- The case involves the application of the average rate taxation for the sale of sport, racing, and tournament horses.
- The plaintiff operates a horse breeding and trading business and generates income from agriculture and trade.
- The plaintiff purchased and trained several horses for resale.
- The tax authority initially agreed with the plaintiff’s tax return, but during an audit, it was determined that the average rate taxation does not apply to the sale of purchased horses.
- The tax authority issued a revised tax assessment, which the plaintiff objected to, but the objection was unsuccessful.
- The court ruled that the plaintiff’s appeal is unfounded and upheld the tax authority’s decision.
- The plaintiff is responsible for the costs of the appeal.
Source: bundesfinanzhof.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
