New ruling clarifies dispute over car tax
The test case: When the Lamborghini is too expensive for the tax office
An expert wanted to deduct his Lamborghini (new price €279,000) and a BMW (€89,000) for tax purposes. He had other vehicles for private trips, including a Ferrari. Nevertheless, the tax office rejected the claim:
Logbook: Illegible, therefore unusable.
Car too expensive: The Lamborghini is more of a prestige object than a business vehicle.
The result: tax assessments with high back payments.
But the man didn't give up and sued. He succeeded!
YouTube Video: Car Deduction Too Expensive for the Tax Office?
The ruling: Federal Fiscal Court strengthens the rights of taxpayers
After an initial defeat before the Munich Finance Court, the plaintiff appealed to the Federal Fiscal Court. The court overturned the ruling on December 19, 2024, stating:
Burden of proof:
The tax office must prove that a vehicle is used privately and may not rely on mere assumptions.Prestige is relative:
Whether a vehicle is “too luxurious” depends on objective criteria such as engine power, equipment or customer expectations – not on subjective assessments.Logbook and evidence:
Even if a logbook is illegible, the tax office must examine alternative evidence (such as transcripts).Proportionality:
Every argument put forward by the tax office must be economically and legally sound.
What the ruling means for you
With this ruling, the Federal Fiscal Court has set an important precedent: Your choice of company car is your entrepreneurial freedom. The tax authorities cannot simply reject your company car outright or make judgments about "appropriate" vehicles without clearly justifying their decision.
How to enforce your rights
Are you having a dispute with the tax office over your company car? With experience from groundbreaking test cases like the current one, TaxPro is at your side. Leverage our expertise and protect your rights – so your car doesn't become the subject of dispute. Act now!