Ne
ws

The Higher Administrative Court of Saarland (OVG Saarland) had to decide on the issue of trade-related reliability in cases of payment arrears and outstanding tax returns and advance tax payments (OVG Saarland, Decision of October 21, 2021 – 1 A 260/20).

The plaintiff was active in the construction industry. In 2014, proceedings to prohibit him from operating a business were initiated against him, which were repeatedly suspended due to partial payments. In 2018, further payment arrears arose, whereupon the plaintiff was prohibited from operating his business as well as any other commercial activity. The action against this decision was unsuccessful. The OVG dismissed the application for leave to appeal for lack of grounds.

To avoid the denial of trade-related reliability, payment deadlines should be met and tax filing deadlines should be observed. Since a trade-related prohibition is a predictive decision regarding reliability, the submission of a restructuring plan can positively influence the administrative decision.