Dispute over double taxation of pensions - experts expect a landmark verdict this year

A landmark judgment on double taxation of pensions is expected from the Federal Fiscal Court.

It should fall this year.

Millions of Germans could be affected.

Update of March 16, 2021:

Millions of Germans are affected by the dispute, on which an important ruling by the Federal Fiscal Court (BFH) is expected in the coming months: Are pensions in Germany possibly taxed excessively?

Some experts at least assume that there will be double taxation on pensions in Germany.

In an interview with

fr.de

, the Saarbrücken financial mathematician Klaus Schindler, who developed a corresponding formula, explains using an example: “With a

retirement age in

 2020 and 35 years of contribution period,

i.e. contributions beginning

in 

1985, the taxable portion of the total pension contributions is around 40%.

In contrast, only 20% of the pension income is tax-free in the payment phase.

Instead, the amount should be 40%.

Conversely, this means that there is double taxation. "

Schindler also explains in the interview: “According to our calculation, double taxation applies at least to pensioners who retire from 2005 onwards.

At this point in time it is still relatively low, but continues to rise rapidly and in the retirement years 2022 - 2023 it reaches its maximum rate of 20 to 23% and, unjustifiably, the higher the greater the number of contribution years. "Only from the year In 2070, the first senior citizens would no longer be taxed twice, according to Schindler.

"For me as a financial mathematician, this construction is adventurous."

In the coming months, the Federal Fiscal Court will decide in two pending proceedings (BFH, XR 20/19 and XR 33/19), as reported by

wiwo.de

(as of March 10).

These judgments would have high financial consequences for millions of Germans - no matter in which direction they turn out, according to the portal.

For the state it is even billions.

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Article of January 26, 2021:

The year 2021 could be

an important

one for

taxpayers

.

A

groundbreaking judgment from the Federal Fiscal Court is

expected

this year

on the possible

double taxation of pensions *

.

As the portal

wiwo.de

reported a few months ago, the

dispute revolves

around the fact that the rules for taxing pensions are possibly unconstitutional.

Because they could, depending on how they are calculated, lead to double taxation, according to the portal.

But according to the Federal Constitutional Court, there shouldn't be.

So now the Federal Fiscal Court (BFH) should decide on the issue.

Also read

: More and more retirees have to file a tax return

Experts expect a groundbreaking verdict from

the

Federal

Fiscal

Court

this year.

According to the Evangelischer Pressedienst (epd), the hearing before the Court of Justice in Munich about a possible double taxation of pensions was originally expected for autumn 2020.

Due to the corona pandemic, however, the date has been postponed several times.

A decision is now pending in 2021.

The oral hearing was only postponed to January, reports the portal waz.de (as of January 25, 2021), now the second quarter of 2021 is targeted.

The Federal Fiscal Court wants to decide on the much-discussed taxation of pensions in the spring, writes the portal.

In essence, the question is whether there is currently at least some of the around 21 million pensioners facing unconstitutional double taxation, writes the portal.

The starting point is the corresponding lawsuit by a retiree.

+

Controversial issue of double taxation of pensions: Experts expect a groundbreaking verdict.

(Archive photo)

© Felix Kästle / dpa

Also read

: Pension: Don't forget your tax return - what those affected should know

The so-called

double control

, like the portal

finanzen.de.

(As of: January 25, 2021) reported on the occasion of the judgment to be expected this year, for many retirees and future senior citizens "a 

big and expensive nuisance

 ".

According to the report, depending on the individual situation, those affected lose 

several thousand euros

, which the tax office wrongly collects from their point of view.

This happens because the tax authorities levy taxes on the statutory pension, although taxpayers have already paid the contributions from their taxed income, the portal writes about the criticism.

However, the

issue has not yet been finally resolved

.

Many pensioners are likely to be all the more excited to see how the Federal Fiscal Court's judgment will turn out this year.

(

ahu) * Merkur.de and FR.de are offers from IPPEN.MEDIA.

Sources: fr.de;

wiwo.de;

finanzen.de;

epd;

waz.de

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List of rubric lists: © Felix Kästle / dpa