Tax auditing in gastronomy business

For the tax authorities, catering and gastronomy businesses are considered as risk industries. In case of an external inspection according to § 193 AO (German general tax code), business owners should be prepared for the fact that tax auditors, specialized on catering and gastronomy businesses, will review all business documents for irregularities. The auditors are armed with various guidelines and key figures as well as special testing software (IDEA). If there are gaps in their bookkeeping or serious shortcomings, the exam is quickly over and the tax office is entitled to estimate profits. Since a tax audit generally takes place retroactively for up to three years, the total back payments for sales, income tax and, payroll taxes and social security contributions can quickly add up to a six-figured amounts.

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Common mistakes when taking over a gastronomy business in Germany

The gastronomy scene in Germany and especially in Berlin is highly dynamic and offers interesting business opportunities. The international appeal attracts people from all over the world. Our legal practice shows that entrepreneurs from abroad prefer taking over an existing gastronomy business - and adapting it to their needs and concepts afterwards - over starting a new business from zero. However, taking over a business raises a high number of legal risks that not every entrepreneur is aware of. The (non-exhaustive) list illuminates some of the more common mistakes and risks of entrepreneurs, who take over a gastronomy business in Germany.

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New supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from high-risk areas

Regulation (EU) 2017/821 of 17 May 2017 lays down major obligations to perform supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. While most of the regulations apply from 9 July 2017, other parts of the regulation, including the obligations to perform supply chain due diligence obligations, will apply from 1. January 2021. The regulation adopts major aspects of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The OECD Guidelines offer importers and others involved in commodity trade detailed policy recommendations on extraction, import and trade of raw materials and especially minerals originating from conflict-affected and high-risk Areas.

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Contact

FEIERABEND & POSPIESZNA Rechtsanwälte
Am Treptower Park 30
12435 Berlin

Tel.: +49 (0) 30 / 680 783 -75
Fax.: +49 (0) 30 / 680 783 -76
E-Mail: kontakt@fp-law.net