Categories: Supreme Tax Court cases (662 found)

1. 15.06.2025

   Deadline to file an appeal for provision of personal data un ...

   In a recent judgement, the Supreme Tax Court held that the only legitimate type of action for the judicial claim under the General Data Protection Regulation (GDPR) for the provision of a copy of the processed personal data is by way of „appeal for mandatory relief" (Verpflichtungsklage). The filing deadline is one month commencing with the delivery of the challenged administrative act.

   Categories: Supreme Tax Court cases

   Keywords: Data processing, filing deadlines
2. 10.06.2025

   Allocation of total sales price for „best value menu“ with d ...

   In a most recent judgment, the Supreme Tax Court held that a method for allocating a standardized total price for a certain product that results in a proportionate sales price for a combination of goods (here: „economical menu” or “best value meal“ in the „system gastronomy“) that is higher than the individual sales price is not appropriate.

   Categories: Supreme Tax Court cases

   Keywords: VAT adjustment, fastfood, sale of foodst ...
3. 03.06.2025

   Treaty switch-over to tax credit method requires control of ...

   The change in the method for avoiding double taxation of certain foreign profits (the „switch-over“ from exemption to the tax credit method) stated in Section 20 (2) of the Foreign Tax Act requires that the German taxpayer controls the foreign company that generates the profits. This most recent decision of the Supreme Tax Court is contrary to the opinion of the German Ministry of Finance in a circular from 2014.

   Categories: Supreme Tax Court cases

   Keywords: switch over provision
4. 03.06.2025

   Capital gain from transfer of property and assumption of und ...

   In the case of the transfer of assets for partial consideration, the gain is from a private sale and must be allocated into a transaction for consideration and a gratuitous part based on the ratio of the consideration to the market value of the transferred asset. According to the Supreme Tax Court, this also applies if the consideration is below the initial (acquisition) costs.

   Categories: Supreme Tax Court cases

   Keywords: sale of property, capital gain
5. 03.06.2025

   ECJ referral: Physical entry of goods into the economic netw ...

   The Supreme Tax Court has asked the European Court of Justice (ECJ) for a preliminary ruling regarding the entry of a sailing boat into the economic network of the Union. One of the questions referred to the ECJ is whether a means of transport enters the economic cycle of the Union if it is not used as such in a Member State but rather a service (here: maintenance and repair work) is carried out at the boat.

   Categories: Supreme Tax Court cases

   Keywords: customs clearance, import VAT
6. 03.06.2025

   No constitutional concerns regarding late payment penalties

   According to a most recent decision of the Supreme Tax Court, there are still no constitutional concerns regarding the statutory amount of the late payment penalty as provided in Section 240 (1) sentence 1 Fiscal Code, also for periods after 31 December 2018 (follow-up to the decision of the Supreme Tax Court of 23 August 2023 – case: X R 30/21). In the opinion of the court, the compatibility with EU law is also beyond doubt.

   Categories: Supreme Tax Court cases

   Keywords: penalty surcharge
7. 26.05.2025

   Extended trade tax deduction where first property sales occu ...

   According to a decision of the Supreme Tax Court, commercial property trading - which is harmful for the extended trade tax deduction - may be precluded under specific circumstances of the individual case if neither property sales nor preparatory measures are carried out within the five-year period and several property sales occur only in the sixth year.

   Categories: Supreme Tax Court cases

   Keywords: IFRS (Asset Management), extended trade ...
8. 26.05.2025

   Waiver of late payment penalties on grounds of the statutory ...

   In a most recent decision, the Supreme Tax Court commented on the conditions for a waiver of late payment fees on grounds of the concessionary rule mentioned in Section 227 Fiscal Code following the rejection of the request for suspension of payment/stay of execution by the tax office.

   Categories: Supreme Tax Court cases

   Keywords: waiver, penalty
9. 23.05.2025

   Competence of Central Customs Office after merger

   In a recent decision, the Supreme Tax Court has given its opinion on the territorial jurisdiction (competence) of German central customs authorities as regards electricity and energy tax relief applications and commented on the point in time when a change of jurisdiction in accordance with Section 26 Fiscal Code is possible. Competence of the customs authority is only transferred in the event of a change in circumstances and if the previously competent tax authority has already started processing the specific administrative procedure.

   Categories: Supreme Tax Court cases

   Keywords: customs, competent authority, tax relief
10. 16.05.2025

    Interest on withholding tax levied in breach of EU law

    Foreign companies as shareholders that are eligible for a refund of withholding tax in accordance with Art. 5 of the Parent-Subsidiary Directive are entitled to interest under EU law if the refund of the tax amounts is withheld from them in violation of EU law or if - for the same reason - tax is withheld from the outset. This was decided by the Supreme Tax Court in a recent judgment.

    Categories: Supreme Tax Court cases

    Keywords: tax interest, withholding tax refund
11. 13.05.2025

    Tonnage tax option only available if intended to operate the ...

