Categories: Tax Court (44 found)

1. 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
2. 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
3. 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
4. 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
5. 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
6. 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
7. 27.09.2023

   Adjustment of branch profit only if terms do not meet arm’s ...

   The Nuremberg Tax Court decided that the provision of Sec. 1 (5) in conjunction with Sec. 1 (1) of the Foreign Tax Act regarding the arm's length principle for cross-border determination of the income of a permanent establishment is not relevant and, to this extent, the ordinance on the allocation of profits of permanent establishments (Betriebsstättengewinnaufteilungverordnung) is also not applicable if there is no transfer pricing issue between a domestic permanent establishment and its foreign parent.

   Categories: Tax Court

   Keywords: permanent establishment (PE), arm's leng ...
8. 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 ...
9. 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
10. 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
11. 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
12. 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 ...
13. 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
14. 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
15. 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
16. 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 ...
17. 18.08.2022

    5%-taxation of cross-border merger gains compatible with EU ...

    The transfer gain following an upstream merger must be added back to taxable income of the parent corporation at 5% as non-deductible operating expenses according to Section 8b (3) Sentence 1 Corporation Tax Act in conjunction with Section 12 (2) Sentences 1 and 2 Reconstructions Tax Act. The Schleswig-Holstein Tax Court held this to be in accordance with the EU Merger Directive.

    Categories: Tax Court

    Keywords: non-deductible expenses, Upstream merger
18. 21.06.2022

    Tax exemption under a double tax treaty - amendment after as ...

    In a recent ruling, the Münster Tax Court had to decide on the income tax and treaty law treatment of a severance payment received by the plaintiff as a soldier in the British armed forces

    Categories: Tax Court

    Keywords: double tax treaty, tax exemption, correc ...
19. 05.06.2022

    Free movement of capital inapplicable in case German company ...

    In a most recent decision, the Regional Tax Court of Düsseldorf dismissed the claim of a Japanese corporation for a refund of withholding tax on the grounds that the case was within the scope of the EU principles for freedom of establishment which the plaintiff, being a resident of a third country, could not invoke.

    Categories: Tax Court

    Keywords: free movement of capital, freedom of est ...
20. 03.06.2022

    UPDATE: Credit of Canadian withholding tax on dividends also ...

    The Regional Tax Court of Hesse held that withholding tax levied in Canada on dividends distributed by a Canadian corporation to a German corporation should be credited against German trade tax. The tax authorities have in the meantime launched an appeal against this judgment and the case is now pending before the Supreme Tax Court for final clarification.

    Categories: Tax Court

    Keywords: withholding tax, foreign tax credit, tra ...
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