Every year, many citizens in this country submit their tax returns. But the tax office not only demands taxes, it also collects a lot of data.
Every second employee in Germany submits his tax return to the tax office. But what does the tax office know about the citizens? TECHBOOK has at Income Tax Assistance Association “Vereinigte Lohnsteuerhilfe e. V.” and a lawyer.
Electronic transmission of data
Most of the data is now transmitted digitally. The tax office makes this possible online via its “Elster” portal. This has been particularly popular since January 2013 with the introduction of “ELStAM”, the electronic wage tax deduction features. “The introduction also meant the end of an era, because the ELStAM replaced the income tax card made of paper. That’s why the ELStAM are now often referred to as the ‘electronic wage tax card’,” explains Christina Georgiadis from the wage tax assistance association.
The tax office collects this data
“Ultimately, all data that reveal information about income and wealth is relevant. Accordingly, the German tax authorities process personal data on a large scale and also have an enormous amount of information from numerous different sources, including third parties,” explains lawyer Christian Solmecke, who specializes in advising the Internet and IT industry.
The tax office uses the following data:
- the personal identification number
- the tax number
- the contact details (first and last name, address, date and place of birth, e-mail address and telephone number)
- marital status
- the job
- the religious affiliation
- health and long-term care insurance contributions
- the contributions to the Rürup or Riester pension
- the employer’s data on wages
- the data from banks, such as capital gains exempt from capital gains tax deduction
How long may the data be stored?
From a legal point of view, data protection takes second place to the state’s interest in seamless taxation. Even the relatively new General Data Protection Regulation (GDPR) would not change that. But how long does the tax office store my data? “Personal data are stored for as long as they are required for the taxation process,” says attorney Solmecke. The tax limitation periods apply as the basis for this.
The tax authority has an obligation to inform the data subject if it collects or intends to process personal data about this person. “However, these information obligations do not exist if and to the extent that the person concerned already has the information. This can be assumed, for example, if a general information letter has been sent in accordance with Section 32d (2) of the Fiscal Code with reference to an information sheet published, for example on the Internet. In these cases, the people are not informed personally, but the information can be viewed by anyone on the Internet,” says attorney Solmecke.
Can the tax office access my accounts?
Yes, the tax office can access your accounts and retrieve the data there, like that Income tax assistance association on the website communicates. And that’s not new, since 2005 the tax office has had the opportunity to request account access. The tax office is entitled to do this if a taxable consumer cannot or does not want to provide any information about their own income. This law has enabled the government to make tax evasion significantly more difficult. In addition to the tax office, other authorities may also access accounts such as customs authorities or the job center. The special feature: If an authority starts an account query, the banks must not be informed. In addition, the tax office only receives certain data and is not allowed to query the account balance or the transactions on the account, for example.
Can I take action against the disclosure of my data?
Data stated in the tax return are subject to tax secrecy. That means: “As a consumer, I don’t have to fear any disadvantages,” says Christina Georgiadis from the income tax assistance association. Data that could be used to pay less tax should under no circumstances be withheld from the tax office. “This ‘data protection’ costs money. Hiding data about taxable income is called tax evasion. This is a criminal offense and can cost not only money but also freedom. So it’s not worth it either,” says Georgiadis.
Can I still do something against the use of my data? The persons affected by the data processing have various rights. The data subject has the right to request confirmation from the responsible financial authority as to whether personal data is being processed by the financial authority. If this is the case, you have a right to information. But even here there are numerous exceptions. For example, there is no right to information if this would jeopardize public safety or order, or if the authority could no longer properly carry out its duties,” explains Solmecke. In addition, data subjects have the right to request the responsible financial authority to correct incorrect personal data concerning them without delay. You can also request that the responsible financial authority delete the relevant personal data immediately. “But: The right to deletion and the obligation to delete does not always exist if processing by the tax authorities is necessary,” says Christian Solmecke.
Does digitization also pose risks for the tax office?
More and more people are using the ELSTER online tax office. Switching to ELStAM has simplified many procedures. “This is necessary, for example, when changing the tax class or when registering a child allowance. Anyone who gets married or leaves the church, for example, still does so in the city or municipality’s citizens’ office, but the city or municipality administration now forwards the data electronically directly to the tax authorities. This not only saves time, but also effort,” says Christina Georgiadis.
But there are also potential downsides. Above all, data security is an important issue. “Professional cybercriminals are often one step ahead of the authorities. Increasing digitization therefore always harbors the risk of data theft,” points out Christian Solmecke. In addition, increasing digitization is also leading to job cuts at the Treasury. This too can have negative consequences. “Fewer and fewer tax officials have to check more and more tax returns, which inevitably leads to errors. Time and again, electronic reports are accepted without being checked, without adequately informing the taxpayer,” says Solmecke.
You can do everything you need to know about the tax assessment here read.