    In a most recent decision, the Supreme Tax Court upheld the tax office’s refusal to allow a partnership to compute its income on tonnage tax principles – as these presuppose an intent to operate the ship in international waters in the long term. Furthermore, the court decided that the determination of profits by tonnage for a subsequent year requires that specific requirements laid down in section 5a (1) sentence 1 and (2) of the Income Tax Act as to time and deadlines are met.

    Categories: Supreme Tax Court cases

    Keywords: tonnage tax
12. 11.05.2025

    Charitable promotion of democratic political system via onli ...

    In a recently published decision, the Supreme Tax Court held that the operation of an online platform for the publication of socio-political issues can only be recognized as a charitable non-profit promotion of the democratic state if the matters of concern are related to the exercise of state authority and are dealt with in a neutral und unbiased manner.

    Categories: Supreme Tax Court cases

    Keywords: charitable organization, non-profit asso ...
13. 08.05.2025

    Adjustment of local branch profit according to Section 1 (5) ...

    In a decision published today, the Supreme Tax Court held that Section 1 (5) Foreign Tax Act does not constitute an independent rule for determining permanent establishment profits. General allocation methods such as the cost-plus method require a clear legal basis - otherwise they are inadmissible.

    Categories: Supreme Tax Court cases

    Keywords: German branch, income adjustment
14. 05.05.2025

    Parallel imports of (original) medicinal products may be hid ...

    The Supreme Tax Court decided that so-called parallel imports of (original) pharmaceuticals may constitute a hidden profit distribution on the part of the group's (domestic) sales company and in favor of the (foreign) parent company.

    Categories: Supreme Tax Court cases

    Keywords: hidden distributions, third country impo ...
15. 04.05.2025

    Tax exemption of foreign branch income

    In two decisions, the Supreme Tax Court has defined in more detail the requirements for a foreign permanent establishment in cross-border situations under a double tax treaty (DTT). If such a treaty exists, double taxation is usually avoided by exempting the foreign branch income from German tax.

    Categories: Supreme Tax Court cases

    Keywords: double tax treaty, Foreign Permanent Est ...
16. 02.05.2025

    Tax group: Management holding partnership as parent company

    In a recently published decision, the Supreme Tax Court held that a commercial activity as stated in Section 14 (1) no. 2 sentence 2 Corporation Tax Act also exists if the controlling partnership acts exclusively as managing holding company. Intra-group services for other additional commercial activities are not required.

    Categories: Supreme Tax Court cases

    Keywords: corporation tax group, management holdin ...
17. 30.04.2025

    Tax treatment of shareholder loan granted to asset-managing ...

    A shareholder loan granted to an asset-managing partnership is not recognized from a tax point of view insofar as the company's loan liability is attributable to its shareholder for tax purposes (Section 39 (2) no. 2 of the German Fiscal Code). According to a recent decision of the Supreme Tax Court, the loan agreement neither leads to deductible income-related expenses for the borrower nor to income from capital assets for the lender but is rather considered a tax-neutral contribution. This would be different only in the case of commercially active partnerships.

    Categories: Supreme Tax Court cases

    Keywords: IFRS (Asset Management), partnership, sh ...
18. 29.04.2025

    Tax treatment of shareholder loan granted to asset-managing ...

    A shareholder loan granted to an asset-managing partnership is not recognized from a tax point of view insofar as the company's loan liability is attributable to its shareholder for tax purposes (Section 39 (2) no. 2 of the German Fiscal Code). According to a recent decision of the Supreme Tax Court, the loan agreement neither leads to deductible income-related expenses for the borrower nor to income from capital assets for the lender but is rather considered a tax-neutral contribution. This would be different only in the case of commercially active partnerships.

    Categories: Supreme Tax Court cases

    Keywords: IFRS (Asset Management), shareholder loa ...
19. 27.04.2025

    Attribution taxation for foundations under the Foreign Tax A ...

    In a most recent judgment, the Supreme Tax Court decided that the restriction for exemption from taxation of the retained income of foreign foundations with their management or registered office in a member state of the European Union or a contracting state of the EEA to be in conflict with the EU free movement of capital.

    Categories: Supreme Tax Court cases

    Keywords: free movement of capital, family foundat ...
20. 27.04.2025

    VAT: Services of a gym during Corona lockdown

    Services provided by a fitness studio operator are also subject to VAT if the gym is closed. The continued payment of membership fees as well as the replacement services offered by the gym operator during the corona lockdown is an exchange of services subject to VAT. According to a most recent judgment of the Supreme Tax Court this also applies if the members (as the recipients of the service) do not actually make use of the offered gym services, do not wish to do so or are unable to make use of them.

    Categories: Supreme Tax Court cases

    Keywords: Coronavirus (COVID-19), fitness studio / ...
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