Munich The tax deduction prohibition for the bank levy is constitutional according to the judgment of the Federal Fiscal Court. The bank levy was introduced in 2014 after the financial crisis, on the one hand to curb risky business models and on the other hand to finance a restructuring fund with the contributions.
The ban on applying this bank levy to tax as profit-reducing business expenses does not violate the principle of equality in the Basic Law, the Federal Fiscal Court announced on Thursday in Munich.
It is true that the prohibition on deduction restricts the principle that operationally incurred expenses must be deductible when determining income. However, the top tax judges declared that this restriction was adequately justified. In doing so, they rejected the appeal of a bank against a judgment by the Münster Finance Court.
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