"Lindner could make some headway on taxes".

Melchior Neumann is a co-initiator of Kontist Steuerberatung and frustrated by the privileges of the tax consulting industry. In an interview, he takes an all-out swing - and hopes for the finance minister.

With Kontist, Melchior Neumann wants to simplify taxes for the self-employed, but he says he is frustrated by lobbying associations, tax consultants and finance ministers. Too slow, too enamored with the status quo, too ponderous: the trained tax clerk is familiar with many prejudices about his guild and says that the vast majority of them are true. In an interview, he talks about the disadvantage of taxtech companies, why legaltech is so much further ahead, and what he expects from Finance Minister Christian Lindner.

Mr. Neumann, everyone knows about fintech and legaltech. With Kontist, you want to do taxtech, but somehow the industry isn't really taking off. What's going on there?

I get this question from friends and acquaintances all the time. I can tell you relatively quickly what's going on: banks and lawyers are more open to innovation and digital solutions in their field. Many tax consultants still see digitization and technology as a threat rather than an opportunity.

What do they attribute this to?

There are a lot of things. Let me give you just one example: the law in the EU should actually provide for freedom of services. This means that French or Spanish tax consultants would be allowed to offer their services in Germany, and suddenly there would be a lot of competition for clients. But tax consultants are simply dragging their feet on implementing such a freedom for all eternity - or at least until retirement.

Tax consultants like to keep the status quo until they retire, at least the older ones among them

Melchior Neumann, accountant

Why do you think that is?

Tax consultants in Germany have a margin secured by the state; the statutory remuneration ordinance guarantees them that. To put it very simply, if it takes them three hours to do something instead of just one hour, they earn more money. This remuneration is a huge pain. Tax consultants therefore like to keep the status quo until they retire, at least the older ones among them. When I talk to young colleagues, they are often overwhelmed by all the tasks that only they are allowed to do.

You're talking about the reserved tasks that, by law, only tax consultants are allowed to perform.

Exactly. This includes, for example, that only they, as service providers, are allowed to submit a VAT advance return or make the tax return, unless the entrepreneur does it himself right away. If we as a tax app do the advance VAT return, then we do everything automatically. But we are not allowed, even though we can, to fully automate it. So we interrupt our automation and press a button manually, because only a tax consultant is allowed to do this task. That's a completely crazy system.

The tax accountants' lobbying group won't like to hear that, but for crying out loud: why don't you throw out some reservation tasks?

Melchior Neumann, Accountant

What do you propose?

The lobbying association of tax consultants won't like to hear this, but what the heck: why don't you throw out a few reserved tasks? There's no point in tax consultants constantly complaining that they're overloaded with all the tasks, that only they should continue to be allowed to do these tasks. Even if I, as a tax clerk, knew what you have to do with your taxes, I wouldn't be allowed to tell you, because I would then be working as a tax consultant. This would help you, help me and the tax consultant would have less work. The same applies, of course, to a fully automated solution. But that's not what the legislator wants.

Finance Minister Christian Lindner could make some headway with taxes.

Melchior Neumann, Kontist

Legislators are afraid that tax returns might be wrong, and who would then be liable?

Quite honestly: We would gladly assume the risk. In 98 percent of all cases, there is no additional payment in any case, and if there is, it is often not very high for the self-employed people we serve. Statistically, they are audited every 90 to 100 years and have a low additional payment. It's not like that's a big liability risk, which we'd be happy to take. If we were allowed, I would offer the service: Pay us X a month and we'll pay your back taxes if you make a mistake in the event of an audit. Unfortunately, that's not allowed by law.

Do you expect support from politicians for startups like Kontist in the current legislative period?

Finance Minister Christian Lindner could do a number on taxes. I think he would also like people to remember him as a tax simplifier. But then the powerful association of tax consultants would be at the door again and say: We can't do it that way. They would never propose something that could be done without a tax advisor, even if it would be better for a lot of people. I don't want to hold that against them, because that's what a lobbying association has to do. But it doesn't help us as a start-up or the people who spend hundreds of euros on a tax advisor who is totally overworked. We have to clean up that mess.

Personal details: Melchior Neumann is 33 years old and co-initiator of Kontist Steuerberatung mbH in Berlin. After training as a tax clerk, he worked for KPMG and subsequently advised companies such as felix1, Lexoffice, Debitoor and Klarna. Nine years ago, Melchior Neumann launched the portal steuerazubi.de.