Is your tax CMS fit for an audit by the tax authorities?

In the past, tax auditors sometimes requested Tax CMS documents from the audited companies at the beginning of an audit. With Art. 97 Section 38 Introductory Act to the Fiscal Code (Einführungsgesetz zur Abgabenordnung, EGAO), this procedure was put on a "legal footing". Within the scope of a tax audit, Tax CMS can be checked for their effectiveness and binding commitments for future audit relief can be made.

A Tax CMS is considered effective if there is no or only an unremarkable tax risk. For this a Tax CMS has to demonstrably fulfil the requirements of the jurisdiction and the tax authorities for proper organisation and supervision within the meaning of Section 130 Administrative Offences Act (Gesetz über Ordnungswidrigkeiten, OWiG).

Therefore, every company should have sufficient documentation of a Tax CMS that meets these requirements ready for the next tax audit. We will be happy to assist you in assessing whether these requirements are met and how any deficits can be eliminated.

Published: April 2023