Suspension – Execution – Interest – Additional tax payments – Application by the tax authorities
In the opinion of the Federal Fiscal Court
the current statutory rule of charging interest on tax refunds and back payments at 0.5% per month is not constitutional, at least from 2015 onwards. The court had granted an application to suspend the execution of a corresponding interest assessment.
The tax authorities intend to apply the ruling for interest periods from April 1, 2015 in principle in all cases in which the interest debtor appeals against the interest assessment and applies for a stay of execution.
Corresponding interest assessments should therefore be contested and a request for suspension of enforcement should be made.
The financial management
but also expressly points out that this provision should not be understood to mean that the administration doubts the constitutionality of the interest rate.
(Further comments & information on this can be found in our information letter 08/2018 under item 4.)