Categories: Supreme Tax Court cases (693 found)

1. 04.10.2025

   Redemption of gold warrant certificates taxable as capital i ...

   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.

   Categories: Supreme Tax Court cases

   Keywords: commodity warrant, capital investment in ...
2. 04.10.2025

   Supreme Tax Court rejects loss offsetting scheme with securi ...

   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.

   Categories: Supreme Tax Court cases

   Keywords: loss offset, securities dealings, capita ...
3. 29.09.2025

   Exemption from real estate transfer tax and revocation pursu ...

   In a recently published decision, the Supreme Tax Court commented on the repurchase of shares in a property-owning company where the previous acquisition was not subject to real estate transfer tax. Another case decided on the same date concerned the annulment of a chargeable transfer (concentration of 100% of the shares in the property-owning company) which later was reversed a second time restoring the initial level of shareholding.

   Categories: Supreme Tax Court cases

   Keywords: real estate transfer tax, property compa ...
4. 29.09.2025

   Official collection of guiding reference values of the MoF u ...

   In a recent judgment, the Supreme Tax Court commented on the retention requirements when determining profits on an accrual accounting basis (Betriebsvermögensvergleich) and using an open cash register, the choice between several possible methods to estimate the tax base (Section 162 Fiscal Code), and the admissibility of an estimate based on the official collection of guiding reference values published by the Federal Ministry of Finance (MoF).

   Categories: Supreme Tax Court cases

   Keywords: record retention, documentation
5. 26.09.2025

   Tax office not generally required to disclose content of ano ...

   According to a most recent judgment of the Supreme Tax Court, a taxpayer is not generally entitled to disclosure of an anonymous report received by the tax office that accuses him of misconduct in tax matters. The right to obtain information under data protection law does not confer any further rights in this respect.

   Categories: Supreme Tax Court cases

   Keywords: mandatory disclosure, Data Protection
6. 19.09.2025

   Retention requirements also for commercial or business lette ...

   In a recent judgment, the Supreme Tax Court decided that tax-relevant emails are generally subject to retention requirements as commercial and business correspondence and may be requested by the tax authorities during an external audit. This also applies to digital documentation on group transfer pricing, the Supreme Tax Court said.

   Categories: Supreme Tax Court cases

   Keywords: retention requirement, digital data
7. 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
8. 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 ...
9. 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
10. 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
11. 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 ...
12. 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
13. 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
14. 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
15. 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 ...
16. 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 ...
17. 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 ...
18. 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
19. 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
20. 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, ...
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