Court case IX R 6/23 – Court Ruling (Germany, 2024)

The parties involved are in dispute about the fact that the German tax office requires a copy of the rental agreements from the landlady (taxpayer) as part of an income tax return. The landlady is the data controller, the tenants are the data subjects and the tax office would be the recipient of the data. In the income tax returns for 2018 and 2019, the controller submitted her statements of the total rental income, depreciation, administrative and maintenance expenses for the respective property for its income from letting and leasing various properties. The tax office requested a copy of the rental agreements, service charge settlements and on claimed maintenance expenses from the controller. The controller submitted the gross and net rental income with the names of the tenants blacked out as well as the operating costs for the various apartments and documents on the maintenance expenses, but not the requested copies of the rental agreements and maintenance expenses. The data controller argued that the disclosure of the requested documents was not possible without the consent of the data subjects. Furthermore the tax office was not entitled to request the documents, as the rental agreements were not required to check the actual income. The tax office responded with a request for the rental agreements in question, referring to the duty of cooperation of the controller under the German Fiscal Code (Abgabenordnung - AO). The documents are necessary for the verification of the income data submitted by the controller. The tax office rejected an objection on its decision by the controller as unfounded and repeated the obligation to cooperate according to AO. The duty to cooperate includes in particular the complete and truthful disclosure of the facts relevant to taxation and the provision of evidence. The tax office may, at its own discretion, determine which evidence it deems necessary within the meaning of the relevant section of the AO. The tax office requires the