Categories: Supreme Tax Court cases (614 found)

1. 17.01.2025

   Free transfer of company shares to ensure company succession ...

   According to a recent judgment of the Supreme Tax Court, the gratuitous transfer of shares to senior employees to secure continuity in succession is not taxable as income from employment. The court further noted that there was no automatic presumption that a share transfer to an employee was made in consideration for employee services rendered.

   Categories: Supreme Tax Court cases

   Keywords: employee benefit, employee shares
2. 17.01.2025

   Compensation payment for premature termination of interest s ...

   The Supreme Tax Court held that the compensation payment for the early abandonment of an interest rate swap is to be taxed as a separate item, rather than as part of the results of the main transaction.

   Categories: Supreme Tax Court cases

   Keywords: compensation payment, interest swap
3. 16.01.2025

   Special up-front leasing payment to be allocated over the te ...

   In a most recent decision, the Supreme Tax Court held that the actual costs for business mileage with a leased car in case of an up-front lease payment must be allocated to the individual assessment periods during the term of the lease agreement.

   Categories: Supreme Tax Court cases

   Keywords: car leasing, mileage log
4. 14.01.2025

   Notice of a tax assessment to a dissolved partnership

   The validity of an assessment notice on the separate and uniform determination of the tax bases (profit assessment notice) for 2013 which was issued after a partnership had been fully terminated was in dispute before the tax courts. In its most recent decision, the Supreme Tax Court disagreed with the view of the tax court of first instance who has held that a profit assessment notice issued to a fully terminated partnership is always null and void.

   Categories: Supreme Tax Court cases

   Keywords: assessment procedures, assessment basis
5. 10.01.2025

   Reimbursement of tax on loss of earnings is subject to incom ...

   In a most recent decision, the Supreme Tax Court held that the income tax payable on the compensation for loss of earnings which was subsequently reimbursed by the tortfeasor (injuring party) is subject to income tax in the hands of the injured party.

   Categories: Supreme Tax Court cases

   Keywords: compensation payment, extraordinary inco ...
6. 27.12.2024

   Merger with retroactive tax effect: No offset of profits fro ...

   According to a recent judgment of the Supreme Tax Court, Section 2 (4) sentence 3 of the Reorganization Tax Act also prevents offsetting positive income generated during the retroactive period by the transferring legal entity with a loss carry-back of the acquiring legal entity from the following (post-merger) year.

   Categories: Supreme Tax Court cases

   Keywords: loss carry-back, retroactive merger
7. 27.12.2024

   No access to files under the General Data Protection Regulat ...

   Section 2a (5) no. 2 of the German Fiscal Code states that the provisions of the General Data Protection Regulation (GDPR) apply accordingly to information relating to identified or identifiable corporations. The GDPR does not contain a right to the inspection of files, the Supreme Tax Court said in a most recent decision.

   Categories: Supreme Tax Court cases

   Keywords: Personal data, Data Protection
8. 24.12.2024

   Trade tax add-back of advertising expenses

   In a most recent decision, the Supreme Tax Court held that the rental of advertising mediums paid by a service company might be added back for trade tax purposes provided the assets were to be fixed assets had the company itself been the owner.

   Categories: Supreme Tax Court cases

   Keywords: trade tax addback
9. 16.12.2024

   Changes of shareholders in a property-owning partnership

   When determining whether a corporation with a direct interest in the partnership owning real estate is considered a new shareholder within the meaning of Section 1 (2a) sentence 4 of the Real Estate Transfer Tax Act because at least 90% of the shares are transferred to new shareholders, only the shareholding in the corporation must be taken into account. In a most current judgment, the Supreme Tax Court held that a previous participation of the new shareholder of the corporation in the partnership owning the real estate is irrelevant in this respect.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, real property
10. 09.12.2024

    No VAT free sale of entire business if continued for the ben ...

    The proceeds from the sale of a self-contained business are not subject to VAT provided the sale includes all assets necessary for the purchaser to continue the operation. In a most recent decision, the Supreme Tax Court held that this only applies to services provided between the transferor and the transferee and does not include transactions that are supplied to third parties.

    Categories: Supreme Tax Court cases

    Keywords: VAT-free, sale of business
11. 09.12.2024

    No disallowance of partial write-down in Section 8b (6) sent ...

    In a recent judgment, the Supreme Tax Court held that Section 8b (6) sentence 2 of the German Corporation Tax Act as part of the tax exemption rules for dividends from participations in corporations and associations does not apply to savings banks that are organized as legal entity governed by private law.

    Categories: Supreme Tax Court cases

    Keywords: dividend exemption, investment write-dow ...
12. 03.12.2024

    No right to estimate the withdrawal of non-food items by ret ...

