Peace with the Tax Office - Fewer Tax Lawsuits Than Ever - Peace with the Tax Office - Fewer Tax Lawsuits Than Ever
Tax disputes in Germany have dropped sharply over the past 20 years. Last year, the Federal Fiscal Court handled barely half the number of cases it did two decades ago. The decline appears linked to digital improvements and changes in how tax offices interact with citizens and businesses.
The fall in tax litigation is evident across all levels of the court system. Regional fiscal courts, which handle first-instance cases, report a similar downward trend. Even the Federal Fiscal Court, Germanyâs highest tax tribunal, has seen its workload shrink so much that one of its senates was abolished.
Legal experts note that fewer people now challenge tax assessments in court. Many are put off by the high costs and long wait times involved in litigation. At the same time, tax offices are working more closely with taxpayers to resolve disagreements before they reach the courts. Tax advisor groups are pushing for reforms to make appeals more accessible. They want a free option to withdraw lawsuits and lower thresholds for filing appeals. Some also argue for reintroducing the *Streitwertrevision*, a rule that once allowed taxpayers to take smaller-value disputes to the Federal Fiscal Court. Despite the drop in cases, experts still stress the importance of ensuring everyone can contest unfair tax decisions.
The steady decline in tax disputes reflects broader changes in Germanyâs tax system. Digitalisation has cut errors in returns, while courts and tax offices now prioritise early settlements. Yet calls for cheaper and simpler appeals suggest that access to justice remains a concern for many taxpayers.
