Tax & Legal

In its judgement of 18 March 2026 ( III R 20/24), the Supreme Tax Court clarified the requirements for proving a willingness to undertake vocational training under child benefit law. The court thereby confirmed the strict line that a mere assertion that a child is willing to undertake vocational training is not sufficient to establish an entitlement to child benefit.

Social Democrats (SPD), the Green Party (Bündnis 90/Die Grünen) and the Liberals (FDP) have unexpectedly agreed on the implementation of selected measures from the Act for the Further Development of Tax Law (Tax Development Act) already before the early general election in February 2025. Politically highly controversial initiatives, above all the planned introduction of a national reporting obligation for tax structures, are not part of this settlement.

On 2 November 2022, the Federal Cabinet adopted the 5th Tax Progression Report and the 14th Subsistence Minimum Report. The Inflation Compensation Bill, which was introduced on 14 September 2022, is now to be adapted during further parliamentary procedures. It is to take effect on 1 January 2023

In a recent ruling, the Supreme Tax Court decided that there is no claim for the refund of costs incurred in the event of a successful appeal against interest on evaded amounts, even in child benefit proceedings.