Tasks of a Tax Consultant
Tax consultants support their clients in all tax-related matters. Key tasks include preparing tax returns, advising on optimal tax structuring and tax optimization, bookkeeping, and representing clients before tax authorities and courts. They also provide advice on business management issues and assist with business start-ups.
Qualifications and Training (Ausbildung)
To become a tax consultant in Germany, one must pass a challenging examination. The prerequisites for admission to the examination are either a university degree focused on business or law and practical work experience or training as a tax clerk with subsequent several years of professional experience. The tax consultant examination is considered one of the most difficult exams in Germany.
Tax Consultant Fee Regulation
The remuneration of tax consultants in Germany is regulated by the Tax Consultant Fee Regulation (StBVV). This regulation specifies which fees may be charged for certain services. The amount of the fees depends on the respective object value as well as the effort and complexity of the work. In addition, tax consultants can make individual fee agreements, provided they remain within the legal framework.
Obligations and Liability
Tax consultants are subject to strict obligations. This includes the duty of confidentiality, which requires them to treat all information from their clients as confidential. They are also obliged to represent their clients’ interests comprehensively and protect them from tax disadvantages. If the tax consultant provides negligent or intentional incorrect advice, they are liable for the resulting damages. Therefore, professional liability insurance is mandatory for all tax consultants.
Difference Between Tax Consultants and Wage Tax Assistance Associations
Tax consultants are qualified to handle all tax matters comprehensively, while wage tax assistance associations may only advise employees, pensioners, and retirees on simple tax issues. Wage tax assistance associations are not allowed to advise commercial clients and are limited in their services to certain areas, such as preparing income tax returns and reviewing tax assessments.
Advantages of Tax Consultancy
Professional tax consultancy can be worthwhile, especially for businesses and self-employed individuals, but also for private individuals with complex income situations or special tax issues. Tax consultants are familiar with the current legal provisions and tax regulations and can ensure that clients utilize all opportunities for tax savings. They reduce the risk of errors in tax returns, which could lead to back payments or even criminal consequences.