MIL OSI Translation. Region: Germany / Deutschland –
Source: CDU CSU
Dear Madam President! Dear Colleagues! Don’t worry, I’m not quoting a Marx or Engels quote.
(Applause from members of the CDU / CSU – shouts from LEFT and BÜNDNIS 90 / DIE GRÜNEN: Oh!)
But I am grateful to the FDP for this proposal; Because the topic of the necessary extended loss carry-back has gained significantly in importance, especially in view of the measures currently taken for November and the second corona wave. That is why we naturally brought this topic up again in the course of the negotiations on the 2020 Annual Tax Act.
As part of the deliberations on the Second Corona Tax Aid Act, in addition to our efforts, there was another good proposal from the FDP, incidentally also a good proposal from the Greens. If you look at today’s proposal from you, dear colleagues of the FDP, you can see that the list clearly shows the proponents of an extended loss carry-back. These are actually all economically relevant actors, they are all politically relevant actors. All that is missing is the SPD and the Left, who unfortunately continue to refuse this issue.
With the Second Corona Tax Aid Act, we were able to talk about small improvements together and implement them – the loss carry-back from 1 million euros was increased to 5 million euros, in the case of joint assessments it was increased from 2 million euros to 10 million euros -; but, dear colleagues, that is not enough.
Perhaps we have to explain again – it was presented a little ambiguously earlier – how the tax loss carry back actually works. According to the principle of taxation based on performance, profits and losses should be able to be offset against each other. Since we have a section taxation, i.e. annual taxation, you have to find a legal instrument with which you can offset losses in one assessment period with losses and gains in other periods. Section 10d in the Income Tax Act offers this possibility. Here it is regulated that you can carry back losses up to 5 million euros a year. The excess losses can be carried forward up to an amount of 1 million euros for a further ten years. The rest is only set at 60 percent.
So, we already have a breakthrough in terms of performance-based taxation. We want to change that. We do not need a minimum taxation in this regard, we need a change in the loss carryforward. That is why we cannot approve your proposal today. We’ll discuss it again; because the essential part of the loss carryforward is missing, which we would like to have.
Dear colleagues, what is the core? The key is that we help entrepreneurs – my colleague Bayaz said it correctly – to get the necessary liquidity on their own. On your own! What would that mean? We would have to pay less aid. We would also have to take less money in hand and give it into the world. Rather, we could strengthen the company’s own strength. That is the right approach.
The extension of the loss carry-back, which you reject, only applies to those who also pay taxes in Germany. Anyone else who does not pay taxes in Germany would not be able to carry back any losses.
(Lothar Binding [Heidelberg] [SPD]: Who carried back the loss?)
In this respect, there may also be a possibility that you can agree. I tell you: This is a pure postponement – my colleague Fritz Güntzler also mentioned it in his speech – we are now giving the companies back the tax by giving them a larger loss carry-back; but they’ll pay taxes again much quicker when profits are made, and we hope that profits will be made again as soon as next year.
Dear colleagues, I really do not understand your blockade there. It is not a question of privileging companies or medium-sized companies, it is really about maintaining the efficiency of our companies. If we do not do that, dear colleagues of the SPD, then there will have to be more aid, and it will also lead to more job cuts in Germany. It is therefore imperative that we tackle this issue now. When should we tackle it if not now? We have to pack it into the 2020 Annual Tax Act. Now the crisis is here. If we do that in a year or two, the whole thing will fizzle out. That is why we want to do it now and that is why we are campaigning to find a solution together.
Of course we can talk about it: what period do we take? Do we take two years, three years, five years of loss carry-back? How long do we take for the loss carryforward? What height do we take? – These are all topics that we can discuss. But we have to get on with it, and we finally have to get a rethink here so that we can give companies their own strength. We are proud of those companies – I have to say this again – that have paid a lot of taxes in Germany in the past. That’s our industry and our medium-sized companies, dear colleagues.
(Applause from the CDU / CSU)
In order to stick to the imagery of Olaf Scholz, I would like to say to you, as colleagues of the SPD, specifically, and only for the area of corporate taxation: We really have to be careful that the boom turns into bogus and that the bazooka in corporate taxation does not becomes simply harmless water pistol. So: Get started now and work with us to carry through the loss carry-back!
Thank you very much.
(Applause from the CDU / CSU)
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.