Constitutional Court cancels the ‘Fairness tax’
In its judgment of 1 March 2018, the Constitutional Court cancels the ‘Fairness Tax’
The Court cancels the provisions of the law of 20 July 2013 that introduced the ‘Fairness tax’ but upholds the consequences of the law for the assessment years 2014 to 2018 with an exception for the provisions that are in breach of the parent subsidiary directive on redistributed dividends.
In practice this means that the fairness tax can correctly be applied on dividends distributed for the assessment years 2014 until 2018 included. Nevertheless, ‘redistributed’ dividends that are in scope of art. 4 of the parent-subsidiary directive should be excluded from the taxable basis of the fairness tax.