The Regional Tax Court of Muenster held that a loss from the exchange of profit participation rights for shares in a registered cooperative (“eG”) and bonds may be set off against income from capital investments. Thus, the tax office’s attempt to regard the loss as belonging to the non-taxable private asset portfolio of the plaintiff failed. Continue reading
Tax & Legal
The Supreme Tax Court has held that a tax office cannot be required to issue a provisional assessment restricting the immediate deduction of the loss brought forward, merely because of the possibility that the remaining loss to be carried forward might be invalidated by a share transaction abroad at some future point in time. Continue reading
The Supreme Tax Court has referred to the Constitutional Court on whether a confiscatory effect of the loss offset deferral provisions can be a breach of the equal treatment requirement of the constitution. Continue reading
The Supreme Court has held that the initial full loss offset on €1 m applies to each period of assessment, rather than to each calendar year. Thus it can only be claimed once for a multi-year assessment. Continue reading
The Supreme Tax Court has held that the 1999 introduction of “minimum taxation” rules limiting loss offset by income type do not apply to a 1999 loss carried back to 1998.
The Supreme Tax Court has held that the 1999-2003 “minimum taxation” rules apply to “paper” losses, but not to those borne with true economic effect.