Deduction of income-related expenses in the event of liability for income tax on own wages

If a shareholder-managing director is liable for income tax on his own wages, the payments to the tax office are deductible as income-related expenses.

If the tax office holds the shareholder-managing director liable for the wage tax on the managing director's salary because the GmbH is insolvent, the payments on this liability debt are deductible as income-related expenses. The Federal Fiscal Court has confirmed that the payments are clearly attributable to the income sphere and are therefore income-related expenses. The prohibition on deducting tax payments does not apply here either, because the Federal Fiscal Court is convinced that the liability debt of the managing director is not itself an income or other personal tax, even if the debt results from such a tax.