On 16 July 2026, the Federal Fiscal Court (BFH) authorised the publication of six judgements and rulings. The decisions cover topics ranging from trade tax and binding rulings to liability for tax evasion. Here is an overview of the key points.
When are several commercial enterprises merged into one?
Where a natural person carries out several commercial activities, the question arises, for the purposes of trade tax, as to whether these constitute a single business or several independent businesses. The Federal Fiscal Court (BFH) has clarified that the decisive factors in this regard are the similarity of the activities and their economic, organisational and financial interconnection. This can have a significant impact on the amount of trade tax payable, as the tax-free allowance is granted only once per business (judgement of 28 January 2026, X R 8/23).
Fees for binding information from the tax office
Anyone who applies to the tax office for a binding ruling – that is, who seeks a legally binding assessment of a planned project – must pay a fee for this. The Federal Fiscal Court (BFH) has now clarified that a separate fee may be payable for each individual application. The decisive factor here is the underlying factual circumstances as a whole. Furthermore, there is no limitation period for the assessment of these fees. This means that the tax office may assess them even after a considerable period of time has elapsed (judgement of 25 February 2026, II R 38/23).
Certificate of inheritance and shares in the estate in tax proceedings
In principle, tax offices and tax courts may rely on the shares of the estate stated in the certificate of inheritance. However, if there are serious grounds for believing that the content of the certificate of inheritance is incorrect, they are entitled – and indeed obliged – to determine the actual distribution of the estate themselves. This ruling is particularly significant in inheritance tax cases where the shares of the estate directly affect the tax liability (Decision of 29 June 2026, II B 68/25).
Extraordinary expenses in business valuation
When valuing company shares using the so-called simplified income approach, which is frequently applied for inheritance and gift tax purposes, extraordinary expenses may be excluded from the calculation. The Federal Fiscal Court (BFH) has clarified that it is irrelevant whether these expenses arose in the ordinary course of business. The sole decisive factor is whether they are not expected to have any further impact on the annual income that can be sustainably generated in the future (judgement of 6 May 2026, II R 2/24).
Liability for participating in tax evasion
Anyone who merely participates in tax evasion – for example, by acting as an accomplice – is, in principle, liable for the tax evaded. However, the Federal Fiscal Court (BFH) has ruled that the so-called ‘overriding of accessory liability’ under section 191(5), second sentence, of the German Fiscal Code (AO) does not apply in this case. Accessory liability means that liability is linked to the existence of the original tax liability. The special rule which sets aside this link applies only to the principal offender, not to participants (judgement of 21 April 2026, VII R 18/24).
What does this mean for clients?
These rulings demonstrate just how complex tax law issues can be in practice. Anyone who carries out several business activities, is planning to seek a binding tax ruling, or is involved in a succession case should keep an eye on the latest judgements. In such circumstances, it is generally advisable to seek individual tax or legal advice.
Source: Haufe: Tax
This post and the accompanying image were created with the help of AI and have been editorially reviewed.
