Arbitrary utility payment is not a special expense

A pension benefit that is not regularly paid in the agreed amount is not tax-deductible as a special expense.

Special expenses also include the pension benefits agreed upon in the event of a business transfer, which are paid to the previous business owner. However, the contractual partners must actually fulfill the obligations entered into - the benefits must be provided as agreed. Admittedly, it is in the nature of things that the contractual partners react appropriately to changes in needs and other circumstances. If, on the other hand, the payments are made in irregular amounts without this being justified by changes in circumstances, they are not to be recognized as a special expenses deduction, according to a ruling by the Münster Tax Court.