ECJ rules on sending a tax return to the wrong address

How high is the loss if the tax return is sent to the wrong address?
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It's annoying when a letter is sent to the wrong address. It becomes problematic if it is a tax return and the wrong recipient also opens the letter by mistake. The ECJ addressed various legal aspects in its ruling of 20.06.2024 (Case C-590/22).

Tax consultant sends tax return to wrong address

Two former clients of a tax consultancy firm have filed a lawsuit. Although they informed their tax advisor of the change of address, the tax return for 2019 was sent to the old address. The new resident had opened the envelope by mistake and then informed the two of them.

In the main proceedings, the two plaintiffs brought an action before the Wesel Local Court for compensation for non-material damage pursuant to Article 82(1) of the German Civil Code. GDPR sued. The damage caused to them by the disclosure of their personal data to Third They have estimated the damage at 15,000 euros.

The Wesel Local Court decided to stay the proceedings and referred several questions to the ECJ for a preliminary ruling.

Basis for claims for damages according to GDPR

The ECJ (Third Chamber) dealt in its decision with essential aspects of Art. 82, which provides for the right to compensation in the event of violations of the GDPR regulates.

Link tip: ECJ judgment Case C-590/22

The main points of the judgment are:

  1. Basis for claims for damages: A mere Infringement against the GDPR is not sufficient to justify a claim for damages. The affected The person must prove that the Infringement material or immaterial damage has occurred. However, damage does not have to reach a certain level of severity in order to be eligible for compensation.

  2. Intangible damage: The mere fear that personal data unlawfully disclosed may be sufficient to justify a claim for compensation for non-material damage, provided that this fear and its negative consequences are properly proven.

  3. Assessment of damagesThe rules applicable to the setting of fines pursuant to Article 83 GDPR criteria are not applicable to the assessment of damages under Article 82. The claim for damages is not intended to fulfill a deterrent function, but merely to provide full and effective compensation for the actual damage suffered.

  4. National legislation: When assessing damages, infringements of national provisions that relate to the protection of personal data but do not serve to enforce the provisions of the GDPR must be taken into account. GDPR not to be taken into account.

Reading tip: ECJ ruling on the Data retention

The ECJ ruling emphasizes the need for data protection violations to cause demonstrable damage in order to lead to claims for damages. A mere Infringement against the GDPR is not enough.

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