Regarding the redemption of so-called gold warrants, the Supreme Tax Court decided that taxation as „other claims from capital investments“ within the meaning of Section 20 (1) No. 7 Income Tax Act cannot be ruled out on grounds that the holder of the capital claim has the right to demand fulfillment by means other than cash. If the holder exercises this option, the transaction constitutes a taxable redemption and is treated as income from capital investment.
Section 20 (4a) sentence 3 of the Income Tax Act (ITA) provides that certain capital-related measures are initially treated as tax neutral. Taxation only occurs at the time of resale of the securities which were delivered in the course of the capital transaction. In a recent judgment, the Supreme Tax Court decided that this does not apply to cases in which neither the issuer nor the holder has the right under the contractual terms to unilaterally tender securities or demand the delivery of securities instead of repayment of the securities in cash.
According to a ruling of the Supreme Tax Court, the compensation for use received in the context of the reversal of a consumer loan agreement after revocation is not subject to income tax.
The Regional Tax Court of Muenster held that a loss from the exchange of profit participation rights for shares in a registered cooperative ("eG") and bonds may be set off against income from capital investments. Thus, the tax office's attempt to regard the loss as belonging to the non-taxable private asset portfolio of the plaintiff failed.
