Categories: Tax Court (48 found)

1. 27.01.2026

   Income from crypto lending of bitcoins subject to progressiv ...

   Recent developments in Germany have highlighted that income from crypto lending is taxed at the personal income tax rate as Bitcoin is not considered a legal tender for the purpose of capital gains taxation. The Cologne Tax Court confirmed this development and held that income from the transfer of the cryptocurrency Bitcoin in return for payment (known as crypto lending) is not subject to the 25% flat rate tax but taxable at the regular progressive scale rate.

   Categories: Tax Court

   Keywords: bitcoin, crypto transfer
2. 12.11.2025

   Taxation of portfolio dividends for family foundation

   In a recent decision, the Hamburg Tax Court commented on the deduction of income-related expenses in connection with dividends from portfolio investments paid to a family foundation who itself is not exempt from corporation tax.

   Categories: Tax Court

   Keywords: portfolio dividend, family foundation
3. 15.09.2025

   Düsseldorf Tax Court: Doubts as to whether the distribution ...

   Serious doubts as to whether a distribution of an estate will lead to a change in the shareholder structure of at least 90% of the shares in a property-owning limited liability company within the meaning of Section 1(2b) of the Real Estate Transfer Tax Act (RETTA)

   Categories: Tax & Legal News, Tax Court

   Keywords: real estate transfer tax, inheritance, T ...
4. 31.07.2025

   No inheritance tax if founders of trust have only limited po ...

   If the founder of an Anglo-American trust, validly established under Guernsey law, has not reserved any powers of control that would allow him to continue to freely dispose of the assets held in the trust, the assets concerned are legally considered to be independent (intransparent) and are not part of the founder's inheritance (legacy) upon his death. Inheritance tax is therefore not payable in such cases, the Tax Court of the state of Schleswig-Holstein said in a final decision.

   Categories: Tax Court

   Keywords: trust, foreign inheritance
5. 24.07.2025

   Taxation of carried interest under the DTA between the USA a ...

   The right to tax carried interest (i.e. the additional share of profits disproportionate to the capital invested) is vested in the country of residence either under Art. 21(1) Double Tax Agreement-USA (“DTA-USA”) (Other Income) or under Art. 13(5) DTA-USA (Capital Gains) if the corresponding income constitutes income from asset management and not income from business activities. In a recent decision, the Schleswig-Holstein Tax Court ruled on the treaty qualification of the carried interest received by a German resident shareholder (the intervenor) of a limited liability company established under the law of the US state of Delaware with its registered office and place of management in the US (the claimant).

   Categories: Tax & Legal News, Tax Court

   Keywords: double tax treaty, business income, part ...
6. 10.06.2024

   Withdrawal of tax credit in the wake of alleged cum-ex schem ...

   If it has been revealed during an external tax audit that a large portion of dividend payments from shares were part of so-called short sales and thus the withholding of capital gains tax appears doubtful (here: as being in connection with cum-ex trading), the tax office is entitled to revoke the tax credit granted earlier and reclaim the tax refund from the taxpayer. This was decided by the Tax Court of Hesse following a complaint regarding the suspension of payment.

   Categories: Tax Court

   Keywords: cum-ex, Capital gains taxation
7. 22.04.2024

   Recovery of withholding tax credited in the course of „cum/e ...

   The Hamburg Tax Court decided that the withdrawal of the refund or the credit of withholding tax in the wake of cum-ex schemes due to fraudulent misrepresentation is also possible if a third party committed the fraud.

   Categories: Tax Court

   Keywords: cum-ex
8. 18.03.2024

   ECJ referral: Higher gift tax for foreign family foundation ...

   The Cologne Tax Court has expressed doubts as to whether a family foundation based in Liechtenstein may be denied the inheritance and gift tax privilege applicable to domestic family foundations and has referred this question to the European Court of Justice for a preliminary ruling.

   Categories: Tax Court

   Keywords: gift tax, family foundation
9. 12.02.2024

   Death of business owner does not prevent tax audit for prior ...

   The Tax Court of the State of Hesse has dismissed an action brought by two sons who, as heirs, did not continue the business of their deceased father. A tax audit was announced for several prior years. The heirs objected in an appeal before the tax court. To no avail. In fact, they must tolerate and comply with the tax audit, the tax court says in a 2023 decision published in January 2024.

