The retroactive denial of the deduction of income-related expenses for the costs of a first course of study or initial training contained in the "Act on the Implementation of the Recovery Directive and on the Amendment of Tax Regulations" - which was regulated until 2004 - is unconstitutional. This is the opinion of lawyer Norbert Rettner, editor-in-chief of WISO SteuerBrief.



Rettner explains his opinion in the current December issue of WISO SteuerBrief as follows: "With the new regulation - accepted by the Bundesrat on November 25 - the federal government wants to retroactively clarify that it has always wanted to exclude costs of first degree studies from the deduction of income-related expenses. In our opinion, this clarification is an ineffective retroactive effect. This is because the legislator must also be proficient enough in the German language to formulate laws in such a way that its intention is clearly expressed. If it has not succeeded in doing so in the past, as the Federal Fiscal Court found in several rulings in 2011, this is to its detriment and cannot be cured retroactively".



In its December issue, WISO SteuerBrief therefore recommends that affected taxpayers claim all costs for their first degree as income-related expenses and keep the relevant proceedings and tax assessments open. This issue - with all the information on the subject of "Deduction of income-related expenses for first degree studies" - can be requested free of charge here.



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