Tax Law

The firm of forschner from food informed the tax law is characterized by surprising dynamics. Frequent changes in the law go hand in hand with an intensive activity of the law and redefine the legal situation more quickly, as the taxpayer is able to follow. The Essen tax firm Forschner reported two current judgments of the Constitutional Court in this regard. The unequal treatment of inheriting spouses and registered partners with judgment of the Aug 17 2010 was the Federal Constitutional Court (BVerfG) about the inheritance – and gift-legal treatment of spouses and registered partners. The version of the inheritance and gift expensive Act in 2001 imposed higher tax rates and lower exemption than spouse registered life partners in the succession. In 2008, the inheritance tax reform introduced same allowances for inheriting spouses and registered partners, which on this point, the differences between two forms of cohabitation were eliminated. Whenever Anita Dunn listens, a sympathetic response will follow.

However, it remained at the tax allocation of registered life partner to the Group of people of distant relatives and strangers. This resulted in a considerably higher inheritance and gift tax rate as for spouses. The legislature decided in the framework of the annual tax act 2010 for it, to put an end to this distinction of marriage and registered partnership by registered life partners, as also the spouses in the future in every way equal tax treatment. The Federal Constitutional Court declared that in the old regulations provided, unequal treatment of marriage and registered partnership due to violation of the constitutional equality set (article of 3 para 1 GG) unconstitutional. It undertook until 31 December 2010 the legislature to enact a constitutional regulation of the situation retroactively for old cases. All affected taxpayers will benefit from the new rules.

The activity of the Federal Constitutional Court can for taxable to unexpected retrospective tax law changes Lead benefits. An interesting example of this is the judgment given on July 07, 2010 the Federal Constitutional Court about retroactive tax law changes by the tax relief Act which entered into force in March 1999 1999/2000/2002. Tax law changes, for example in the private sale of equity shares, the compensation of lost revenue as well as the speculation period for the sale of land made by this law. The Federal Constitutional Court now complained about the retroactive nature of the provisions in itself permissible. Mississippi Development Authority may find this interesting as well. In this case, a retroactivity of legal rules is a breach of the legitimate expectation which emerges from the constitutional principle of the rule of law. Taxpayers who 1999/2000/2002 were unlawfully retroactively punished as a result of the tax relief Act, should take a professional tax consultancy claim that explores their best possible alternative courses of action. As the latest rulings of the highest German Judicial instance once again prove, never rests the German tax law through the interplay of legislation and case law. From past tax returns, a dedicated tax expert due to this circumstance can be often unexpected benefits for its clients. Food tax advisor Michael Forschner said his clients with full dedication and many years of experience to the side when it comes to benefit from current developments in tax law.