Limitation on loss offsetting for forward transactions

There are serious doubts as to the constitutionality of the maximum amount for offsetting losses from forward transactions.

In proceedings concerning the suspension of enforcement, the Münster Fiscal Court found that there are serious doubts as to the constitutionality of the limited amount of loss offsetting for forward transactions. Because the regulation introduced by the Annual Tax Act 2020, according to which the offsetting of losses for forward transactions is limited to a maximum amount of EUR 20,000 per year, treats investors differently depending on the type of investment, although there is no apparent difference in economic performance between the two groups, the tax court has serious doubts as to whether the provision is compatible with the principle of equality. The Rhineland-Palatinate Fiscal Court and the Federal Fiscal Court had previously ruled similarly in other suspension proceedings.