first Three models for the reform of municipal finances
on the current website of the Federal Ministry of Finance is at the second meeting of the Municipal Finance Commission 8 Reported in July. The formed within the Municipal Finance Commission Working Group on Local Taxes " reimbursed an interim report on the progress of work on the reform of municipal finances. The working group has the task of making proposals on the future of the business tax, including to present alternative models. Currently there are three alternative models of talking, the so-called test model, the local model and the model of the foundation market economy.
model of the foundation market economy
The foundation market economy has been in the context of the preparation of the Business Tax Reform Act 2008 in 2007 deals at length with a reform of business tax. At the time, the ideas of the foundation market economy were regarded as not feasible. As before, the model provides for the establishment of a municipal business tax, the introduction of a citizens 'tax and the communities' participation in wage tax revenue. Good chance I measure this model, not now, because it would represent a profound change for the collection of municipal finances. But the need is probably not big enough.
local model
The local model is to extend the business tax obligation apply to freelancers and at the same time broaden the tax base for the tax by the full coverage of the capital gains and the expansion of the add-back of financing charges. Since the reform is not supposed to be designed with the objective of increasing revenue but the revenue neutrality, it would, in return for broadening the tax base a general tariff relief be brought about by lowering base rate.
test model
The so-called test model provides, inter alia, to abolish the business tax law in its present form completely. To receive compensation for the municipalities will receive a supplement to income and corporation tax. This contract is to be decided by the municipality autonomously. This model was discussed in 2007 as part of the corporate tax reform in detail, but ultimately failed to a powerful lobby of the cities and towns.
Since the trade tax with a revenue of 31 billion € in 2008 to 26.4 billion fell in 2009, is the readiness of local authorities to consider such a reform, have increased considerably. Perhaps the pure Not now helps to a breakthrough in the reform of business tax site. This would be highly desirable because the business tax to be a foreign body in the German tax law.
second Business trips to maintain contacts with politicians are to make tax deductible
On 03/09/2010, the BFH is an interesting sentence spoken (VIII R 32/07, published on 09.06.2010). A taxpayer participated as a member a business delegation to travel abroad under the leadership of Prime Minister and Minister of Economic Affairs of his province. In addition, he and his wife also attended meetings of the World Economic Forum in Davos. The company is the sole shareholder of a corporation and, like his wife, board member of the AG. The cost of the cruise had taken over the AG.
Both the investment office of the Tax Office and the Tax Court evaluated the travels of the taxpayer as a predominantly led to private. Consequently, in the amount of travel expenses were approved financial benefits to the Executive and his wife were attributable as wages. The Tax Office amended the income tax assessments of the applicant accordingly and assessed additional income from employment.
The Tax Court dismissed the case after unsuccessful appeal and thus the case ended up in Federal Tax Court.
The BFH stated now that the intended trip abroad with a business contact with politicians and businessmen in the countries visited in terms of operational initiative of the trip at least then a mere general interest in the political or economic or socio-political information goes, if not ruled out that the participants use the expected information and contacts for his business aims. Also stressed the BFH, that may be in trade missions with high-ranking politicians for the selection of participants by the Ministry considered generally assume that they are representatives of companies involved, which are international or seeking.
pointed Against this background of the BFH the case to the court. The overall balance, whether a company is given the request or not, was there making. Much room is left to the Tax Court, of course.
is also interesting in that case represented the opinion of the BFH, that through the participation of the wife at the Economic Forum in Davos, ie, at an international meeting at the highest level, the protocol needs are considered. Therefore a private Mitveranlassung not then accept, if the applicant would not be members of the board of the Stock Company . In other words, the travel expenses of accompanying his wife are business expenses.
third confirmed Multiple application of the 1% rule
Now it's official. The so-called 1% rule is also applicable to all the entrepreneurs private use vehicle if it has a number of operational vehicles and can use them for private journeys (BFH ruling of 09.03.2010 - VIII R 24/08, published on 21.04 .2010).
Until that ruling, it was common for the financial management in cases where a taxable person uses multiple operating vehicles privately, from the most expensive vehicle 1% of the domestic list price taxed as private use of sampling. Which was founded at the time so that the taxpayer actually even now can not drive two cars simultaneously. This is indeed so, but only half the story.
Even if a vehicle is not moving, falling to so-called fixed costs. Depreciation, taxes and insurance, for example, even as operating expenses be borne by the company if the vehicle is stopped. These costs would not be subject to taxation of the use of sampling, when only the more expensive vehicle would be subjected to tax collection. Therefore, the confirmation of the BFH is consistently and correctly.
you have to assume at the next audit so that the tax authorities every time when several vehicles part of the operating assets, the contractor or by belonging to his private persons for private trips can be used, each of these vehicles for a flat rate of 1% - Method is taxed. Only when the taxpayer can demonstrate that operational vehicles are not used for private purposes (for example, so-called workshops) or only to those workers are left to use, for such vehicles, no standard value in use is determined.
Please think now of that scheme. If the auditor in the house, it is frequently too late to minimize a properly-run log book the amount of private mileage .
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