Steel

ADAC would have to pay tax on 70 percent of the contributions

Summary

After the allegations of tax debts, the ADAC could face significantly higher burdens in the future. “Up to 70 percent of the club contributions could be attributed to the breakdown assistance,” said chairman of the German Tax Union (DSTG), Thomas […]

.  An ADAC breakdown helper takes a jump start cable from his vehicle (source: dpa)

After the allegations of tax debts, the ADAC could face significantly higher burdens in the future. “Up to 70 percent of the club contributions could be attributed to the breakdown assistance,” said chairman of the German Tax Union (DSTG), Thomas Eigenhaler. They could thus be viewed as insurance benefits. The “Bild-Zeitung” had previously reported on it. According to its own statements, the ADAC has not yet paid any insurance tax on its contributions because these would be viewed as club benefits.

The taxable insurance benefits include, for example, breakdown assistance and accident protection, said Eigenhaler of “Bild”. For this, an insurance tax of 19 percent would have to be paid to the federal government. The DSTG represents civil servants and employees of the tax administration.

Almost 500 million euros will have to be paid in arrears

According to a report by the news magazine “Der Spiegel”, the club is threatened with an additional payment of around half a billion euros. The club had denied the allegations over the weekend. “So far there have been no complaints either with the ADAC as a club or with the ADAC insurance companies. The ADAC has behaved correctly so far. There can be no question of tax evasion, ”a spokesman said.

According to the auditors, the automobile club did not pay any insurance tax in the 2007 to 2009 financial years, although membership “establishes an insurance relationship that is relevant to insurance tax law”, reports “Spiegel”. For the following years, the experts from the BMF had also calculated an annual revenue of 67 million euros.

According to information from “Bild”, the process is now being investigated by the Federal Central Tax Office.