revenue authority shall determine the order of amortisation for amounts falling due simultaneously and with regard to late-payment penalties.
(3) Where payment is forced by administrative decision (section 249) and the amount available is insufficient to amortise all debts for which enforcement was imposed or the collateral realised, the revenue authority shall determine the order of amortisation.
Section 226
Set-off
(1) Unless otherwise stipulated, the provisions of civil law shall apply mutatis mutandis with regard to using both claims from the tax debtor-creditor relationship and counterclaims to set off claims.
(2) Claims arising from the tax debtor-creditor relationship may not be used as set-off where they have lapsed through limitation or the expiry of a period of exclusion.
(3) Taxpayers may set off claims arising from the tax debtor-creditor relationship only with counterclaims which are uncontested and have been established as final andbinding.
(4) The political subdivision that administers the tax shall also be deemed to be creditor or debtor of a claim from the tax debtor-creditor relationship with respect to any set-off.
Section 227
Remission
The revenue authorities may remit in full or in part claims arising from the tax debtor-creditor relationship where their collection would be unreasonable given the circumstances; under the same conditions, amounts already paid may be refunded or credited.
3rd Subchapter
Lapse of right to enforce payment of overdue tax
Section 228
Object of the limitation, limitation period
Claims arising from the tax debtor-creditor relationship shall be subject to a special limitation period on the payment of overdue tax. The limitation period shall be five years, or ten years in cases where section 370, 373 or 374 applies.
Section 229
Beginning of limitation period
(1) The limitation period shall begin upon expiration of the calendar year in which the claim first fell due. However, it shall not begin before expiration of the calendar year in which the assessment, from which the claim arises, of a claim arising from the tax debtor-creditor relationship, or its cancellation, amendment or correction pursuant to section 129 has come into effect; a self-assessed tax return shall be deemed equal to a tax assessment.
(2) Where a notice of liability has been issued without an order to pay, the period of limitation shall begin upon expiration of the calendar year in which the notice of liability has come into effect.
Section 230
Suspension of limitation period
The period of limitation shall be suspended as long as the claim cannot be pursued as a result of force majeure within the final six months of the period of limitation.
Section 231
Interruption of limitation period
(1) The limitation period shall be interrupted in the event of:
1. postponement of payment, deferment, suspension of enforcement, suspension of a customs debtor’s obligation to pay duties, or postponement of enforcement,
2. provision of collateral,
3. an enforcement measure,
4. filing of a claim in insolvency proceedings,
5. entry into force of a prohibition on enforcement in accordance with section 294(1) of the Insolvency Code,
6. inclusion in an insolvency plan or a judicial debt settlement plan,
7. revenue authority investigations to ascertain the taxpayer’s place of residence or abode, or
8. enforcement of the claim in writing.
Section 169(1), third sentence, shall apply mutatis mutandis.
(2) The interruption of the limitation period shall last,
1. in cases where subsection (1), first sentence, number 1 above applies, until the end of the respective measure,
2. in cases where subsection (1), first sentence, number 2 above applies, until the collateral is released,
3. in cases where subsection (1), first sentence, number 3 above applies, until the attachment lien, judgement lien, or other preferential right expires,
4. in cases where subsection (1), first sentence, number 4 above applies, until the end of the insolvency proceedings,
5. in cases where subsection (1), first sentence, number 5 above applies, until the prohibition on enforcement ceases to apply,
6. in cases where subsection (1), first sentence, number 6 above applies, until the insolvency plan or judicial debt settlement plan is fulfilled or ceases to apply.
In cases where a claim is lodged against a revenue authority, the resulting interruption of the limitation period shall not end before a final and binding decision on the claim has been issued.
(3) A new limitation period shall begin upon expiration of the calendar year in which the interruption ends.
(4) The limitation period shall be interrupted only for the amount to which the interrupting measure pertains.
Section 232
Effect of limitation period
The claim arising from the tax debtor-creditor relationship and the dependent interest shall be rescinded upon expiration of the limitation period.
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