Netherlands' Offshore Financial Centers

In a bid to streamline the tax assessment process and provide relief for all parties involved, the Finance Minister of Hesse, Alexander Lorz, has announced the launch of a pilot project named "the tax office is now making your tax return" in Kassel. This initiative is inspired by similar initiatives in other European countries, such as Sweden.

The project aims to have standard tax returns generated automatically and digitally by tax experts. This means that the taxpayer only needs to check the proposal for accuracy. The project is intended to shift the focus of tax offices from standard tax cases to complex cases with high stakes, where tax law professionals have been slipping billions past the state treasury due to insufficient intensive checks.

The tax data reported directly by employers can be easily incorporated into the proposal for the tax assessment. If delinquent taxpayers in Hesse who missed the deadline (31st July in Frankfurt) accept this proposal, the matter will be settled. Some of these letters will not be reminders, but proposals for the completed tax assessment.

For the pilot project, 6,000 Annex N laggards in Kassel are involved. If they add further information, income, or forms, the process will be digital and via the Elster tax portal. The project is a response to the issue of tax avoidance experts exploiting loopholes in complex cases.

By automating the tax return process, the project aims to reduce the number of instances where tax law professionals slip billions past the state treasury. It is also an attempt to make a better place for taxpayers who follow the rules, even if not punctually. Delinquent taxpayers who missed the deadline can expect a letter from the tax office, which may not be a reminder but a proposal for the completed tax assessment.

This innovative approach to tax declarations is expected to provide significant relief for all parties involved, making the tax process more efficient and less stressful for everyone.