Hesse witnesses the execution of a tax declaration project by the local tax authority - Tax authorities initiate the tax declaration project in Hesse
Automated Income Tax Assessments to Be Tested in Hesse
In a significant move towards modernising tax administration, the Hesse region is set to launch an income tax pilot project. The initiative, named "Income Tax: The Tax Office Prepares the Tax Return," will see around 6,000 taxpayers in Kassel receive an automatic proposed income tax assessment from their local tax office in 2025 [1].
The proposal is based on data that the tax office already holds due to mandatory reporting laws, including information on wages, pensions, and insurance [1]. The taxpayers will receive the proposal by the end of August 2025, and if they agree with it, they will not need to submit a separate tax return. After four weeks, the proposed assessment will automatically become the official tax assessment [1].
However, it's important to note that if the proposal does not include all income for 2024, taxpayers must still file a full tax return [1]. The prerequisite for the pilot project is that the respective taxpayer is obligated to submit an income tax return and is not represented or advised in tax matters [1].
The project aims to simplify the tax filing process for citizens and improve administrative efficiency. Hessian Finance Minister, Alexander Lorz, sees this method as a next step towards a more citizen-friendly tax administration [1]. The project is currently in its initial rollout phase for the 2024 tax year, and the results will likely inform future broader implementation or adjustments [1].
If successful, the program could save resources for the tax office and relieve taxpayers. Joachim Papendick, chairman of the Bund der Steuerzahler Hessen, sees the project as a step in the right direction [1]. Florian Köbler, federal chairman of the German Tax Union, believes that the project could allow tax officials to focus on complex cases [1].
The project presentation was attended by Finance Minister Alexander Lorz (CDU) in Wiesbaden [1]. However, it's worth mentioning that not everyone in Germany is obligated to submit an income tax return [1]. It is still possible to submit a self-prepared income tax return.
More joint steps from the federal government and other states are needed to fully implement the agency's processing of tax returns on a large scale [1]. The German Tax Union welcomes the project as an important step towards a modern, citizen-friendly tax administration [1].
In conclusion, the income tax pilot project in Hesse represents a significant step towards a more efficient and user-friendly tax system. The results of the pilot project will be closely watched, with hopes that it could pave the way for broader implementation in the future.
References: [1] Source for the information provided in the article.
- The automated income tax assessment pilot project in Hesse showcases an effort to modernize tax administration, aligning with the thrust of EC countries towards employing technology in finance and business.
- If successful, this project, which aims to simplify the tax filing process, could influence employment policy changes in other regions, as it potentially allows tax officials to focus more resources on complex cases.
