Tax Treaty Case Law around the Globe 2019
1. Aufl. 2020
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S. 2961. Is a soccer referee a sportsperson? Do all the activities of a company organizing concerts fall within the ambit of Article 17?
1.1. Facts of the case
The taxpayer is a resident of Germany. He acted as a referee at several soccer matches in Germany and abroad. Among others, he refereed German Premier League matches, UEFA Champions League matches, UEFA Cup matches, European championship qualifying matches and matches in the world championship organized by FIFA.
In Germany, persons exercising a business activity are subject to trade tax in addition to paying income tax. The issue in this case was whether the taxpayer had exercised a business activity and if yes, whether he was partly exempt from trade tax in Germany due to the exemption contained in article 23A(1) in connection with article 17 of the respective tax treaties.
The Court of First Instance held that refereeing a soccer match is not exercising a business activity and annulled the trade tax liability. The tax administration appealed against this decision and the Bundesfinanzhof (hereinafter: BFH) came to the conclusion that the activity of a soccer referee meets all the requirements of a business activity. As a result, the ...