Peace with the Tax Office - Fewer Tax Lawsuits Than Ever

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2025 December 22 . 7:12 AM

1 min read

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Peace with the Tax Office - Fewer Tax Lawsuits Than Ever - Peace with the Tax Office - Fewer Tax Lawsuits Than Ever

The number of tax disputes in Germany has fallen sharply over the last 20 years. In 2005, the Federal Fiscal Court handled 3,403 cases, but by 2024, that figure had dropped to just 1,744. A similar decline has been seen across all 18 regional fiscal courts of first instance.

The reasons for the drop remain unclear, though experts suggest digitalisation plays a major role. Tax assessments now processed electronically contain fewer errors, leaving less room for legal challenges. At the same time, tax offices have adopted a more cooperative approach, working directly with taxpayers to settle disagreements before they escalate.

The financial risks and lengthy duration of tax disputes also discourage many from pursuing cases. In response, the German Association of Tax Advisers (BSTB) has proposed two key changes: a cost-free option to withdraw lawsuits up until the first hearing and lower thresholds for appeals. They also want to reintroduce the *Streitwertrevision*, an appeal mechanism based on the value in dispute. The federal government has already reduced the Federal Fiscal Court’s capacity by cutting one of its senates due to the dwindling caseload.

The steady decline in tax litigation reflects broader shifts in how disputes are handled. With fewer errors in digital assessments and a push for early resolutions, the need for court intervention has lessened. If the proposed reforms go ahead, the process could become even more accessible for taxpayers.