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

Published by Uma Rajagopal

Posted on October 6, 2022

1 min read

· Last updated: February 3, 2026

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Gas flames from a burner illustrating energy crisis impacts on households - Global Banking & Finance Review
The image shows flames from a gas burner in a home, highlighting the energy crisis affecting German households and firms. This visual emphasizes the urgent need for leniency from tax authorities amid rising energy costs.
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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 […]

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)

Frequently Asked Questions

What is tax leniency?
Tax leniency refers to the flexibility shown by tax authorities towards taxpayers, allowing them to defer payments or adjust obligations due to special circumstances, such as economic hardship.
What is an enforcement measure?
An enforcement measure is an action taken by tax authorities to ensure compliance with tax laws, which may include penalties, audits, or legal actions against non-compliant taxpayers.
What is an advance payment in taxation?
An advance payment in taxation is a prepayment made towards a taxpayer's future tax liability, often based on estimated income or profits for the current tax year.

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