11. September 2024 Inheritance tax: Transfer of privileged assets In a most recently published decision, the Supreme Tax Court held that the transfer of the tax privilege for business assets, rented residential property and family homes among co-heirs requires that the assets are conveyed in the course of the division of the estate. The transfer would not be privileged if the decision to divide the estate and thereby transfer preferential (business) assets in exchange for non-preferential assets is based on a new decision of the community of heirs, when initially they deliberately left the estate undivided. Kategorien: Supreme Tax Court casesSchlagwörter: inheritance tax privilege
05. September 2024 Update: Taxation of foreign investment funds under the Germa ... In a most recent decision, the Supreme Tax Court held that a foreign investment fund who received dividends from domestic stock corporations which were subject to tax withholding (capital gains tax) under the 2004 Investment Tax Act is in general entitled to a refund of this tax under the principles of EU law. Kategorien: Supreme Tax Court casesSchlagwörter: foreign investment trust, Investment Tax ...
03. September 2024 VAT: ECJ referral on margin taxation for travel services In a decision of 20 June 2024, the Supreme Tax Court asked the ECJ for a preliminary ruling as to whether the margin taxation for tour operators and travel agents must also be applied in a case of „bus excursions“ organized by a company with the intention of promoting the sale of its goods. Kategorien: Supreme Tax Court casesSchlagwörter: margin taxation, travel services
02. September 2024 Hazardous waste accepted prior to its orderly disposal and r ... Hazardous waste accepted by an entrepreneur for the sole purpose of legally ordered disposal and recycling is a service subject to VAT. In a most recent decision and contrary to the view of the tax office the Supreme Tax Court held that the prior delivery of the hazardous waste by the customer to the entrepreneur is not a VATable transaction. Kategorien: Supreme Tax Court casesSchlagwörter: waste disposal
30. August 2024 Foreign currency losses in the case of shareholder loans to ... In a most recent decision, the Supreme Tax Court held that foreign currency losses on shareholder receivables similar to loans do not reduce the taxable income of the corporation. This was decided by the Supreme Tax Court in its interpretation of Section 8b (3) Corporation Tax Act as valid in 2014 and which deals with investments in other corporations and the non-deductibility of losses in connection with certain shareholder loans. Kategorien: Supreme Tax Court casesSchlagwörter: Loss relief, shareholder loan
28. August 2024 Tonnage tax: Management of ship to be carried out almost exc ... The task of operating merchant ships encompasses all transactions and legal acts, such as supplying the ships with fuels and equipment. The Supreme Tax Court decided that to benefit from the tonnage tax system the technical and commercial management of merchant ships must be carried out almost exclusively in Germany. Kategorien: Supreme Tax Court casesSchlagwörter: tonnage tax, shipping line
26. August 2024 Interest rate levied on suspension of payments unconstitutio ... The Supreme Tax Court believes that interest of 0.5 percent per month levied in the event of suspensions of payment is unconstitutional. This interest is charged if an appeal against a tax assessment is unsuccessful, and the tax office therefore no longer grants a stay of execution. The Federal Constitutional Court is now asked to deal with the preliminary request and provide its final opinion. Kategorien: Supreme Tax Court casesSchlagwörter: suspension of payment, statutory interes ...
26. August 2024 Exit tax upon transfer of Germanys right for taxation under ... In a case where Germany lost the right to tax the investment in a Spanish corporation the Supreme Tax Court - in contrast to the opinion held by the tax administration - decided that the German exit taxation pursuant to Section 6 para. 1 sentence 1 Foreign Tax Act applies to the year in which the German unlimited income tax liability ends and not at the later point in time when the limited tax liability arises. Kategorien: Supreme Tax Court casesSchlagwörter: exit tax
02. August 2024 Provision for contingent liabilities in case of working time ... A provision for contingent liabilities (for payments in arrears) must be recorded in the tax accounts for the employer's obligation to grant paid time off (two days per year of service) which is available to employees who are at least 60 years old and have been with the company for at least ten years. With its decision the Supreme Tax Court contradicts the previous view of the tax administration. Kategorien: Supreme Tax Court casesSchlagwörter: pre-retirement, liabilities
30. Juli 2024 VAT treatment of additional remuneration for copyrights gran ... According to a recently published decision of the Supreme Tax Court a so called “fairness compensation” which is paid by a TV station to the screenwriter based on the specific provisions in the German Copyright Act is subject to VAT as remuneration from a third party within the meaning of Section 10 (1) sentence 3 of the German VAT Act. Kategorien: Supreme Tax Court casesSchlagwörter: remuneration agreed
16. Juli 2024 Accrual and taxation of unpaid bonus for shareholding managi ... A management bonus for the majority shareholder and managing director of a limited liability company (GmbH) which is not recorded as a liability in the certified annual financial statements is not immediately subject to income tax, even if it is mandatory under generally accepted accounting principles to record a liability to this effect in the (certified) financial accounts. Kategorien: Supreme Tax Court casesSchlagwörter: management agreement, bonus share
08. Juli 2024 No access to tax files to check possible claim for damages a ... The access to tax files after the taxation proceedings have been carried out is not permitted if the taxpayer wishes to pursue non-tax-related purposes, such as the examination of a claim for damages against the tax advisor. In its decision the Supreme Tax Court noted that this does not affect the right to information on the processing of personal data in accordance with the General Data Protection Regulation. Kategorien: Supreme Tax Court casesSchlagwörter: Personal data, Data Protection
05. Juli 2024 No inheritance and gift tax privilege for parking garage In a recent decision, the Supreme Tax Court held that a multi-storey car park (parking garage) is not eligible for the inheritance tax privilege available for business assets. Kategorien: Supreme Tax Court casesSchlagwörter: inheritance tax privilege, special busin ...
