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Data Protection for Tax Advisors
Data protection is one of the core responsibilities of tax advisors. In addition to professional confidentiality, strict regulations such as the GDPR and the German Federal Data Protection Act (BDSG) apply. Here you’ll learn which requirements are relevant for tax firms – and how heyData helps you implement data protection efficiently and in full compliance with the law.
Table of contents
Why Data Protection Is Essential for Tax Advisors
Tax advisors carry special responsibility when handling sensitive information. Beyond legal requirements, it’s crucial to protect client trust and avoid costly fines. This includes securing tax declarations, financial data, and health-related information.
An effective data protection strategy ensures that legal requirements are met in daily operations – for example, through secure document transfers and clearly defined access controls.
Our Services for Tax Firms
Data Protection Audit
Review of your current data protection status and identification of potential risks
Data Protection Documentation
Creation of all legally required documentation for your firm
External Data Protection Officer
Expert support tailored to the needs of tax advisors
Employee Training
Practical training on GDPR, confidentiality, and data security
Record of Processing Activities (ROPA)
Compliant documentation of all relevant data processing under Article 30 GDPR
Technical and Organisational Measures (TOM)
Implementation of security measures such as access controls, encryption, and data backups
Which Data Needs to Be Protected?
Client Data:
- Name, date of birth, address
- Tax number, social security number
- Financial and bank account details
- Information related to lifestyle and personal circumstance
Firm and Employee Data:
- Tax advisor license number, professional title
- Contact details of representatives and business partners
- Employee and applicant data
Does Your Firm Need a Data Protection Officer?
Not Required
Mandatory
No obligation
No legal requirement to appoint a DPO.
A DPO is legally required under the GDPR.
Criteria
Not required if fewer than 20 employees process personal data and the annual revenue is below €10 million.
Legally required if 20 or more employees process personal data or if the annual revenue exceeds €10 million.
How to Become GDPR-Compliant: Step-by-Step Guide
01
Initial Assessment and Audit
Analysis of your firm and identification of weak points
02
Documentation and Contracts
Creation of data protection policies, ROPA, and processor agreements
03
Technical and Organisational Measures
Implementation of security measures and staff training
04
Ongoing Support and Updates
Regular audits, adjustments to legal changes, and expert advice
Key Obligations Under the GDPR
Legal Requirements:
- Inform clients about data processing (duty to inform)
- Verify and document legal bases for processing
- Sign processor agreements with external service providers
- Ensure protection when transferring data to third countries
Practical Implementation in Daily Operations:
- Maintain a Record of Processing Activities (ROPA)
- Apply technical measures like encryption and access controls
- Provide regular staff training on data protection
- Follow retention periods and ensure regular data backups
Hear it From Our Customers
"heyData impressed us with their digital software solution and expertise. Like us, heyData is a digital pioneer in a rather traditional and less digital industry. heyData is a strong partner for the BRZ Group."
Markus Schobert
Head of Customer Service at BRZ Gruppe
"heyData is a great help for us and makes the topic of data protection really easy. We are very satisfied with the digital audit, the online training and the customer support."
Leonard von Kleist
CTO & Co-Founder at Hive Technologies GmbH
"I value this feature for its ability to simplify supplier risk assessment. It is an indispensable tool for anyone dealing with data compliance in the European Union and Switzerland."
Jan Stephan
Head of Legal Affairs at Learnship
"As a customer, we have only had good experiences with heyData's support and communication. Questions were answered in detail, responses were always prompt and personal 1-1 support is also no problem."
Roman Georgi
Director Of Customer Support at AMBOSS
“What sets heyData apart is its responsiveness and rapid implementation.”
Sandra Scherzer
Legal department at Bioland
"We always receive competent and prompt advice from heyData and have so far been able to find a satisfactory solution to every question relating to the GDPR or data protection in general."
Nikolai
CTO at Instaffo GmbH
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Book your free consultationFAQ
As a rule, the tax advisor is responsible for compliance with the GDPR. This also applies if the tax advisor processes the personal data on behalf of a third party, e.g. a company or a private individual. However, the tax advisor can be supported by an external data protection officer, such as the experts offered by heyData.
Tax consultants may only process personal data that is required to fulfill their professional duties. In particular, this includes data required to prepare tax returns, to audit annual financial statements and to advise clients.
Tax advisors must provide clients with comprehensive information about the processing of their personal data. To this end, they must provide clients with the following information in particular:
- the purposes of the data processing
- the categories of personal data that will be processed
- the recipients of the personal data
- the duration for which the personal data will be stored
- the rights of the clients
Tax advisors must guarantee clients the rights provided for in the GDPR. In particular, this includes the right to information, rectification, erasure, restriction of processing, objection and data portability.
When transferring personal data to third countries, tax advisors must ensure that there is an adequate level of protection for the data. This can be achieved by means of a contractual agreement with the recipient of the data or by applying a legal system in the third country that is comparable to the EU level of data protection.
In the event of breaches of the GDPR, tax advisors must inform the competent supervisory authorities. In some cases, they must also inform the data subjects.
Severe sanctions can be imposed for violations of the GDPR. For example, a fine of up to 20 million euros or 4% of the company's global annual turnover can be imposed.