Shortly before the decision of the Federal Fiscal Court on a possible double taxation of pensions, the social association VdK and the union IG Metall called for reforms in the taxation of pensions.

"If the Federal Fiscal Court finds that pensioners have been illegally asked twice by the tax authorities to pay, a new regulation must be adopted as soon as possible," said VdK President Verena Bentele to the newspapers of the Funke media group.

In this case, politicians must create “a just regulation”.

Bentele referred to a further need for new regulations in pension taxation.

“We urgently need a reform that primarily focuses on poor pensioners who can barely make a living from their old-age income.

Their small pensions must not also be taxed, ”demanded the VdK boss.

It is therefore necessary to increase the annual basic tax allowance from the current 9744 to 12,600 euros.

Tax return too complicated?

In addition, Bentele asked for a simplified tax return for pensioners.

It could not be that very old people are required to "fill out the much too complicated tax return".

A simplified procedure such as in Mecklenburg-Western Pomerania could serve as a model for a change.

There all pensioners could waive the filing of a comprehensive income tax return if they only had income from the statutory pension insurance, said Bentele.

IG Metall board member Hans-Jürgen Urban told the Funke newspapers that the current rules on the taxation of old-age pensions cause “great dissatisfaction and insecurity among employees and pensioners”.

For several age groups there is a "systematic double taxation", which IG Metall believes is unconstitutional.

"That is not acceptable," said Urban before the decision of the highest German tax court this Monday.

Federal Fiscal Court decides

The Federal Fiscal Court in Munich announced its decisions in two proceedings on double taxation of pensions this Monday morning. The processes that are relevant for many retired people are about the downstream taxation initiated in 2005 by the then red-green federal government. A week and a half ago, the judges indicated in the oral proceedings that they felt it was necessary to make improvements.

The implementation of the so-called downstream taxation is complicated under tax law, a long transition phase applies to the implementation until 2040. Many retirees complain of a double tax burden, first in working life and then again in retirement. However, this is constitutionally prohibited. More than 142,000 proceedings are pending in the tax courts across Germany. The rulings of the Federal Fiscal Court are likely to have groundbreaking significance for this and any other future proceedings.

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