    An additional estimate by the tax office because of a breach of record-keeping obligations is not possible if the taxpayer (a sole trader in the food and non-food sector) was relying on the simplified record-keeping procedure granted to him by the Federal Ministry of Finance. The main issue in the case of dispute was whether the ministerial circular to that effect covers not only food but also non-food items.

    Categories: Supreme Tax Court cases

    Keywords: records, bookkeeping
13. 02.12.2024

    Taxation of benefits from a Swiss family foundation

    The Supreme Tax Court decided that the one-time cash payment and distribution of shares to the plaintiff from a Swiss-based foundation in 2017 (year in dispute) was subject to German income tax as income from capital investment pursuant to Section 20 (1) no. 9 of the German Income Tax Act. In its decision the court explained under which circumstances the income from such a benefit is economically comparable to a regular profit distribution.

    Categories: Supreme Tax Court cases

    Keywords: distribution, foreign foundation
14. 02.12.2024

    Calculation of gift tax for low-interest loans

    In a recent judgment the Supreme Tax Court held that the granting of a loan at an interest rate which is not customary in the market is subject to gift tax as gratuitous contribution. When calculating the interest advantage the standard (typically used) interest rate of 5.5% as mentioned in Section 15 (1) of the Valuation Act cannot be applied if a lower market value for comparable loans has been established.

    Categories: Supreme Tax Court cases

    Keywords: loan interest, low interest
15. 02.12.2024

    No income tax on redemption of a right to usufruct in GmbH s ...

    In a most recent decision, the Supreme Tax Court held that the termination of the right to usufruct is a non-taxable transaction if the holder of the right to usufruct over shares in a private limited company (GmbH) is not also the economic owner of the shares in the GmbH.

    Categories: Supreme Tax Court cases

    Keywords: share transfer, economic ownership
16. 02.12.2024

    No tax privileges for fundamentalist and extremist corporati ...

    In two recent decisions published on 28 November 2024, the Supreme Tax Court commented on the tax privileged non-profit status (public-benefit purpose) of extremist corporations and the presumption of conformity resulting from a Federation’s or a Land’s report on the protection of the constitution according to Sections 51 (3) sentence 2 of the German Fiscal Code.

    Categories: Supreme Tax Court cases

    Keywords: tax privilege, non-profit associations, ...
17. 25.11.2024

    Restrictions for amendment of tax assessment under Section 5 ...

    The correction of a final tax assessment notice pursuant to Section 50d (8) sentence 2 of the German Income Tax Act is only possible if – contrary to the provision in the double tax treaty - the employment income of an unlimited taxpayer has been wrongly included in the income tax assessment by omitting to produce proper documentation as required in Section 50d (8) Income Tax Act. It follows from this decision of the Supreme Tax Court that the possibilities of amending tax assessment under Section 50d (8) sentence 2 Income Tax Act are strictly limited and only apply in exceptional cases.

    Categories: Supreme Tax Court cases

    Keywords: documentation, correction of assessments
18. 25.11.2024

    Requirements for combining business operations of public bod ...

    On 21 November 2024, the Supreme Tax Court has published its decision on the requirements for the combination of business operations of public bodies in accordance with Section 4 (6) sentence 1 Corporation Tax Act which restricts the scope of application for grouping several commercial institutions. The judgment expressly contradicts the more generous view of the tax authorities on this subject as set out in the circular of the Federal Ministry of Finance (MoF) of 12 November 2009.

    Categories: Supreme Tax Court cases

    Keywords: Public Sector Entity (PSE), business fac ...
19. 20.11.2024

    Family foundation as financial institution as defined in Sec ...

    In a most recent decision, the Supreme Tax Court held that the legal form of an institution is not relevant for the qualification as financial company within the meaning of Section 8b (7) sentence 2 of the Corporation Tax Act to be read in connection with Section 1 (3) of the German Banking Act. Therefore, a family foundation under private law can also be considered as finance institution if they are primarily engaged in financial activities.

    Categories: Supreme Tax Court cases

    Keywords: family foundation
20. 19.11.2024

    Inheritance tax: Tax-free amount in case of parent deemed de ...

    German Civil Code in Section 2346 provides for a fiction of pre-death inasmuch as the person renouncing is excluded from intestate succession as though he or she had no longer been alive at the time of the devolution of the inheritance. The grandson of the deceased (the plaintiff) who had invoked this provision claimed the higher tax-free amount of €400,000 upon the inheritance. To no avail, as the Supreme Tax Court held in a most recent decision.

    Categories: Supreme Tax Court cases

    Keywords: inheritance tax allowance
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