Germany: Obligation to disclose emails in tax audits (court decision)
Digital documents related to group transfer pricing must be stored separately; other transfer pricing insights that may affect businesses in Germany
The German Federal Fiscal Court (BFH) issued a decision confirming the obligation to disclose tax-relevant emails during external tax audits, but not a “complete email journal.” This decision aligns with administrative guidelines under Section 147 of the German Fiscal Code (AO).
The BFH held that emails containing tax-relevant information are considered commercial or business letters under Section 147 AO and must be disclosed if requested by tax authorities. Taxpayers have an initial qualification right, meaning they must identify and present tax-relevant emails independently. However, the tax authorities cannot demand a complete journal of all emails.
Digital documents related to group transfer pricing must be stored separately according to Section 147 AO. Emails and other documents that are particularly relevant for taxation in the context of transfer pricing must be retained and presented upon request, regardless of their format.
This ruling emphasizes the need for taxpayers to establish processes for identifying and storing tax-relevant emails, especially given the complexities of modern digital communication. The decision highlights the challenges taxpayers face in distinguishing between relevant and non-relevant emails and the importance of clear processes and responsibilities.
Read a December 2025 report* prepared by the KPMG member firm in Germany
Other KPMG “German Transfer Pricing Insights” concern:
- German cash pool participants in the focus of legislators and tax authorities
- Year-end adjustment quo vadis?
- Single source of truth for intercompany transactions: An automated transaction matrix