02. Juli 2024 RETT: No protection of legitimate expectation in case of ind ... In a most recent decision, the Supreme Tax Court commented on the tax situation of an indirect unification of shares through intermediary partnership in 2012 with respect to the relevant holding for establishing its interest in the related real-estate holding company. The court further held that there is no protection of legitimate expectations with respect to the tax effects of a subsequent judgment of the Supreme Tax Court in 2017. Kategorien: Supreme Tax Court casesSchlagwörter: share transfer, Protection of legitimate ...
01. Juli 2024 Constitutionality of the loss set-off restriction for forwar ... In the summary review required during suspension proceedings under Section 69 (3) of the German Tax Court Code, the loss set-off restriction for forward transactions/futures under Section 20 (6) Sentence 5 of the German Income Tax Act (ITA) in the version of the Finance Act 2020 of 21 December 2020 (Federal Law Gazette I 2020, 3096) is incompatible with Article 3 (1) of the German Constitution. This was decided by the Supreme Tax Court in a ruling published on 27 June 2024. Kategorien: Supreme Tax Court cases, Tax & Legal New ...Schlagwörter: Futures, losses, loss curtailment, Incom ...
28. Juni 2024 Calculation of tax-free bonus for night shifts The bonus paid to employees for work performed outside regular working hours (here: during the night-shift) that are remunerated separately must be determined based on the salary paid to the employee for regular working hours and not on the remuneration for the night-shift. Kategorien: Supreme Tax Court casesSchlagwörter: night work, employee taxation
25. Juni 2024 Update: Flat-rate energy price allowance subject to income t ... According to a recent decision of the Münster Tax Court the energy price allowance paid to employees in 2022 is taxable as income from employment. Section 119 para. 1 sentence 1 Income Tax Act, as contested by the plaintiffs, is not unconstitutional. Kategorien: Supreme Tax Court casesSchlagwörter: energy tax, income from employment
21. Juni 2024 Access for taxpayers to personal data information pursuant t ... In a recent decision, the Supreme Tax Court commented for the first time on the requirements and scope of the right to information under the General Data Protection Regulation. Kategorien: Supreme Tax Court casesSchlagwörter: Data processing, Data Protection
17. Juni 2024 Trade tax addback of portfolio dividends in 2001 tested befo ... After the European Court of Justice had answered the preliminary request submitted by the Supreme Tax Court on the subject of trade tax addback of foreign portfolio dividends in the year 2001, the latter continued to suspend the appeal and now referred the matter to the Constitutional Court. It should be ascertained whether the transitionary regulation, which had been introduced with the replacement of the imputation system in 2001 with the half-charge to income tax, contravenes the principles of legitimate expectations laid down in Article 20 (3) of the Basic Law. Kategorien: Supreme Tax Court casesSchlagwörter: trade tax addback
11. Juni 2024 No application of loss forfeiture rules for losses allocated ... The loss forfeiture rules of Section 8c of the Corporation Tax Act in the version valid for 2014 are not applicable to deductible losses which are allocated to a corporation as partner of a limited partnership pursuant to Section 15a Income Tax Act. With this decision, the Supreme Tax Court contradicts the view of the tax administration. Kategorien: Supreme Tax Court casesSchlagwörter: partnership income, Loss relief
