Lawsuit Against Crypto Taxation in Germany

Lawsuit Against Crypto Taxation in Germany

Taxes on crypto profits: take your chances in court!

Whether taxes have to be paid on cryptocurrencies has not yet been clarified. Nevertheless, honest crypto investors who have declared their profits in their tax return are receiving mail from the German tax office. In view of the high tax demands, many people are wondering whether it makes sense to take action against tax office notices and lodge an appeal or even take legal action in the tax court.

Lawsuit Crypto Tax Germany | Law Firm

Many unanswered questions about crypto taxation

In addition to the amount of tax, many crypto investors in Germany are bothered by the fact that they have to pay taxes, although there are still many unanswered questions. For example, it is highly controversial whether the taxation of cryptocurrencies violates the German constitution. Because the tax office has no way of detecting tax evaders, honest taxpayers are at a disadvantage.

However, other questions also arise:

Our recommendation: lodge an appeal against a tax assessment notice

A tax assessment can only be changed in a small number of legally defined cases. Once the objection period of one month has expired, crypto investors can generally no longer benefit from favorable rulings. To prevent this, it makes sense to lodge an appeal in good time. This is the only way for investors to protect their rights.

One-month deadline for appealing to the tax court

In our experience, the tax authorities usually stick to their opinion and reject the objection. The crucial question is then whether it is worth bringing an action before the tax court. Here, too, there is only one month to clarify this question. After that, an appeal is no longer possible. Crypto investors must therefore carefully weigh up whether they want to pay the taxes or go to court.

Fundamental BFH ruling on cryptocurrencies is expected

In the meantime, several tax courts have already dealt with cryptocurrencies in Germany. To the regret of many crypto investors, the most recent rulings of the tax courts (see Baden-Württemberg tax court, ruling of June 11, 2021, case no. 5 K 1996/19; Cologne tax court, ruling of November 25, 2021, case no. 14 K 1178/20) show that cryptocurrencies can be taxed.

However, this view has not yet been confirmed by the Federal Fiscal Court (Bundesfinanzhof, BFH) and may well be called into question. There are still good reasons to reject the taxation of cryptocurrencies, contrary to the latest developments in case law.

Until the BFH has finally clarified the key legal issues regarding the taxation of cryptocurrencies, investors have the option of lodging an appeal against their tax assessment notice, suspending the proceedings and (for the time being) not paying any tax at all. Whether taxpayers should make use of this option is a question of the specific individual case. All potential risks must always be weighed up. Prior professional advice from a tax consultant or lawyer is therefore recommended in all cases.

What we can do for you

  • We check your tax assessment notice and advise you on the chances of success in the event of an appeal or legal action.
  • We lodge an appeal, apply for a stay of execution or suspend the proceedings so that you do not have to pay taxes until later.
  • We represent your rights in court - nationwide and at any time.
  • We take into account all the technical particularities of your case. Benefit from our many years of expertise in crypto taxes.

Individual check at a fixed price!

Our experts support you with tailor-made solutions or tried-and-tested samples at a fixed price. Feel free to contact us!

Contact

Do you need advice on the taxation of cryptocurrencies in Germany? Our crypto tax experts will be happy to advise you! Please fill out our contact form for this purpose.

Contact Form

Your attorney for court proceedings on crypto taxation in Gemany

Are you dissatisfied with the tax assessment from your tax office in Germany? We will lodge an objection for you and, if necessary, take legal action against your income tax assessment.

The easiest way to reach your experts for the taxation of cryptocurrencies is by e-mail (info@winheller.com), by telephone (+49 69 76 75 77 85 28) or via our contact form for the taxation of cryptocurrencies. Do not hesitate to contact us with your questions.