NWB No. 35 of 30.08.2024
Be careful with terminations of mandates in the context of the final settlement of Corona economic aid
Stefan Ruppert
A tax advisor can terminate a client relationship at any time under the conditions of Section 627 of the German Civil Code (BGB). If there is no important reason for termination, however, the termination is subject to the restriction that the client can obtain the services elsewhere. A mandate should therefore not be terminated before important deadlines have expired or in a critical phase of the mandate processing. In addition, despite termination, the tax advisor is still obliged to carry out actions that cannot be postponed in the interests of the client. Particular caution and care is required when making the final settlements for the Corona economic aid in order to avoid undesirable legal consequences, possibly also criminal and professional consequences.
You can find the detailed article here.
The author first provides general information on the rights and obligations of the tax advisor when terminating a mandate. If the requirements of Section 627 of the German Civil Code are met, a mandate can be terminated without notice even if there is an important reason (see Section 626 of the German Civil Code). However, if the termination is made at an “inopportune time”, this can give rise to claims for damages against the tax advisor (Section 627 Paragraph 2 of the German Civil Code). The tax advisor is also entitled to a termination despite the termination…
