Are you not satisfied with your tax advisor and do you think you have found someone better? Or have your requirements for tax advice changed and you want to switch to a firm whose profile is more tailored to you? Then you should not hesitate to terminate your contract with your current tax advisor and switch to the new consulting firm. You can terminate your cooperation at any time, but it is sensible to switch after completing an order to avoid double costs. Tax advisors are obliged to hand over important documents so that a smooth transition is possible.
When can you change tax advisors and does this incur any costs? Are there deadlines to be observed when changing tax advisors and how are my tax documents handed over? This guide explains what you need to pay attention to when terminating your tax advisor and changing tax office.
When should I change my tax advisor?
There can be many reasons why you want to change your tax advisor: if you have made a change in your career or personal life, the area of expertise of your previous tax advisor may no longer exactly match your requirements. Perhaps you have simply moved house and do not want to travel far.
However, you should also consider changing tax offices if you are simply dissatisfied with the work or the working environment of your consultant : common points of criticism are the difficulty of reaching them by telephone or long waiting times when making appointments, but also poor communication and a lack of transparency, which can quickly lead to you being unpleasantly surprised by demands for additional payments.
Legal basis for a change of tax advisor
According to Section 627 of the Federal Code, you can terminate your tax consultancy contract at any time, unless you have explicitly agreed otherwise in the contract. However, you must pay the corresponding partial fee for parts of outstanding orders that have already been completed, even if you terminate the contract.
When is the best time to change tax advisor?
In general, it is advisable to terminate your cooperation with your old tax advisor if they are not currently handling any matters for you. For example, it is not a good idea to change tax advisors while they are preparing your tax return or annual financial statements. Otherwise, you would have to pay your former tax advisor a proportion of the work they have already started and also pay your new tax advisor a fee. If you have commissioned your tax office to carry out a regular task, such as preparing your monthly accounts, the easiest thing to do is to terminate your contract and change tax advisors at the end of the month.
What happens to my documents with my old tax advisor?
According to Section 66 of the Tax Advisory Act, your tax advisor is obliged to keep your files for up to ten years. If you decide to commission another tax office to handle your affairs, you can request that your previous advisor release your documents. The old tax advisor must comply with this request, provided there are no outstanding invoices.
The files include, for example, all original receipts and contracts, tax returns, personnel accounting documents, as well as balance sheets and annual financial statements. Your old tax advisor is obliged to facilitate a smooth change of tax advisor and to be cooperative with his colleagues. Communication with third parties and copies of documents are not included in the files; these do not have to be handed over. Most tax-relevant information is available to the tax advisor electronically. Since the DATEV interface is used by most firms to exchange this tax data, such data can be transmitted electronically without any problems.
Is the tax office affected by the change of tax advisor?
If you have hired a tax advisor to assist you with tax matters, you have usually also given them a power of attorney to represent you at the tax office. If you terminate your contract or change tax advisors, you simply have to revoke this power of attorney. This is a simple formal application, but you can also get help with this from your new tax advisor.
tax advisor termination
Working with a tax advisor does not always have to be replaced by a contract with another advisor; you can also decide to work without a tax advisor at all. A common reason is retirement from active working life or ending your entrepreneurial activity and becoming an employee. Such changes in your life can significantly reduce your requirements for tax advice, so that you only have to submit an annual tax return, for example, but are no longer responsible for bookkeeping. Or, by giving up self-employment, you can use the services of a tax assistance association, which may be cheaper than a tax advisor.
However, terminating a tax advisor's contract is largely the same as changing tax advisors : you also have the right to demand the release of your files and you should also revoke the power of attorney with your tax office.
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