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Positive Judgment For Co-Entrepreneurs In Partnerships


The annual profit of a partner is not pro rata to the parental allowance counted if the parent has waived it according to the articles of association.

The Federal Social Court spoke to a co-entrepreneur in a civil society Right (tax consultant) with judgment of 13.12.2018 (Az. B 10 EC 5/17 R) an elevated Parental allowance too. She had run a tax office together with her brother. Both had stipulated in the articles of association that a parental leave was not professional Co-entrepreneur should receive no profit share.

When this case occurred, the accountant did not make withdrawals from her Shareholder account, nor was it the profit of GbR for the period of Parental benefits involved. The parental allowance granted her still only Minimum parental allowance of 300 euros per month .

Wrong, as the judges of the Federal Social Court found. A recourse to the Tax assessment and an attribution of fictitious income see the law after the Parental law amendment of 10 September 2012 (Law on the simplification of the parental allowance enforcement, BGBl 2012 Part I No. 42) not (any longer) ago. It was overlooking the Legislative revision adapted the previous case law according to which the Annual profit of a shareholder also then pro rata as income in the reference period was to be counted, if the partner waived his profit during the parental leave would have.

Parents affected by the unfavorable scheme and possibly only the minimum amount is advised to rely on the current judgment to their parental benefit agency to turn.

Co-entrepreneurs, who still have to apply for parental allowance, will still be admitted advised in detail, since the bureaucratic hurdles for the correct Application are still comparatively high.

Did you know that we have been successfully advising parents on parental benefits for years?

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