Prohibition of Deduction of Trade Tax Is Constitutional


The legislative concept of the Corporate Tax Reform of 2008 justifies fiscally motivated individual provisions.

The first senate of the Federal Fiscal Court (Bundesfinanzhof, BFH) dealt with the consequences of the far reaching Corporate Tax Reform Act of 2008 in a judgment dated 17 January 2014 (I R 21/12) and declared the amended concurrence between trade tax, income tax and corporate income tax as compliant with the constitution. The Court’s decision proves the broad tax legislative discretion of the German legislative body.

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Published In: Business Organization Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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