Tax audit

A Betriebsprüfung (tax audit, field audit) is the examination of your tax affairs by the tax office – on site at your business or at your tax adviser's.

Who gets audited?

• Large businesses: almost continuously (seamless audits)
• Medium-sized businesses: on average every 15–20 years
• Small businesses: on average every 30+ years
• Sole traders: rather rarely – but possible at any time if there are anomalies

Typical triggers:

• Large deviations from sector averages
• Tax back payments/refunds that fluctuate sharply
• Control notifications from other tax offices
• Anonymous tip-offs (no joke!)
• Random selection (sample)

Procedure:

• Notice: at least 4 weeks in advance
• Duration: 1 day (small) to several weeks (large)
• Audit period: usually the last 3–4 years (up to 10 years if there's suspicion!)
• Auditor: sees EVERYTHING – bank statements, invoices, contracts, digital accounts

Your rights:

• Request a postponement for good reason
• Your tax adviser may be present
• Right to refuse to testify for relatives
• Objection to the audit report (1-month deadline)

Result:

• Usually: tax back payment + 0.5% interest per month (6%/year!)
• Only in cases of intent: tax criminal proceedings