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In article no. 102, we reported on questions referred to the European Court of Justice (ECJ) regarding the legality of certain trade tax addbacks to the taxable earnings and capital of lessees of personal (moveable) property. The addbacks generally only apply if the lessor is a foreign person.

According to an administrative order issued by the Magdeburg Regional Tax Office dated 30 January 1998 (DB 1998, 548), the state tax authorities have unanimously decided not to grant requests for stays of collection of tax in other proceedings posing the same issues. They will, however, suspend assessment in such cases pending the decision of the ECJ.

The refusal to grant a stay of collection is surprising in light of rulings by both the Federal Tax Court and the Muenster Tax Court which justify such a stay (see our previous article). Taxpayers would thus appear well advised to litigate the denial of their request for a stay of collection.

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