Tax return help: Tips from the financial expert - Legal regulations and risk of fines of up to 5000 euros

Tax return help: Tips from the financial expert - Legal regulations and risk of fines of up to 5000 euros

According to a report by www.kreiszeitung.de, help with tax returns is strictly regulated, and violations can be punished with a fine of up to 5,000 euros. Only people and associations that are expressly authorized to do so are allowed to offer help with tax returns, such as tax advisors, income tax assistance associations, lawyers and auditors. In 2024, the federal government plans to relax the law so that certain close people can help with tax returns free of charge.

The possible effects of this strict regulation on the market and the financial industry are diverse. For one, those unable or unwilling to seek professional help may be looking for new, legal options to assist with their tax returns. This could result in increased demand for user-friendly tax programs or online resources. On the other hand, tax advisors and other professional service providers could benefit more from this regulation, as they are the only ones authorized to offer help with tax returns. This could lead to increased demand for their services.

In addition, the planned change in the law in 2024 could also have an impact on the financial industry. If certain related parties are allowed to help with tax returns free of charge, this could lead to a change in the business model of tax advisors and other professional service providers. They may need to adjust their services and prices to keep up with changes in the market and new legal requirements.

Overall, it is foreseeable that the strict regulations for help with tax returns, as well as the planned change in the law, could have a significant impact on the dynamics of the market and the financial sector in the coming years. It remains to be seen how the players in the industry will adapt to these developments and what new opportunities and challenges will arise as a result.