No right of access to tax files for the preparation of private law claims against third parties
In its judgment of April 18, 2024 (Case No.: IX R 21/22), the Federal Fiscal Court (BFH) ruled that third parties generally have no right to access another person’s tax files if such access is sought to review or enforce potential claims for damages against a third party. The decision clarifies the scope of the right to inspect files in the tax context and is relevant for all parties confronted with claims related to tax matters.
Source: Federal Fiscal Court, Judgment of 18.04.2024, IX R 21/22.
Facts and basis of the decision
In the underlying case, a plaintiff sought access to tax files in order to obtain information which, according to his own account, was to serve the assertion of a potential claim for damages against a third party. The tax authority denied access, referring to the protection of personal data and tax secrecy. As a result, the BFH was asked to decide whether, in such cases, a legitimate interest for file inspection within the meaning of the Fiscal Code (AO) can be assumed at all.
Tax secrecy and data protection considerations
Applicability of tax secrecy
Tax secrecy under Section 30 AO obliges tax authorities to treat personal tax information confidentially. This applies both in the interests of the affected taxpayer and to safeguard trust in the tax system. Disclosure of data to outsiders is only permissible in narrowly defined exceptional cases, which regularly require a direct connection with an ongoing tax procedure or a legitimate interest of the applicant in the specific administrative procedure.
Data protection and personal rights
In addition, the provisions of data protection law, in particular the requirements of the General Data Protection Regulation (GDPR), apply. Disclosure of tax files affects the right to informational self-determination of the taxpayer concerned; there is an increased interest in protecting sensitive tax data from being disclosed to third parties.
Scope of the right of access to files under Section 30 AO and relevant ancillary laws
Distinction from access to files in formal procedures
Access to files by third parties is generally only permissible if there is a direct connection to one’s own legal interest within the framework of an ongoing tax procedure. In the present case, however, the request to inspect the files served only to prepare civil claims for damages outside the scope of tax law. The inclusion of tax files to support private legal disputes is expressly not covered by Section 30 AO.
No “general interest in clarification”
The BFH clarified that a general interest in clarification or enforcement in civil law—for example, in examining claims for damages against third parties—does not suffice to extend the tax right of access. Nor does a possible impossibility to substantiate the claim without knowledge from the tax files change that outcome.
Implications and practical significance of the decision
Strengthening the protection of privacy and data
The BFH’s decision underscores the high level of protection required for personal fiscal information. It prevents tax files from becoming a general information tool in private law disputes. Ultimately, this serves not only the individual taxpayer, but also the functioning of the tax system as a whole.
Limitation of third-party information access rights
For companies, investors, or individuals, this ruling means that tax information may generally only be disclosed following prior explicit release from confidentiality obligations or within the framework of specifically regulated exceptional cases. The tax procedure thus remains largely insulated from private law information regimes.
Significance for commercial law issues
For clients with complex commercial law issues, particularly in the context of corporate or capital markets disputes, the ruling is of considerable significance: In cases where claims for damages are at stake, research in this regard may not generally be supported by accessing third-party tax files, unless a special provision applies.
Conclusion
The Federal Fiscal Court’s decision highlights the strict thresholds for inspecting tax files outside tax proceedings. In this way, personal rights and tax secrecy are further significantly strengthened, even in contexts relevant to commercial law. Those seeking legal clarification on matters related to tax issues should have the current requirements carefully reviewed.
For in-depth legal questions and a sound assessment of individual concerns, the Rechtsanwalt at MTR Legal are pleased to assist you as your point of contact.
