Legal Sources of Taxation Quiz

Study Notes

Legal Sources of Taxation

International Laws
- General rules of international law
- EU Law
  - Directives - Must be implemented into national laws
  - Regulations - Directly applicable in EU member states
- Double Taxation Agreements - Treaties between two states to limit double taxation, have equal status with tax laws

Legal Interpretation

European Court of Justice (ECJ) - Luxembourg
German Constitutional Court (BVerfG) - Karlsruhe
Federal Finance Court (BFH) - Munich
Finance Courts (FG)
- Hessen: Kassel
- Rhineland-Palatinate: Neustadt an der Weinstrasse
- NRW: Cologne, Dusseldorf, Münster
- Schleswig-Holstein: Kiel (only two-tiered jurisdiction in tax and customs)

Administrative Documents

Guidelines from the Federal Government
- Income Tax Regulations (EST)
- Corporation Tax Regulations (KStR)
- VAT Application Ordinance (USTAE)
Letters from the Federal Minister of Finance (so called BMF letters)

Domestic Norms

Basic Law, Tax Laws, Regulations, Ordinances
- Regulations examples:
  - Income Tax Implementation Ordinance (EstDV)
  - Municipal ordinance setting the property tax rate
- Ordinances - Municipal ordinances setting the rate for the property tax

Issuances from Regional Finance Authorities

Hessian Ministry of Finance (e.g.)
Senate department for finance Berlin (e.g.)
Coordination conventions between countries
Special Directives:
- States taxes such as property taxes, inheritance taxes

Legal Sources of Taxation

International Norms:
- General rules of international law: Set the foundation for international tax law.
- EU Law:
  - Directives: Must be implemented into national laws by each country.
  - Regulations: Directly applicable laws in all EU member states.
- Double taxation agreements (DTAs): Bilateral treaties between two countries to prevent double taxation. Equivalent legal weight to tax laws.
Domestic Norms:
- Basic Law (Grundgesetz): Germany's constitution; serves as a foundation for taxation.
- Tax Laws (Steuergesetze): Key source of tax law, including Income Tax Act (EStG), Corporate Tax Act (KStG), Value Added Tax Act (UStG).
- Regulations (Verordnungen): Detailed instructions on implementing tax laws, such as Income Tax Implementation Ordinance (EStDV).
- Ordinances (Satzungen): Issued by municipalities, establishing rates for local taxes like property tax.

Legal Interpretations

European Court of Justice (ECJ): Highest court in EU; interprets EU law.
German Constitutional Court (BVerfG): Highest court in Germany; reviews constitutionality of legislation.
Federal Finance Court (BFH): Highest court for tax matters.
Finance Courts (FG): Regional courts for tax disputes.
Hessian Ministry of Finance, Senate department for finance Berlin: Example of regional finance authorities issuing interpretations and guidance on taxes.
Coordination conventions between countries: Agreements between German states to harmonize tax interpretations.
Issuances from regional finance authorities: Provide practical application guidance on state taxes.

Administrative Documents

Guidelines of the Federal Government:
- Income Tax Regulations (EST): Official regulations governing income tax law.
- Corporation Tax Regulations (KStR): Regulations pertaining to corporate income tax.
- VAT Application Ordinance (USTAE): Regulations for applying Value Added Tax (VAT).
Letters from the Federal Minister of Finance (BMF letters): Official guidance on the interpretation and application of tax laws.

Special Directives

Special Directives are issued for specific state taxes like property tax, transfer tax, and inheritance tax. They provide detailed instructions on how these taxes should be applied.

Description

Test your knowledge on the various legal sources of taxation, including international laws, EU law, and specific regulations such as income tax and VAT. This quiz covers important rulings and guidelines from courts and administrative documents. Perfect for students of tax law or those looking to refresh their understanding.