German Finance Court Set To Decide Against Share Tax
A report in the German media has revealed that the country’s Federal
Finance Court is questioning the legality of a tax on share sales, throwing Finance
Minister Hans Eichel’s budget plans into doubt.
According to the report in Handelsblatt, legal sources close to the situation
claim that an unpublished decision will rule that the capital gains tax regime
on speculative share gains introduced in 1999 is unconstitutional. Prior to 1999, private investors who sold a security less
than six months after buying it had to pay tax on the proceeds. In 1999, this period was extended to one year. The finance ministry has played down the impact that the ruling may have on its budget plans, although observers believe a decision rejecting the tax could hamper Eichel’s attempts to bring down Germany’s budget deficit. The report indicated that the court’s final decision on the matter is likely to be published next year. .
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