Categories: Supreme Tax Court cases (656 found)

1. 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 ...
2. 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
3. 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
4. 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
5. 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
6. 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 ...
7. 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
8. 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 ...
9. 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 ...
10. 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 ...
11. 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 ...
12. 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 ...
13. 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 ...
14. 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 / ...
15. 21.04.2025

    No deduction of income-related expenses if taxpayer moves to ...

    In a most recent decision, the Supreme Tax Court held that expenses incurred by the taxpayer for moving to another home to set up a separate workplace (for the first time) are not deductible as income-related expenses. This also applies if the taxpayer is forced to work from home - as in times of the coronavirus pandemic - or tries to reconcile work and family life by working from home.

    Categories: Supreme Tax Court cases

    Keywords: Home office
16. 21.04.2025

    Permanent establishment not viewed as employer under relevan ...

    A foreign permanent establishment of a legally independent person resident in Germany cannot be viewed as employer. This was decided by the Supreme Tax Court in a recent judgment regarding the double tax treaties with the Netherlands, Japan, the UK, Spain, Australia, Ireland, Belgium, Switzerland, Italy, Denmark, Canada, Singapore, Norway, Greece and France.

    Categories: Supreme Tax Court cases

    Keywords: employer, permanent establishment (PE)
17. 17.04.2025

    No constitutional concerns regarding late-payment penalties ...

    In a most recent decision in relation to a request to suspend a tax payment, the Supreme Tax Court confirmed the constitutionality of the rate of the late- payment penalties because of the rise in interest rates that began with the start of the war in Ukraine. According to the Court, at least since March 2022, there are no longer any serious doubts about the constitutionality of the statutory regulation on the amount of late-payment surcharges.

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

    Keywords: tax interest, penalty surcharge
18. 06.04.2025

    Corporation tax group and non-typical silent partnership

    An untypical silent partnership in the controlled group company does not generally prevent the recognition of a consolidated tax group for corporation tax purposes. With this current decision, the Supreme Tax Court disagrees with the previous opinion of the tax authorities.

    Categories: Supreme Tax Court cases

    Keywords: non-typical silent partnership, corporat ...
19. 31.03.2025

    Economic ownership of shares assigned as collateral

    In a most recent decision, the Supreme Tax Court held that the shares transferred by way of security are attributable to the purchaser ( who is also the secured party) as of the date of transfer of ownership if the purchaser can legally and effectively exercise the material rights associated with the shares (in particular the sale and exercise of voting rights) and regardless whether the security event occurs.

    Categories: Supreme Tax Court cases

    Keywords: Collaterals / Sicherheiten, share transf ...
20. 31.03.2025

    German-French double tax treaty: Taxation of severance payme ...

    As the state of employment, Germany has the right to tax a severance payment to the extent that the employee has exercised the activity in Germany. According to a decision of the Supreme Tax Court in the case of cross-border situations, the exclusion to tax benefits in kind from the exercise of share options and comparable rights under tax treaty law is based pro rata temporis on the place of employment of the employee during the vesting period (defined as the period in which the employee is entitled to acquire the options).

    Categories: Supreme Tax Court cases

    Keywords: stock options, severance payment, income ...
21. Load more