The Federal Ministry of Finance has presented a draft bill for the implementation of the DAC 7 directive. The draft also includes changes to external audits or operational audits.
With the so-called DAC 7 directive, the EU implements updates on the cooperation of administrative authorities in the field of taxation and the modernization of tax procedural law, explains the law firm MTR Rechtsanwälte. The directive is to be implemented into national law by the end of the year, and on July 12, 2022, the BMF has now presented a draft bill.
The new regulations also affect the conduct of external audits. They are to be accelerated by numerous changes in the Fiscal Code. Moreover, a ‘Law on the Duty to Report and the Automatic Exchange of Information by Reporting Platform Operators’ is to be created. Another point is the improvement of the automatic exchange of information through changes in the EU Mutual Assistance Act.
A central point is the acceleration of external audits. They should be able to start and conclude earlier. To achieve this, the draft bill foresees an expanded duty of cooperation for taxpayers. The auditors, in turn, should specify their examination focuses and hold interim discussions with the taxpayers.
It is planned, among other things, to limit the suspension of deadlines under § 171 para. 4 AO. The suspension of deadlines shall then be five years. The five-year period begins in the year of notification of the audit order.
It should also be possible to create binding partial conclusions during the ongoing audit. The aim is to establish legal certainty early.
A new sanction system is also to be introduced if taxpayers do not fulfill their duties of cooperation. For this, § 200a para. 1 AO will be newly introduced. If a qualified cooperation and submission request from the audit office is not complied with, a cooperation delay fee of 100 euros per day, but no more than 10,000 euros, can be demanded.
The law is to come into force on January 1, 2023. Taxpayers must prepare for several changes, especially concerning their duty of cooperation during audits. Lawyers experienced in tax law can provide advice.
