The periodbefore 1918
500 years of tax jurisdiction from the Reich Chamber Court at the end of the 15th century to the Federal Fical Court today
First steps towards independent tax jurisdiction
Copyright: Johann Jakob Dorner the Younger (1775–1852)
Since the end of the 15th century, the Reich Chamber Court had had jurisdiction to settle financial disputes concerning the first general imperial tax. After the dissolution of the old empire in 1806, constitutional changes gradually led to the separate development of ordinary and administrative jurisdiction. In most countries, this led to the administrative courts having fundamental tax jurisdiction. Since then, efforts have also been made to establish the independence of fiscal jurisdiction.
Did you know that...
... in the mid-19th century, the idea of independent tax jurisdiction was first implemented in law in Baden?
In 1848, laws were enacted in Baden concerning the establishment of cadastral registers and the creation of tax courts. Tax courts provided for in these laws were independent of the tax authorities and ruled as the highest instance in tax matters.
In the second half of the 19th century, the idea of judicial control over the activities of the financial administration gained acceptance in almost all German states. Administrative courts (administrative tribunals) were established as the highest instance for all administrative disputes, including those relating to taxation, which was largely a matter for the federal states. However, the Reich Court was the court of last resort for imperial taxes under the Inheritance Tax Act, the Reich Stamp Act and the Act on Personal and Goods Transport Taxes. For other important levies, namely military service contributions, war taxes and property taxes, the regulation of judicial review was left to the respective state laws. For this reason, some cases had to be decided by the regional administrative courts as the highest instances and some by the Reich Court as the court of last resort. Legal protection in tax matters was therefore regulated in an inconsistent and confusing manner.
During the First World War, the Reich's tax revenues had to be increased significantly, among other things by levying a general indirect tax, the turnover tax, which was initially introduced in 1916 in the form of a turnover tax stamp. This gave rise to the need to establish a supreme court whose decisions would ensure the uniform application of important imperial tax laws throughout the entire territory of the empire. Consequently, the Act of 26 July 1918 on the Reich Fiscal Court was enacted during the imperial era.
1918
– 1933
Establishment and expansion of the Reich Fiscal Court
The history of Germany's highest fiscal court began in Munich in 1918.
Copyright: Federal Fiscal Court
The newly established Reich Fiscal Court is granted full status as an independent court. It is equal in every respect to the Reich Court. Its members are not subject to any instructions in personal or professional matters (judicial independence).
With effect from 1 October 1918, the Reich Fiscal Court was given jurisdiction not only over final decisions on turnover tax matters, but also over other Reich taxes, such as the defence contribution, property taxes, war taxes, inheritance tax, transfer taxes and coal tax. In contrast, customs duties and excise duties were not yet subject to the jurisdiction of the Reich Fiscal Court.
Copyright: Federal Fiscal Court
First President of the Reich Fiscal Court Gustav Jahn Farewell speech, 31 December 1930
„Gentlemen, when I look back on the 12 years in which the Reich Fiscal Court has been active, I can say that I am filled with a sense of pride and satisfaction, for during this time the Reich Fiscal Court has earned a respected position and gained high recognition in all circles.”
Did you know that...
... terms used in today's tax law, such as ‘business expenses’ or ‘remuneration’, date back to decisions made by the Reich Fiscal Court between 1918 and 1933?
1933– 1945
Tax jurisdiction under National Socialism
The Reich Fiscal Court loses its status as an independent court of law.
Copyright: Bavarian State Library
During the Nazi era, the Reich Ministry of Finance significantly influenced the decisions of the Reich Fiscal Court in line with Nazi ideology and treated the court as a subordinate department subject to its instructions.
Copyright: Austrian National Library
State Secretary in the Reich Ministry of Finance Fritz Reinhardt Speech for the inauguration of the President Ludwig Mirre, 13 April 1935
„From my remarks ... it can be summarised that, in the National Socialist state, the Reich Fiscal Court must assist the Reich Minister of Finance in interpreting tax laws and developing tax law in accordance with the principles of the National Socialist world view.”
Did you know that...
... tax laws in the so-called Third Reich were enacted by the government without the involvement of parliament?
The case Milch
RFC file number IV 47/41. The appeal proceedings of Dr. Friedrich Milch show that Jewish plaintiffs were disadvantaged by the RFC. The Reich Ministry of Finance exerted pressure on the RFC to ensure that the desired judgement was handed down.
1945– 1950
Establishment of the Supreme Fiscal Court
The Allies reorganise the judiciary after the end of the Second World War.
Copyright: Federal Fiscal Court
After Germany's surrender, the Reich Fiscal Court ceased its activities. The Allies reorganised the judiciary in their respective zones on a decentralised basis. In July 1945, they permitted the establishment of the Supreme Fiscal Court. Initially, this court was only responsible for the Free State of Bavaria and the American zone. After the founding of the Federal Republic of Germany in May 1949, the Basic Law stipulated that a Federal Supreme Court would be established for financial jurisdiction.
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Copyright: Federal Fiscal Court
Certificate appointing the President of the Surpreme Fiscal Courtgerichtshofs, 25.07.1945
„It is your duty to remove from office and not reappoint any persons who were actively involved in the National Socialist German Workers' Party. You must eradicate from your area of responsibility anything that constitutes discrimination on the basis of race, faith or political conviction.”
Did you know that…
... on 19 May 1948, the Bavarian State Law on the Restoration of Financial Jurisdiction was a decisive basis for enabling independent tax jurisdiction after the Second World War?
‘Section 5 (1) The Supreme Fiscal Court in Munich shall decide on appeals. (2) The provisions of Sections 52 to 66 of the Reich Tax Code shall apply mutatis mutandis, in particular with the proviso that the President and members shall be appointed by the Bavarian Prime Minister.’
1950– today
Establishment of the Federal Fiscal Court
Since 1950, the Federal Fiscal Court has been Germany's highest court for clarifying tax and customs law issues.
Copyright: Federal Fiscal Court/Photo Peter-Paul Weiler
The Basic Law, which came into force in 1949, stipulates that judges are independent and subject only to the law. This also applies to the members of the Federal Fiscal Court, which was established in 1950.
The judges monitor the activities of the tax authorities, thereby ensuring legal protection for taxpayers. As the court of last resort, the Federal Fiscal Court is responsible for interpreting tax laws and ensuring their uniform application throughout Germany.
Copyright: Bavarian State Agency
Federal Minister of Finance Friedrich Schäffer Speech on the establishment of the Federal Fiscal Court, 21 October 1950
„Unlike in the past, the new FFC is not an assistant to the Federal Finance Administration; it is intended to be the independent guardian of legal principles in the field of taxation [...].”
Did you know that...
... the Federal Fiscal Court was the first of the five supreme courts of the federal government mentioned in the Basic Law to be established, back in June 1950?