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”. Continue reading
Tax & Legal
Issue 1 of the Tax & Legal News for 2020 contains includes news from the Supreme Tax Court and the Finance Ministry: Continue reading
On 28 January 2020 the Federal Finance Ministry issued a circular regarding the reporting of consignment stock transactions on the European Sales List. Continue reading
Midnight tonight the United Kingdom of Great Britain and Northern Ireland will leave the EU. From 1 February, a transitional phase until the end of 2020 will begin, which means that for the time being, the UK will remain within the internal market and the customs union. Is your business prepared for what may come? Some many open questions. The free PwC-Brexit Readiness Assessment Application can help. Continue reading
The Supreme Tax Court has doubts as to whether EU law precludes national case law which states that the decision to allocate an asset to private or business use must be submitted to the tax office by the end of the statutory period for submission of the annual VAT return. Accordingly, in a ruling of 18 September 2019 ( XI R 3/19 published on 30 January 2020) it has requested clarification from the European Union Court of Justice (ECJ). Continue reading
In its decision of 4 November 2009 (II B 48/19), published on 16 January 2020, the Supreme Tax Court held that Section 16(1) No. 2 Real Estate Transfer Act (“RETT Act”) did not provide for a time limit for the cancellation of purchase transactions. The special limitation period set out in Section 16 (4) RETT related to the cancellation of the agreement itself and not to the date on which an application was made to cancel the RETT assessment. Furthermore, in the circumstances, the cancellation was not a “retroactive event” within the meaning of Section 175 (1) Sentence 1 No. 2 of the General Tax Code. Continue reading
The Cologne Tax Court held in its decision (10 V 1706/18) published on 15 January 2020, that the wording of Section 8d (1) Sentence 5 of the Act did not contain a cut-off period according to which the application under Section 8d (1) CTA for continuance-bound loss carry-forwards must be filed in the first tax return – and only there. Continue reading
On 9 January 2020 the principal tax authorities of the Federal States issued a decree on the monthly average value for income tax purposes of the benefit-in-kind received by employees for the provision of electric bicycles by their employer. Continue reading
Services are provided to a bank operating automated teller machines (ATMs) which consist of setting up and maintaining these machines, replenishing them with cash and equipping them with hardware and software for reading the cash card data, forwarding authorisation requests for cash withdrawals to the bank which issued the cash card used, making the desired cash withdrawal and registering withdrawal transactions are not tax exempt supplies with the meaning of Section 4 No. 8 letter d of the VAT Act. This was the finding of the Supreme Tax Court on 13 November 2019, published on 19 December 2019. Continue reading
On 25 October 2019, the German Bundestag discussed the implementation of the climate protection programme 2030 into tax law. This was followed by a public hearing on 6 November 2019.
The bill for the implementation of the climate protection programme 2030 in tax law had been adopted by the Federal Government on 16 October 2019.
The amendments to the law will initiate tax measures designed to support climate protection in the areas of transport, housing and energy generation.
UPDATE: The Act has now been approved by the Bundestag (19 December 2019) and by the Bundesrat (20 December 2019) Continue reading