Elimination of exit taxation in the case of only temporary absence

In practice, Section 6 of the German Income Tax Act (AStG) will prove to be a significant obstacle to the departure of the shareholders concerned, at the latest after its tightening on January 1, 2022. Therefore, the relief associated with a merely temporary absence is all the more relevant. In its ruling dated December 21, 2022 (I R 55/19), the Federal Fiscal Court (BFH) has now decided, contrary to the established view of the tax authorities, that the exit taxation will also cease to apply retroactively if the intention of the taxpayers concerned to return was not demonstrable from the outset.