Legal

In contrast to salaried (balance sheet) accountants, the self-employed are subject to the Tax Advisory Act with regard to their permitted activities and advertising. This stipulates who is allowed to call themselves an accountant, which services may be provided and which activities are reserved for other professional groups (e.g. auditors, sworn accountants, lawyers and tax consultants).

The Tax Advisory Act also stipulates that business assistance in tax matters may only be provided by authorized groups of people (§ 2 StBerG). In addition, a distinction is made between limited and unlimited power to provide assistance. Accountants, accountants and tax specialists, on the other hand, fall under the exceptions to the prohibition of unauthorized assistance - provided they meet the requirements of Section 6 No. 4 of the StBerG.

These exceptions include, for example:

■ the submission of scientifically founded reports

■ performing mechanical operations in the keeping of books and records that are important for taxation

■ the booking of current business transactions, the current payroll and the preparation of the income tax declaration

So much for the wording of the law. This definition has been further specified over the years through case law, the following services are still permitted:

■ Business evaluation of the numerical material in the form of key figures

■ Assistance with setting up the bookkeeping that is irrelevant under tax law, for example by helping with the choice of the bookkeeping system, the devices to be used, the way in which the documents are accepted or the printing of the bookkeeping results

■ Assign current business transactions and issue booking instructions

Independent accountants and accountants, however, are not allowed to:

■ Preparation of the balance sheet, profit and loss account

■ Determination of profits through income / surplus calculation

■ preparing tax returns with the exception of advance income tax returns

■ Tax or legal advice