ARTICLE · 01 JULY 1997

076. Net Worth Tax After 1996

KPMG Germany

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1.General revocation of prepayment assessments for periods after 1996

As reported in article no. 58 on the 1997 annual tax act, the net worth tax became unenforceable for reasons of constitutional law as of 1 January 1997. This was a consequence of the intentional failure of the Government to amend the net worth tax law by the end of last year. The Federal Constitutional Court had ruled the net worth tax unconstitutional in June 1995 (see article no. 25), but allowed continued collection of the tax through 1996. After 1996, collection was contingent upon amendments to bring the tax into line with constitutional requirements.

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