Deferred interest unconstitutional? Reference for a preliminary ruling - BFH of 08.05.2024 (VIII R 9/23)

September 6, 2024

While the interest rate for tax claims under Section 233a of the German Fiscal Code (AO) has now been reduced to 1.8% per annum, the interest rate for the suspension of execution is still set at 6% per annum.

The BFH doubts the constitutionality of this provision and is seeking a ruling from the Federal Constitutional Court as to whether the interest rate for the period from 1 January 2019 to 15 April 2021 is compatible with the Basic Law.