Considering the general context and framework of the German media law, the “broadcasting license” issued to a private broadcaster of radio or television programs is not, from a purely tax point of view, to be treated as an intangible asset for which capitalization in the tax balance sheet is mandatory. According to the Supreme Tax Court this is for want of a sufficient enough economic transferability of the broadcasting license. The fees paid in connection with the admission as regional TV-station, as in the case of dispute, are in general immediately tax deductible.
A signing bonus which is paid by a soccer club to a professional player upon the conclusion of an employment contract may be capitalized as part of the acquisition cost for the exclusive playing rights (i. e., the one-off payment made to a player upon signing a contract with a new club) if the club is required to pay a transfer fee for the player’s change of club.
An online form enabling the taxpayer to meet his extended duty to cooperate under Section 12 (2) of the Tax Haven Defence Act (in full “Act on Defence against Tax Avoidance and Unfair Tax Competition and amending other laws”) has been published on the homepage Federal Central Tax Office.
The European Court of Justice (ECJ) confirms in his most recent judgment that the Commission has not established that the tax ruling given to Amazon by Luxembourg was a State aid that was incompatible with the internal market.
The Supreme Tax Court has decided that the expenses incurred by a special outdoor advertising agency for the provision of advertising media by corresponding advertising media providers (out-of-home advertising) did not meet the requirements for trade tax add-back pursuant to Section 8 no. 1 letters f or d Trade Tax Act.
Costs for legal advice and representation in connection with a partition auction for dissolution of a community of heirs are deductible from the total value of the estate. According to the Supreme Tax Court, this also applies if the community of heirs had already assumed management of the estate’s assets prior to a request for distribution by one of the co-heirs.
In a recently published decision, the Supreme Tax Court held that an employee, in addition to the deduction of expenses for the rented apartment as double-household relief, can also claim the costs for a parking space as income-related expenses.
The Supreme Tax Court decided that expenses for a gym membership are generally not tax deductible as personal extraordinary and inevitable expenses. This also applies if the participation in a medically prescribed functional training program requires a membership in the gym.
A professional soldier was convicted of a criminal offense and also had to undergo military disciplinary proceedings. At least he can deduct the legal costs of the disciplinary proceedings as income related expenses, the Supreme Tax Court said in a most recent decision.
The Supreme Tax Court decided that a commercial partnership holding a share in a corporation as its sole activity in order to generate dividend income which is partially tax-exempt in accordance with Section 3 No. 40 Income Tax Act can deduct its ongoing administrative and consolidated group costs only in part because they are economically related to the partially tax-exempt income as defined in Section 3c (2) Sentence 1 Income Tax Act.
According to a decision of the Supreme Tax Court, the provision of spa facilities by a municipality does not constitute a service for consideration if the municipality collects a spa tax (visitor's tax) per day from guests staying in the municipality. However, this only applies if the obligation to pay this tax is not tied to the use of the spa facilities but rather to the stay in the municipal area and if the facilities are accessible to everyone free of charge.
If the testator has assigned benefits from a death benefit insurance policy to a funeral home during his lifetime the estate is increased by the heirs' claim for a benefit in kind towards the funeral home. The costs of the funeral are fully deductible as liability of the estate.
The Supreme Tax Court has held that the opening balance sheet of a partnership converted from a GmbH may include intangibles that the GmbH could not take up in its closing balance sheet.
A non-profit association that entitles its sponsor to market the sponsorship measure as part of its advertising while at the same time indicating the association's promotion on its products is a service in return for the sponsorship funds received and as such fully deductible as business expense and not treated as donations. This was decided by the Hamburg Tax Court.
In a most recent judgment, the Supreme Tax Court clarified that compensation (settlement) payments in connection with an interest rate swap may be deducted as business expenses if they are used to hedge an operational interest rate risk. However, this requires that the business loan and the interest swap transaction are exactly or at least approximately matched in respect of their content (portfolio, volume, term and amount).
The Italian trust mandates (of fiduciary arrangements) are subject to EU anti-money laundering transparency rules. According to a decision of the European Court of Justice, public access to beneficial ownership data remains compatible with EU fundamental rights, provided that it is strictly conditioned on proving a legitimate interest.
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.
Expenses incurred for business travel by private car are generally considered unreasonable and therefore cannot be fully deducted as income-related expenses if the taxpayer is provided with a company car and would not have incurred any travel expenses had he used it. This is the conclusion of the Supreme Tax Court in a recently published decision.
Losses arising from the inability to trade Russian government bonds and Russian shares cannot be taken into account for income tax purposes in 2022. This was the ruling of the Saxony Finance Court in Leipzig in a recent judgment.
In the case of double household abroad, it must be decided through an overall assessment of the objective circumstances of the individual case whether and to what extent accommodation costs are necessary. However, the Supreme Tax Court held in the case of an official residence assigned under civil service law that the actual amount of accommodation costs at the foreign place of employment are always deductible as income-related double household expenses.
