Categories: Supreme Tax Court cases (494 found)

1. 05.12.2022

   RETT exemption in case of upstream merger of second-tier com ...

   The tax exemption from real estate transfer tax (RETT) in the event of restructuring within a group under Section 6a of the RETT Act also applies to cases where a dependent second-tier company is merged with a subsidiary of a group parent company, even if in the five years after the transaction 25 percent of the shares in the parent company are transferred to a new shareholder. In his decision the Supreme Tax Court held that the subsidiary must be regarded as “controlling company” within the meaning of the RETT Act.

   Categories: Supreme Tax Court cases

   Keywords: merger, RETT exemption, controlling memb ...
2. 22.11.2022

   Accrual of foreign source income and foreign tax credit

   Part of the fee payable by the foreign client which is initially retained in anticipation of a potential foreign withholding tax liability of the German self-employed contractor is not immediately subject to income tax in the hands of the latter. According to a ruling of the Supreme Tax Court, the fee withheld is only subject to German income tax if the foreign customer settles the foreign (withholding)tax liability incurred on the total amount of the agreed fees.

   Categories: Supreme Tax Court cases

   Keywords: foreign tax credit, accruall, foreign wi ...
3. 07.11.2022

   Supreme Tax Court: Knowledge test for prospective taxi drive ...

   In a recent decision the Supreme Tax Court held that the local knowledge test for aspiring taxi drivers is a VAT-free service. Although the tax office and the court of first instance had ruled otherwise for several reasons, the Supreme Tax Court referred to the overriding EU VAT Directive for its conclusion in the case of dispute.

   Categories: Supreme Tax Court cases

   Keywords: VAT Exemption, taxis
4. 03.11.2022

   Remuneration paid by employer for licence plate advertising ...

   In its judgement of 21 June 2022, published on 3 November 2022, the Supreme Tax Court decided that remuneration paid by an employer to its employees for advertising by the employer on the licence plate mounting frame of the employee's private car is remuneration for work if the "advertising rental agreement" concluded does not have an independent economic content.

   Categories: Supreme Tax Court cases

   Keywords: employment income, other income, salary ...
5. 01.11.2022

   “Tainting effect” of trading activity for trade tax purposes ...

   In a recent decision the Supreme Tax Court held that losses from a genuine business activity of an asset-management civil-law partnership (GbR) can lead to the reclassification of the otherwise asset-managing (non-business) activity as trading income if the so-called de minimis limit is exceeded.

   Categories: Supreme Tax Court cases

   Keywords: Asset & Wealth Management, trading incom ...
6. 26.10.2022

   No input VAT deduction if original invoice is amended to add ...

   According to the Supreme Tax Court, there is no retroactive right for input VAT deduction for a German company receiving services from other group companies who initially issued the invoices without VAT but later went to correct it. The correction of the invoice with retroactive effect requires that the original invoice already contains a VAT amount, which was not the case in the dispute before the court.

   Categories: Supreme Tax Court cases

   Keywords: corrected invoice, input VAT deduction
7. 24.10.2022

   Trade tax liability of real estate trading partnership not b ...

   The Supreme Tax Court decided that the actual trade tax liability of a real estate trader arises at the earliest with the conclusion of the purchase agreement for a first property. It is only after the completion of the purchase that he is in a position to offer his services on the market.

   Categories: Supreme Tax Court cases

   Keywords: Trade Tax Loss Carry-Forward, Real estat ...
8. 21.10.2022

   Supreme Tax Court confirms different VAT treatment of online ...

   In a resolution regarding the request for suspension of payment the Supreme Tax Court endorsed the different VAT treatment of terrestrial (physical) gambling versus VAT exempt online gambling. Furthermore, the court held that this unequal treatment is not contrary to the EU principles of fiscal neutrality.

   Categories: Supreme Tax Court cases

   Keywords: VAT Exemption, online game
9. 19.10.2022

   Input VAT deduction in case of staff reduction costs

   Services from so-called outplacement companies for individual support to permanent and indefinitely employed workers, in particular by means of so-called job application training, to help them find new employment relationships, qualify for an input VAT deduction. According to the Supreme Tax Court the entrepreneur is entitled to deduct input tax based on an overriding business interest while the employee's interest in the outplacement counseling is secondary.

   Categories: Supreme Tax Court cases

   Keywords: staff, input VAT deduction
10. 17.10.2022

    Trade tax: Dividend income exemption also in case of double ...

    According to a decision of the Supreme Tax Court, the dividend income exemption for trade tax on qualifying shareholdings is also available for distributions of companies of foreign legal form with its statutory (registered) seat abroad, provided the foreign company is comparable to a German corporation, has its place of management in Germany and therefore maintains a permanent establishment there.

