The Bundesfinanzhof decision to tax on pensions this year

The Federal Finance court (BFH) is to decide in the current year over the controversial pension taxation. The BFH spokesman Volker Pfirrmann said the "süddeuts

The Bundesfinanzhof decision to tax on pensions this year

The Federal Finance court (BFH) is to decide in the current year over the controversial pension taxation. The BFH spokesman Volker Pfirrmann said the "süddeutsche Zeitung". Because of the importance of the matter, there are going to be in Munich a hearing, unless the plaintiff is contrary to the explicit reference to the tax secret. Against the pension taxation a retiree has sued.

Since 2005, taxed pensions to a growing share. What proportion is affected by the so-called downstream taxation, depends on the year of Retirement. In the case of pensioners who have gone before in 2006, in pension, 50 per cent of the remuneration subject to tax. This tax free proportion shrinks for later cohorts. From 2040, then public pensions will be fully taxed.

criticism of double-taxation

While expenditures for retirement during the working life increasingly tax-free, but critics see in the scheme by the Federal constitutional court prohibited double taxation. "The double taxation of pensions leads to a disproportionate burden on small and medium incomes," said the group Vice of the FDP group in the Bundestag, Christian Dürr, the "süddeutsche Zeitung". "Olaf Scholz, now has to Wake up and make it clear how the risk of double taxation can be prevented."

The court-judge Egmont Kulosa had already been represented in the past year, the view, the pension taxation was unconstitutional, reported the "Süddeutsche Zeitung" at the time.

Updated Date: 09 July 2020, 22:19

You need to login to comment.

Please register or login.

RELATED NEWS