The most important things for you this Monday:

Sebastian Reuter

Editor on duty.

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    1. Pension ruling at the Federal


    Fiscal

    Court

    2. Bold fraud with corona tests


    3. Dispute before state elections in Saxony-Anhalt


    4. Merkel talks to Macron about Belarus


    5. Will Netanyahu be replaced?


    6. German coach dominance in the Champions League


    7. That will be important this week

    1. Pension ruling at the Federal Fiscal Court

    Over twenty million people in Germany receive a pension.

    This Monday, the Federal Fiscal Court wants to announce two judgments on their taxation that could have a major impact.

    Negotiation:

    The process is about the question of whether the federal government will receive too much from the gradual conversion of pension taxation at the expense of pensioners, which will continue until 2040.

    The two plaintiffs, a former dentist and a former tax advisor, argue that this transitional phase results in a prohibited double taxation of pensions and contributions.

    If the Federal Fiscal Court also has doubts about the constitutionality of the current rules, pension taxation could again become a case for the Federal Constitutional Court.

    Background:

    The change in pension taxation has been going on since 2005. Before that, the employee's pension contributions were taxed “upstream”. From 2040 onwards, the pensions paid will then be fully taxed "downstream", not the contributions. In the 35-year transition phase, the tax burden on pension contributions will decrease. In 2025 these will be tax-free. At the same time, a steadily growing proportion of the pension has to be taxed, currently at 81 percent. The Federal Constitutional Court had given the federal government this change almost 20 years ago so that pensioners and retired civil servants are treated equally.

    Side aspect:

    Another aspect plays a role in one of the two negotiations: the question of whether the basic tax allowance should be included in the calculation of the tax-free portion of the pension.

    All taxpayers benefit from the basic tax-free allowance, not just retirees.

    This also applies to health and long-term care insurance.

    In earlier rulings, the Federal Fiscal Court basically confirmed the switch from upstream to downstream and did not criticize the inclusion of the basic tax-free amount.

    more on the subject

    2. Brazen fraud with corona tests

    The corona virus is spreading more and more slowly in Germany.

    However, there appear to be some scammers among the operators of the numerous test centers in the country.

    Fraud:

    Since March every citizen has the right to at least one corona test per week. The federal government bears the cost of 18 euros per test. Public prosecutors are now investigating several operators of corona test centers. You are said to have billed more rapid tests than were carried out. Apparently they did not even have to prove that they had bought the rapid antigen tests at all. It should have been sufficient if they only transmitted the (alleged) number of those tested without evidence. Health Minister Jens Spahn (CDU) announced that the controls would be intensified. "Everyone who uses the pandemic to criminally enrich themselves should be ashamed," Spahn wrote on Twitter.