Haeuslebauer12
2012-02-16 10:45:28
- #1
Older article from Stiftung Warentest
A property developer advised us to file an objection. Does anyone have experience in this regard and especially are there any template drafts (preferably also via PM), as this case could also apply to our construction project. Although the Münster Tax Court ruled to the contrary several years ago, a glimmer of hope remains.
Many builders, according to the Lower Saxony Tax Court, have to pay excessively high real estate transfer taxes. Often the tax office demands the tax of 3.5 percent (4.5 percent in Berlin) not only on the purchase price for the land but also on the construction costs. This happens when the purchase contract for the land and the construction contract form a "single subject of performance" as in the case of a purchase from the property developer.
The Federal Finance Court, the highest German court for tax matters, has so far confirmed this practice. The Lower Saxony Tax Court, on the other hand, speaks of a "national burden cocktail" that could violate European law. Because builders have to pay twice for construction services, value-added tax and real estate transfer tax.
Such multiple burdens are to be avoided according to a European Union directive. The judges have now submitted the case to the European Court of Justice (ECJ), which is to review the German tax practice.
Tip: File an objection against your still open real estate transfer tax assessment notice. Refer to the decision of the Lower Saxony Tax Court (Case No. 7 K 333/06) and the ongoing proceedings before the ECJ.
A property developer advised us to file an objection. Does anyone have experience in this regard and especially are there any template drafts (preferably also via PM), as this case could also apply to our construction project. Although the Münster Tax Court ruled to the contrary several years ago, a glimmer of hope remains.