    Categories: Supreme Tax Court cases

    Keywords: dividend exemption, trade tax addback
11. 04.10.2022

    Transfer of economic ownership in case of licensing of film ...

    According to the Supreme Tax Court the principles developed for leasing agreements regarding the attribution of economic ownership cannot be applied fully and without reservations to the transfer of the use of film rights.

    Categories: Supreme Tax Court cases

    Keywords: film, economic ownership, distribution r ...
12. 30.09.2022

    Sudden visit from tax office for inspection of home office

    The Supreme Tax Court decided that an unannounced inspection of an apartment by an official of the tax investigation department to check the taxpayer's information regarding the claim for home office is not justified and against the law if the taxpayer cooperates in clarifying the facts.

    Categories: Supreme Tax Court cases

    Keywords: Home office
13. 28.09.2022

    Allowable depreciation after acquisition of share in asset-m ...

    According to a ruling of the Supreme Tax Court, the shareholder (partner) of an asset-managing partnership who has acquired his share for a consideration, can claim depreciation on the jointly owned depreciable assets on a pro rata basis and only in accordance with his acquisition costs and the remaining useful life of the respective asset at the time the share was acquired.

    Categories: Supreme Tax Court cases

    Keywords: Asset & Wealth Management, partnership, ...
14. 26.09.2022

    Attribution of taxable income in fiduciary cases

    The Supreme Tax Court decided in the specific case of a Contractual Trust Arrangement that a fiduciary relationship within the meaning of Section 39 (2) No. 1 Sentence 2 of the German Fiscal Code which is recognized for tax purposes may still exist after insolvency proceedings were initiated over the assets of the trustor.

    Categories: Supreme Tax Court cases

    Keywords: trust, fiduciary
15. 14.09.2022

    Payments from German Sports Aid Foundation to be taxed as bu ...

    In a recent ruling, the Supreme Tax Court decided that payments made by the German Sports Aid Foundation (Stiftung Deutsche Sporthilfe) to an athlete constitute business income of the athlete and thus is not only subject to income tax but also trade tax.

    Categories: Supreme Tax Court cases

    Keywords: athletes, sports services
16. 13.09.2022

    No retroactive change of legal form effective for tax purpos ...

    In its ruling of 21 February 2022 (I R 13/19), the Supreme Tax Court rejected the tax office's appeal against the ruling of the Lower Saxony Tax and ruled that the (retroactive) change of legal form of a partnership into a corporation under Section 25 Sentence 1 in conjunction with Section§ Section 20 (1) Reorganisations Tax Act is prohibited for tax purposes if, at the time of the resolution to convert, the partnership changing its legal form no longer engages in a commercial activity

    Categories: Supreme Tax Court cases

    Keywords: partnership income, Reorganisation Tax A ...
17. 13.09.2022

    Liability of the Controlled Company arising after the termin ...

    In a recent case, the Supreme Tax Court decided that the liability of a controlled company (subsidiary) in a tax consolidation group (“Organschaft”) for the tax liability of its controlling company (parent in the Organschaft) is not necessarily limited to such taxes which arose during the existence of the Organschaft. The controlled company may be liable to the extent that the parent is required to pay tax on the controlled company’s turnover and may deduct input tax amounts from invoices for services obtained by the controlled company.

    Categories: Supreme Tax Court cases

    Keywords: VAT group, secondary liability, tax cons ...
18. 18.08.2022

    Update: ECJ referral: Input tax deduction of a management ho ...

    The Supreme Tax Court has asked the European Court of Justice (ECJ) for a preliminary ruling on the input tax deduction of a functional (operating) holding company from certain input costs.

    Categories: Supreme Tax Court cases

    Keywords: economic activity, input VAT deduction, ...
19. 15.08.2022

    VAT: Place of supply for boat excursions on the river Mosell ...

    The European Court of Justice (ECJ) was asked on the Value Added Tax (VAT) treatment of tourist navigation services on the stretch of the river Moselle over which both Germany and Luxembourg exercise joint sovereignty. The Luxembourg tax authorities issued VAT assessments to the Luxembourg tour operator as regards its transport services on the river Moselle. In conclusion, the ECJ noted that these services are subject to VAT in any case and the taxation by Luxembourg prevented Germany from imposing VAT.

    Categories: Supreme Tax Court cases

    Keywords: place of taxation, boat tours
20. 09.08.2022

    Inheritance tax exemption for family home not revoked if com ...

    According to a decision of the Supreme Tax Court, the inheritance tax exemption granted to the surviving spouse upon acquisition of the family home must not be revoked retroactively if its continued use for own residential purposes is impossible or unreasonable due to health reasons. The same applies to the tax exemption granted to children as heirs, the BFH said in another judgment from the same date.

    Categories: Supreme Tax Court cases

    Keywords: spousal residence exemption, inheritance ...
21. Load more