A survey conducted by the Süddeutsche Zeitung newspaper in the 16 federal states revealed that the number of tax audits had fallen by almost 60 per cent to just around 140,000. In 2024, the tax authorities employed a total of 12,359 tax auditors, almost ten per cent fewer than in 2015.
According to an official statement by the Federal Ministry of Finance in October 2024, 1.7 per cent of businesses were audited in 2023. The rate was significantly higher for large companies, at 17.8 per cent.
Regardless of the accuracy of the above figures, it can be stated in practice that not only is the number of audits declining, but also their scope. Particularly before the introduction of the new legal situation, transfer pricing documentation was often not even requested in a tax audit.
Depending on the degree of legal certainty required, we focus on advising and documenting areas of tax risk, thereby significantly and sustainably reducing our clients’ tax advisory costs. A fundamental component of our advisory approach is our fee sensitivity: due to our limited administrative and cost structure, we are able to offer advisory services at hourly rates of up to EUR 210, as well as discounted hourly rates in the first year of consultation or flat-rate fees. This is despite the fact that our professionals charged significantly higher rates in their previous positions at large law firms.
We take this statistically proven development into account through a risk-oriented consulting approach. Depending on the degree of legal certainty desired, we focus on advising and documenting tax risk areas, thereby significantly and sustainably reducing our clients’ tax consulting costs.
At the same time, we apply the entire range of international tax structuring and planning tools to both inbound and outbound investments, from exit taxation to the transfer of functions and risks, licensing models, family foundations and tax burden comparisons, etc.
Furthermore, we guarantee personal support from consistent contact persons and short processing times.
Our consulting goal is therefore a healthy mix of pragmatism/risk orientation, international tax planning versus affordable consulting fees for internationally operating companies.
In our opinion, tax consulting is not a matter of flat-rate planning models advertised on YouTube, which are only relevant to individual practical cases in exceptional circumstances.