Online message – Thursday 07/13/2023
trade tax | Extended trade income reduction with reverse BAS (FG)
The extended reduction according to § 9 No. 1 Clause 2 GewStG is generally excluded if the administration or use of one’s own property exceeds the limits of commercial activity. This is particularly the case if the real estate company generates (original) commercial income as a result of a business split-up as a holding company (FG Munich, judgment of April 17, 2023 – 7 K 434/19; revision pending, BFH Az. III R 13/23 ).
Facts: It is disputed whether the plaintiff is entitled to claim the extended reduction in accordance with Section 9 No. 1 Clause 2 GewStG (notification of trade tax base amount for 2015 of January 23, 2019). The plaintiff is A Immobilienverwaltungsgesellschaft mbH. In the disputed year 2015 up to November 4th, 2015, 47.62% were held by F and 52.38% by the investment company…