Germany Sets a Poor Example: The Case of ATTAC in Light of Globally Closing Civic Spaces csis.org /blogs/international-consortium-closing-civic-space/germany-sets-poor-example-case-attac-light July 17, 2017 By Annika E. Poppe and Jonas Wolff A non-governmental organization (NGO) that is critical of the government’s actions in the country at hand receives a letter from the local tax office, indicating that its public-benefit status has been revoked on the grounds of its involvement in political activities. The decision involves 90 percent of the organization’s revenues, which, as a result, threatens its very existence. After a court has reviewed and closed the case in favor of the NGO, the central government intervenes, insisting that the judgment should be reviewed. For the time being, the organization’s public-benefit status has been revoked. This story sounds familiar to anyone acquainted with the recent trend of closing space around civil society worldwide. Since the early 2000s, some 60 governments worldwide have used legal, administrative, and extra- legal measures to limit the capacity, autonomy, and/or space of civil society actors in their respective countries. Russia, Egypt, and Ethiopia, along with many other countries in Africa, Asia, and Latin America, are much- discussed examples of the phenomenon of closing civic space. The United States, Israel, Poland, and Hungary are also sometimes included in the list of countries that restrict space for civil society. Germany, however, is rarely considered problematic when it comes to the protection of civic space, yet the story outlined above takes place in Germany. The NGO in question is the German branch of ATTAC, a network of organizations that describes itself as “an international movement working towards social, environmental, and democratic alternatives in the globalization process.” It is not here to suggest that Germany is – or might be – joining the group of countries around the world in which dissident organizations are harassed by tax investigations, spied on by intelligence services, criminally pursued by public prosecutors, or physically threatened by parastatal actors. However, the ATTAC case could seriously undermine the credibility of the German government that usually presents itself as an unconditional champion of the rights of freedom of assembly and association in Europe and around the world. Given that the ATTAC case has crucial similarities with the means and effects of much more severe restrictions elsewhere, it legitimizes the arguments of those who would gladly limit civil society actors to “non-political” forms of social engagement. Germany, and especially its federal government, is therefore sending a highly problematic signal to the world. The case of ATTAC Germany in the current global context For many years, the local tax office in Frankfurt recognized ATTAC Germany as a nonprofit organization serving public-benefit purposes without objection. In spring 2014, however, ATTAC received notice that its public-benefit status had been revoked retroactively as of the year 2010. In justifying this decision, the tax office argued that ATTAC pursues activities of political nature beyond its prescribed public-benefit purposes that, in line with Germany’s Fiscal Code, qualify it for the tax privileges. It cited ATTAC campaigns for financial market regulations, a tax on financial transactions (the so-called Tobin Tax), and a capital levy. As a consequence, the organization was no longer authorized to issue receipts for donations, and supporters could not deduct donations from their taxes, which in turn deters individuals’ contributions to ATTAC (information about the lawsuits and positions, and downloads of the various notifications and judgments – all in German – can be found here). 21 months later, the tax office rejected ATTAC’s appeal, and the organization filed a lawsuit. Finally, in November 2016, the Hessian Tax Court in Kassel ruled in favor of the organization, confirming the public-benefit nature of both the NGO’s statutes and its management. The court viewed ATTAC’s political activities as a legitimate means to reach its official objectives. An appeal was not permitted and the case appeared to be closed. However, the Federal Ministry of Finance intervened and instructed the local tax office to complain about the denial of appeal to the Federal Fiscal Court. Should an appeal be allowed, the proceedings could last three more years. Further, as long as no decision is made, ATTAC cannot issue any donation receipts. 1/3