This morning both the Federal Ministry of Finance and the Supreme Tax Authorities of the Federal States (“the Länder”) released a circular and a decree (respectively) introducing tax measures to combat the effects of the coronavirus (COVID- 19 /SARS-CoV-2). In this Newsflash we would like to inform you of the measures.
At a Federal Press Conference on 6 July 2020, the Ministry of Finance in Berlin made the surprise announcement that, following a decision of the Minister of Finance, Germany will not be exercising the option given in the recent EU Directive to extend the reporting deadlines for DAC 6.
The German Federal Cabinet has released the draft bill on the crisis management package aimed at mitigating the economic impact of the COVID 19 pandemic.
In today’s judgment the European General Court annuls the decision of the European Commission to approve the recapitalization of Lufthansa by Germany, amounting to €6 billion euros, in the context of the COVID-19 pandemic.
In the night of 3-4 June, coalition partners CDU/CSU and SPD agreed on a crisis management package to mitigate the economic impact of the COVID 19 pandemic.
When COVID-19 broke out, G20 members pledged to remain open to trade and investment to limit the damage of the pandemic on their economies. The latest OECD-UNCTAD report monitors investment measures taken by G20 members over the past 6 months.
The Council of the European Union adopted an amendment to the VAT directive introducing a temporary VAT exemption on importations and on certain supplies in response to the COVID-19 pandemic. The ‘buy and donate’ directive will make it easier for the Commission and EU agencies to buy goods and services to distribute them free of charge to member states in the context of the ongoing public health crisis.
The EU needs a robust, efficient and fair business tax framework that supports the post-COVID-19 recovery, removes obstacles to cross-border investment and creates an environment conducive to fair and sustainable growth. That is why, on 18 May 2021, the Commission published the Communication on Business Taxation for the 21st Century.
On 28 June 2022, the EU Commission published its Annual Report on Taxation 2022, which according to the EU Commission highlights that EU Member States’ tax revenue has decreased for the first time since the 2009 financial crisis, while public expenditure jumped from 46.5% in 2019 to 53% in 2020 due to the COVID-19 crisis.
At its meeting on 6 May 2020, the Federal Cabinet adopted the Corona Tax Assistance Bill, which - with the exception of editorial changes - essentially corresponds to the Federal Ministry of Finance's original formulation.
Ryanair was unsuccessful in its action against state aid from Sweden before the European General Court as the court of first instance. Within a short period of time, the airline had brought actions against 16 different state aid measures, including the Swedish case involving the state support for the local airline SAS and which is currently pending before the European Court of Justice (ECJ). In his Opinion Advocate General Pitruzzella suggests that the ECJ rejects the appeal in its entirety.
The seizure of a bank account by the tax office, where the account also includes amounts received as Corona emergency aid, is unlawful. This was decided by the Münster Tax Court in a procedure for interim relief on 13 May 2020 (Az. 1 V 1286/20 AO), published in a press release on 19 May 2020.
Issue 2 of the Tax & Legal News for 2020 contains includes news about support measures against the Coronavirus as well as news from the Supreme Tax Court and the ECJ:
