Categories: Supreme Tax Court cases (687 found)

1. 10.09.2025

   Lump-sum compensation in exchange for waiver of post-marital ...

   In a most recent judgment, the Supreme Tax Court held a free gift to be subject to gift tax where the wife, before the marriage and according to a prenuptial agreement, receives a piece of property from her partner as compensation for waiving her claim for equalization of accrued gains between spouses (Zugewinnausgleich), for post-marital alimony, and for allocation of household goods. The Supreme Tax Court further decided that the waiver itself does not reduce the enrichment of the wife and the assessment basis for gift tax.

   Categories: Supreme Tax Court cases

   Keywords: spouse, gifts, compensation
2. 05.09.2025

   Taxation of income from a foreign investment fund

   According to the ruling of the Supreme Tax Court published on 28 August 2025, taxation under the Investment Tax Act 2004 represents the final tax burden and for private investors it takes precedence over taxation under the general provisions. This also hinders a fund's capital investments being allocate to the shareholder under Section 39 (2) No. 1 of the Tax Code.

   Categories: Supreme Tax Court cases

   Keywords: Tax-free investment income, investment i ...
3. 05.09.2025

   Assessment of fees for advance ruling provided uniformly to ...

   In a recently published judgment, the Supreme Tax Court decided that only one fee for processing a binding information (advance ruling) may be charged to several applicants if the information is provided to the applicants in a uniform manner and on the same subject.

   Categories: Supreme Tax Court cases

   Keywords: tax rulings
4. 02.09.2025

   Services provided by a prevention and personal development c ...

   In a most recent decision, the Supreme Tax Court held that the activity of a prevention and personal development coach may be exempt as a provision of children's or young people's education within the meaning of Article 132 paragraph 1 letter i of the VAT Directive. In the absence of a formal recognition procedure an institution with the same objective can in any case be assumed if the institution's entire entrepreneurial objective is aimed at educating children and young people.

   Categories: Supreme Tax Court cases

   Keywords: training seminars, educational events
5. 01.09.2025

   Loss utilization after termination of a two-tier limited par ...

   In a recently published judgment, the Supreme Tax Court decided in a case involving the transfer of a limited partnership to the sole remaining limited partner in the legal form of a limited liability company (GmbH) by way of universal succession through accrual, among other things, that the limited partner's allowable loss determined at the time of termination within the meaning of Section 15a (4) of the Income Tax Act can be offset by the limited limited company against its future profits.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, loss carryforward t ...
6. 31.08.2025

   No extended trade tax deduction in case of en bloc sale of p ...

   A sale of five multi-family properties at the same time (“en bloc sale”) in the third year after acquisition is detrimental to the extended trade tax deduction as it violates the established three-property limit within a five-year period. This was decided by the Supreme Tax Court in a most recent judgment.

   Categories: Supreme Tax Court cases

   Keywords: property company, trade tax deduction
7. 31.08.2025

   Tax treatment of marital lease with part of rent paid into j ...

   The Supreme Tax Court decided that rental agreements between spouses are not generally considered as “fictitious transactions” even if the rental payments are returned to the business via intra-family money accounts (cycles).

   Categories: Supreme Tax Court cases

   Keywords: property rental, family business
8. 29.08.2025

   Trade tax addback of interest on deposit liabilities in the ...

   In a recent judgment, the Supreme Tax Court decided, inter alia, that interest on deposit liabilities in the retrocession business of a reinsurance company is subject to the trade tax addback pursuant to Section 8 no. 1 letter a Trade Tax Act. There is no general exception for insurance and reinsurance companies similar to the so-called trade tax banking privilege.

   Categories: Supreme Tax Court cases

   Keywords: reinsurance, trade tax addback
9. 25.08.2025

   Tax may be retroactively abolished in case of error on tax c ...

   In a recent judgment, the Supreme Tax Court decided that the transfer of GmbH shares as part of the principle of equalization of accrued gains between spouses (Zugewinnausgeich) generally constitutes a taxable sale. However, retroactive elimination of the respective capital gain is possible if the transfer is reversed due to an error on the subsequent tax consequences.

   Categories: Supreme Tax Court cases

   Keywords: share transfer, retroactive, correction ...
10. 25.08.2025

    Interim decision on the extended limitation period for asses ...

    An interim decision pursuant to Section 99 (2) of the Code of Procedure of Fiscal Courts (Finanzgerichtsordnung - FGO) with regard to the extended assessment period (statute of limitations) pursuant to Section 169(2) sentence 2 alternative 1 of the German Fiscal Code for tax evasion is not permissible if there are no findings regarding the reason for and amount of the respective tax claim and thus on the objective and subjective facts of a criminal offence.

    Categories: Supreme Tax Court cases

    Keywords: limitation period, correction of assessm ...
11. 22.08.2025

    Taxation of income earned by a public service orchestra musi ...

    An orchestra musician employed by a public corporation in the Grand Duchy of Luxembourg is an artist within the meaning of Article 16 (1) of the double tax treaty between Germany and Luxembourg. The Supreme Tax Court has recently decided that his salary is taxable in Germany as income from employment with a credit of the tax paid in Luxembourg.

    Categories: Supreme Tax Court cases

    Keywords: double tax treaty, public sector, employ ...
12. 19.08.2025

    Partial write- down of partner loan receivable upon terminat ...

    The fact that a commercial limited partnership (KG) receives income ranking as business income because of the so called „tainting effect“ does not preclude the partial write-off of a worthless loan owed to its partner if the principles of corresponding accounting between partnership and the partners no longer apply because of the discontinuation (cessation) of the business of the KG. Unlike the tax court of first instance, the Supreme Tax Court allowed the loss from the partial write-down to be recognized already at the time of the cessation of the business activities.

    Categories: Supreme Tax Court cases

    Keywords: write-down, tainted income
13. 14.08.2025

    Consequences of an unjustified VAT disclosure according to S ...

    In a recent judgment the Supreme Tax Court decided that the requirements for an invoice within the meaning of Section 14c (2) Value Added Tax Act (VAT Act) are fulfilled if the document contains the issuer of the invoice, the (presumed) recipient of the service, a description of the service, the remuneration, and information on the VAT shown.

    Categories: Supreme Tax Court cases

    Keywords: incomplete invoice, incorrect VAT
14. 10.08.2025

    No amendment of tax assessment in case of conflict with high ...

    The Supreme Tax Court most recently decided that a tax assessment issued on a provisional basis pursuant to Section 165 (1) sentence 2 no. 3 of the German Fiscal Code cannot be amended to the disadvantage of the taxpayer with a reference to Section 165 (2) Fiscal Code.

    Categories: Supreme Tax Court cases

    Keywords: tax amendments, provisional assessment, ...
15. 07.08.2025

    Referral to ECJ regarding a possible violation of the free m ...

    In its decision of 3 June 2025 – VIII R 21/22, the Supreme Tax Court referred various questions to the Court of Justice of the European Union (ECJ) for a preliminary ruling in connection with the dividend withholding tax paid to third-country companies.

    Categories: Supreme Tax Court cases, From Europe

    Keywords: free movement of capital, freedom of est ...
16. 04.08.2025

    The Supreme Tax Court considers the double assessment of rea ...

    In an interim decision, dated 9 July 2025 (II B 13/25 (AdV) and published on 31 July 2025, the Supreme Tax Court considered it doubtful, following a summary examination, that in cases where the contractual acquisition transaction (signing) and the transfer of the shares (closing) take place at different times, real estate transfer tax can be assessed twice – namely once upon signing under Section 1(3) No. 1 of the German Real Estate Transfer Tax Act (“RETTA)” (signing) and once upon closing under Section 1(2b) RETTA – if the tax office is aware at the time of assessment for the signing that the closing has already occurred.

    Categories: Supreme Tax Court cases, Tax & Legal New ...

    Keywords: real estate transfer tax, unification of ...
17. 03.08.2025

    ECJ referral regarding the review of protection of good fait ...

    The Supreme Tax Court referred to the European Court of Justice the question whether, in accordance with the principle of effectiveness, EU law precludes a national practice whereby the taxpayer's good faith in fulfilling the conditions for the margin scheme is not taken into account during the tax assessment procedure but rather considered later in fully separate proceedings.

    Categories: Supreme Tax Court cases

    Keywords: concession, good faith, waiver
18. 27.07.2025

    Takeover of emergency medical service by substitute doctor a ...

    Emergency medical services are also exempt from Value Added Tax if provided and charged by a physician on duty for another medical doctor (e.g., on weekends and outside the consultation hours of panel doctors). This was decided by the Supreme Tax Court in a recently published judgment.

    Categories: Supreme Tax Court cases

    Keywords: medical treatment, Medical health care
19. 22.07.2025

    Update: Gains from online poker may be subject to income tax

    In a most recent decision, the Supreme Tax Court held that winnings from online poker games can be subject to income tax. If a poker player plays regularly and successfully in poker tournaments, the gains are qualified as income from a trade or business.

    Categories: Supreme Tax Court cases

    Keywords: online game
20. 21.07.2025

    ECJ to clarify EU State aid rules on non-profit status of se ...

    In a request for a preliminary ruling, the Supreme Tax Court has referred several questions to the ECJ regarding the compatibility of non-profit tax status and the prohibition of state aid under EU law. The question to be answered is whether the extension of tax relief for special-purpose entities to companies that provide services for remuneration in cooperation with a corporation that is recognized as a non-profit organization (so-called service corporation) constitutes illicit state aid in accordance with Art. 107 of the Treaty on the Functioning of the European Union (TFEU).

    Categories: Supreme Tax Court cases, European Court ...

    Keywords: state aid, non-profit associations
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