GERMANY Law and Practice Contributed by: Alexander Gottstein, MTR Legal Rechtsanwälte
Depending on the facts, additional offences under the Criminal Code ( Strafgesetzbuch , StGB) may also be relevant (eg, document forgery), but they apply along - side, not in place of, tax offence provisions. 6.3 Interaction Between Tax and Criminal Procedures Where indications of intentional tax offences arise, the tax administration typically involves its fines‑and‑crim - inal‑matters units ( Bußgeld‑ und Strafsachenstellen ) and, where appropriate, the tax investigation service ( Steuerfahndung ). Criminal prosecution is conducted by the public prosecutor’s office ( Staatsanwaltschaft ). Although tax assessment and criminal proceedings are formally separate, they are closely intertwined in practice (fact finding, evidence, procedural safe - guards). In practice, affected persons should seek specialised professional advice at an early stage. 7. Administrative Co-Operation 7.1 Legal Framework for Administrative Co- Operation Germany’s co-operation framework includes DTAs (in particular, information‑exchange articles), OECD and Council of Europe instruments, and EU rules on administrative co-operation (mutual assistance). Domestic implementing provisions specify proce - dures, competent authorities and formats. 7.2 Exchange of Information Clauses in Tax Agreements Information exchange may occur on request, spon - taneously, or automatically (eg, through the CRS). Scope and limits (including proportionality, purpose limitation and confidentiality) are determined by the relevant instrument and domestic implementing rules. Operational details are frequently set out in BMF guid - ance and BZSt notices. 7.3 Other Forms of International Tax Collaboration In addition to traditional mutual assistance, joint audits, co-operative compliance approaches and multilateral programmes have become increasingly important. Whether Germany participates in a par -
ticular collaborative format depends on the facts, the jurisdictions involved and the available legal basis.
8. Mutual Agreement Procedures and Arbitration 8.1 Availability and Legal Basis Mutual agreement procedures (MAPs) are available under DTAs and EU instruments. They are designed to eliminate taxation that is not in accordance with a treaty. In German domestic law, implementation of a MAP – also into final assessments – is primar - ily enabled through Section 175a AO. The competent Many DTAs provide a filing deadline of three years from the first notification of the measure that results (or is likely to result) in taxation not in accordance with the treaty. The trigger date is case-specific (eg, a tax assessment notice, a withholding measure, or an audit adjustment). Therefore, the precise deadline rule in the relevant DTA or EU procedure must be checked in each case. 8.3 Mandatory Binding Arbitration authority is typically the BZSt. 8.2 Application Deadlines Binding arbitration may be available under certain DTAs, under the EU Arbitration Convention and/or the EU dispute‑resolution framework. Access may be lim - ited – for instance, in cases involving criminal aspects or certain anti‑abuse situations – where the applicable instrument provides for such exclusions. The specific legal instrument (treaty protocol, EU regime, or MLI arbitration election) is decisive.
9. Dispute Prevention 9.1 Advance Pricing Agreements
Germany operates an advance pricing agreement (APA) programme administered by the BZSt. The legal basis is Section 89a AO, and the AEAO pro - vides detailed requirements on competence, appli - cation content, procedural steps, binding effect, co- operation duties, reporting and termination. Where the partner jurisdiction participates, bilateral or multilat -
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