Finanzgerichte

Finanzgerichte are the state-level courts of the German judiciary responsible for deciding disputes arising from tax law. They form part of the ordinary jurisdiction and typically act as the first instance for tax-related litigation. Decisions of the Finanzgerichte can be appealed on points of law to the Bundesfinanzhof, the Federal Fiscal Court, which is the highest court for taxation and customs matters in Germany.

The jurisdiction of the Finanzgerichte covers a broad spectrum of tax matters, including income tax, corporate tax, trade tax, value-added tax, real estate transfer tax, inheritance tax, and related penalties or administrative measures. They review challenges to tax assessments, notices and other tax-related acts by the tax authorities, as well as procedural issues arising in tax disputes. Proceedings are conducted under the rules of the Finanzgerichtsbarkeit and the Finanzgerichtordnung (FGO), in German, and follow standard civil proceedings adapted to tax cases.

In terms of organization, each Finanzgericht operates within the federal states and is composed of several senates (chambers) that decide cases. The courts work independently within the framework of the rule of law and contribute to the uniform application of tax law through their jurisprudence, which is then interpreted by the Bundesfinanzhof for the national standard.

The Finanzgerichte thus play a central role in German tax justice by providing judicial review of tax administration actions and by ensuring legal certainty in tax matters. They form the essential intermediate layer between the tax authorities and the Federal Fiscal Court, which settles questions of law on appeal.