Deal with the tax office
To enhance the effectiveness of taxation, it is possible to reach an agreement that is binding on the parties involved, known as a “factual agreement” (tV).
A prerequisite is the existence of facts that can only be determined under difficult circumstances. The tV must relate to factual issues; it is not permissible for legal issues. A case of this nature recently came before the court. A taxpayer had negotiated a tV during a tax audit and subsequently sought to challenge the outcome. The business of his company involved collecting unsorted cash holdings, partially picking them up from customers, sorting them by currency type, and exchanging them. The plaintiff wanted his commission to be entirely exempt from sales tax as a money transfer service. In the actual agreement, a 50-50 split was agreed upon. Shortly thereafter, he no longer felt bound by the agreement and applied for complete exemption from sales tax.
Agreement Recognized as Valid
According to the judgment, which is not yet final, a binding agreement regarding the taxable portion of 50% of the turnover was nevertheless reached. The inclusion of the legal consequence (VAT liability) was permissible. Since every agreement on facts also affects the amount of tax, a clear distinction between permissible questions of fact and impermissible questions of law is not always possible.
