Germany's Fiscal Court rules tax class change forces filing for married couples

The German Federal Fiscal Court (Bundesfinanzhof) ruled that married couples who switch to tax class III for the husband and V for the wife become obligated to submit an income‑tax return from the year the change takes effect. The court rejected the argument that the tax office automatically receives all wage data, stating that liability arises only when the authority has actually taken the information into account. Consequently, the normal four‑year assessment period can be extended to ten years, and failure to file may be treated as tax evasion by omission.

Tax experts warned that couples must not rely on electronic wage statements as a shield. “Automatisch übermittelte Daten bieten keinen Schutz,” said Daniela Karbe‑Geßler of the Taxpayers’ Association. “Wer zur Abgabe verpflichtet ist, muss selbst aktiv werden.” The decision especially affects families where one partner re‑enters employment after a period of no income.