The tax debt describes the tax that still has to be paid and at the same time the obligation to pay a certain tax. Unfortunately, tax debts are also particularly sensitive and unfortunately in many companies on the agenda. The tax liability is calculated at a fixed tax rate on a specific basis. For example, the tax is calculated on the basis of a company’s profits. The tax debt is managed by the tax office. If no timely payment is made, late payment surcharges can be called. In the further course, even imprisonment or seizure are possible, which are initiated by the tax office.
Tax debts and consequences
Yes, tax debts always have consequences and therefore everyone should be advised not to pay tax debts. For sufferers that can be extremely unpleasant. The amount of the additional payment usually comes with a tax assessment and this has it sometimes quite beautiful. Tradespeople often experience a really nasty surprise. Despite all this debt must be paid to the tax office, before all other debts. A back tax payment can even threaten the existence or economic existence of a company.
How do tax debts arise?
If you pay too little tax at the tax office in the previous billing cycle, you will have to deal with heavy back payments. If you do too much, you will of course receive refunds. If additional payments are required, the tax due must be paid into the account of the tax office. It is important to pay attention to the time limit granted by the tax office. Usually this is one month or three weeks. In case of default, late payment surcharges are required.
Possibilities for tax debts
Anyone who ignores the tax office will get into trouble sooner or later. In the case of tax debts, it is important to communicate first of all. After all, the tax office will not hesitate to freeze accounts and collect process fees. In general, however, the taxpayer can apply for a tax deferral and request a suspension of execution. The deferral is audited by the tax office and is uniformly regulated.
Individuals and businesses affected
In general, tax debts can affect private individuals and entrepreneurs, but usually it is the entrepreneur who has simply faltered or mismanaged. In case of difficulties, the tax office should be contacted directly, in some cases granting installment payments or a deferral.