   Categories: Tax Court

   Keywords: tax audit, Business heirs
10. 17.12.2023

    Remuneration for work performed during preventive detention ...

    The Münster Tax Court decided that the income from work carried out in prison by a person placed in preventive detention is subject to income tax as remuneration from employment.

    Categories: Tax Court

    Keywords: employment income
11. 04.12.2023

    Excessive payments not tax-free as tips

    In two decisions, the Tax Court of Cologne decided that payments of EUR 50,000 and some EUR 1.3 million respectively made to authorized representatives of a GmbH do not generally qualify as tax-free tips but are rather part of the employment and subject to the personal income tax of the recipients.

    Categories: Tax Court

    Keywords: employment income, tax-free
12. 06.09.2023

    Profit allocation of cross-border pipeline operations

    In two decisions, the Düsseldorf Tax Court commented on the profit allocation regarding the operation of a transnational pipeline network between Germany, Belgium and the Netherlands through so-called pipeline operating sites which are permanent establishments from a tax point of view.

    Categories: Tax Court

    Keywords: permanent establishment (PE), profit adj ...
13. 01.09.2023

    Income tax on transfer of assets following dissolution of US ...

    The tax court of Muenster decided that the income from a dissolution of two US trusts be taxed as investment income in the hands of the beneficiary, except for income which accrued prior to 9 December 2010 (by protection of legitimate expectations).

    Categories: Tax Court

    Keywords: Liquidation, trust
14. 28.08.2023

    No gift tax on increase in shareholder’s value by way of dis ...

    In a recent ruling, the (lower) Tax Court of Hamburg decided that the disproportionate contribution to the free capital reserve of a partnership limited by shares is not a transaction that is subject to gift tax.

    Categories: Tax Court

    Keywords: gift tax, capital contribution
15. 21.03.2023

    Findings during cash inspection may warrant subsequent tax a ...

    Similar to a VAT inspection pursuant to Section 27b of the German VAT Act, the review of the cash-system (here: at a restaurant business) does not require prior notice or the specification of reasons. This was decided by the Hamburg Tax Court. In addition, the court held that the cash inspection allows an automatic follow-up tax audit if warranted by the facts determined during the cash inspection.

    Categories: Tax Court

    Keywords: tax audit
16. 30.10.2022

    No option for full income tax assessment for German citizen ...

    According to the Cologne Tax Court, the preclusion of German employees resident in Switzerland for full assessment of German income tax is contrary to EU law. The court has referred the case to the European Court of Justice (ECJ) for a preliminary ruling with respect to the Agreement for the Free Movement of Persons between the EU and Switzerland.

    Categories: Tax Court

    Keywords: employment income, free movement of pers ...
17. 12.10.2022

    Funeral speaker – art of the last moment?

    Can an eloquent funeral speech be of artistic nature or comparable to performing artists and thus fall under the categories of services subject to the reduced VAT rate of 7 percent? No – says a tax court of first instance.

    Categories: Tax Court

    Keywords: reduced rate VAT
18. 25.08.2022

    Services of a hygiene specialist not subject to VAT

    The Muenster Tax Court has ruled that services provided by a self-employed hygiene specialist to geriatric facilities and nursing homes are exempt from VAT under Article 132 (1) (g) of the VAT Directive.

    Categories: Tax Court

    Keywords: Medical care, health care, VAT Exemption
19. 19.08.2022

    Swiss inheritance tax to be credited against German gift tax

    If a gift is subject to inheritance tax under foreign law (here: Switzerland) because the donor dies within a short period of time after the donation, the tax is to be credited against the German gift tax pursuant to Section 21 Inheritance Tax and Gift Tax Act. With this decision, the Duesseldorf Tax Court upheld the claim of the plaintiff, who had residences both in the Canton of Lucerne and in Germany.

    Categories: Tax Court

    Keywords: tax credit, inheritance and gift tax
20. 19.08.2022

    No tax evasion if tax office has access to electronic wage t ...

    According to a recent ruling of the Münster Tax Court there is no tax evasion if the taxpayer on the one hand had failed to submit tax returns, but the tax office nevertheless has all the necessary information by means of the automated electronic wage tax certificates.

    Categories: Tax Court

    Keywords: Tax evasion, employment income, wage tax ...
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