The Supreme Tax Court has granted a stay of execution because of doubt as to whether the interest limitation rule meets the constitutional requirement of equal treatment of like matters.
Tax & Legal
The Supreme Tax Court has held that an employer’s subsidy to a commercial caterer charged with running the staff canteen is a taxable supply in respect of a free-of-charge employee benefit. There is therefore no input tax deduction.
The Supreme Tax Court has held that the application of the pre-2008 “thin capital” rule to disallow interest on related party finance breaches the discrimination prohibition of double tax treaties.
Energy excise duty on substitute products follows primarily the intended use. If however, there is doubt as to whether the comparative product could be used for the intended purpose, it may be appropriate to classify the product by “its properties and intended use”.
The Supreme Tax Court has followed an ECJ judgment in basing the maximum foreign tax credit on the total German tax payable on the foreign income as calculated under the assumption that personal allowances and reliefs are first set against the domestic income. The court also held the “per country” limitation to be in accordance with community law.
The Supreme Tax Court has followed an ECJ judgment and held that a bus company organising educational trips for schools, and other groups may charge VAT under the margin scheme regardless of the business status of the customer.
The Supreme Tax Court has held that the exercise of the option for tonnage tax on the profits of a ship sailing in international waters does not preclude regular taxation on the earnings of a partner from services to the partnership prior to the ship’s commissioning.
The Supreme Tax Court has held that a loss incurred on an investment project of a closed-circle investment fund can be deducted by investors from their other income if the loss was not pre-planned and factored into the fund’s yield calculations.
The Supreme Tax Court has held that a sale of shareholdings within a group was not sufficiently good cause for breaking an unwanted German tax group before its expiry date.
The Supreme Tax Court has handed down four judgments on pension promises to managing directors who are also majority shareholders specifying rules for distinguishing allowable business expenses from disallowable “hidden distributions”.