CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. German Finance Court Set To Decide Against Share Tax

German Finance Court Set To Decide Against Share Tax

by Ulrika Lomas, Tax-News.com, Brussels

28 December 2004


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According to the report in Handelsblatt, legal sources close to the situation claim that an unpublished decision will rule that the capital gains tax regime on speculative share gains introduced in 1999 is unconstitutional.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.

However, the court ruled that this measure violated the constitution, as it did not treat all investors equally.

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.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »