Tax & Legal

Categories: All (3 found)

1. 30.09.2021

   Statutory interest rate unconstitutional: Ministerial circul ...

   The Federal Finance Ministry has issued a circular on the implementation of the decision of the Federal Constitutional Court of July 8, 2021 regarding the inappropriate statutory interest rate on late payment and refund taxes. The ministerial notice will have to be applied for the transitional period until retroactive new provisions on the interest rate pursuant to sections 233a, 238 (1) sentence 1 of the German Fiscal Code (AO) for interest periods starting on or after January 1, 2019 are in place.

   Categories: Official Pronouncements

   Keywords: statutory interest rate, late payment in ...
2. 18.08.2021

   Statutory interest rate levied on late payment or refund of ...

   In a decision on two joint cases published today the Constitutional Court decided that interest incurred on late payment of taxes (back taxes) and the interest paid for tax refunds pursuant to Sections 233a and 238(1) sentence 1 of the German Fiscal Code is not in line with the German Constitution insofar as the interest rate is set at 0.5% per month and for interest periods from 1 January 2014.

   Categories: Constitutional Court

   Keywords: statutory interest rate, late payment in ...
3. 22.05.2018

   Statutory interest rate levied on late payment of taxes no l ...

   The Supreme Tax Court has serious doubts as to the appropriateness of the current fixed rate of interest on late payments which is levied at a rate of 6 per cent per annum. This is especially relevant when considering the generally low interest rates level which have been charged in the market for some considerable time.

   Categories: Supreme Tax Court cases

   Keywords: Interest rates, suspension of payment, s ...