Tax & Legal

Categories: All (6 found)

1. 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 ...
2. 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 ...
3. 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, ...
4. 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
5. 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 ...
6. 06.02.2020

   No correction of incorrect income tax assessment in the even ...

   The Supreme Tax Court held in its ruling of 10 December 2019 (IX R 23/18) that a final tax assessment can no longer be corrected by the tax office under Section 129 of the German Tax Code (“GTC” - obvious errors while issuing administrative acts) if the incorrect assessment of a capital gain whisch was correctly declared by the taxpayer under 17 of the German Income Tax Act was not based on a mere "mechanical error".

   Categories: Supreme Tax Court cases

   Keywords: General Tax Code, assessment procedures, ...