Unpaid use of passenger car by spouse
The Federal Fiscal Court
has now dealt with the question of whether (unrestricted) private car use taxable according to the 1% rule is also permissible in the context of a mini-job (marginal employment up to 450 euros per month).
In the case in question, an entrepreneur employed his wife as an office and courier worker within the scope of a mini-job and left her a car for (unrestricted) private use without cost sharing. The employer-spouse credited the imputed income from the private use of the car to the remuneration, whereby in some cases only a small amount was paid out as remuneration.
The Federal Fiscal Court ruled,
that a corresponding remuneration in the form of a car loan does not stand up to an arm’s length comparison. In the opinion of the court, an unrestricted and, moreover, deductible-free transfer of use of a company car for private journeys to a “mini-jobber” from outside the family was unusual. As a rule, an (external) employer would only be prepared to allow an employee the private use of a company car if the costs calculated for this (in particular fuel for private journeys, etc.) plus the cash wage were in reasonable proportion to the value of the work performance. This was not the case in the judgment. Accordingly, the employment relationship was not to be recognized for tax purposes.
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