Tax Audits: Emails with Tax Relevance Can Be Requested

Germany's highest tax court has confirmed the right of tax auditors to request access to emails pertinent to taxation during audits. The ruling clarifies previous ambiguities regarding the extent of electronic data accessible to tax authorities.

The case involved a taxpayer's obligation to provide their emails to a tax auditor. The auditor had requested the entire email archive and logs pertaining to internal transfer pricing and group contracts. The taxpayer argued this demand was too broad and disproportionate.

The Federal Fiscal Court, following a decision by the Hamburg Fiscal Court, has determined that emails can be considered business correspondence subject to retention and disclosure obligations. Therefore, tax auditors may request all emails with tax relevance. However, a general email log, which would also include non-tax-related correspondence or require separate creation, cannot be demanded.

The decision highlights the digitization of tax audits. While taxpayers have the right to select only tax-relevant emails, this practically necessitates adequate technical systems to distinguish such communications from general correspondence.