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Court: winning Big Brother is taxable work

Watching the Big Brother television “reality” series may feel like a chore – now a German court has ruled that being in it is work not play, and that the winner must pay tax on his prize money.

Court: winning Big Brother is taxable work
Sirtl, the winner who challenged the tax office. Photo: DPA

Wednesday’s verdict is likely to apply to other shows such as Heidi Klum’s Germany’s Next Topmodel and the various casting competitions.

The Federal Tax Court in Munich told Big Brother 2005 winner Sascha Sirtl that he would have to pay income tax on his €1 million prize money, rejecting his appeal against his regional tax office.

Taking part in the Big Brother show was taxable because, “The complainant owes – like all other candidates – his constant presence in the Big Brother house to the organiser,” the court said.

It added that, “he had to allow himself to be filmed and listened to during his presence there, and after being selected, had to take part in competitions with other candidates.”

This could not be ranked as a game or a bet – making his winnings taxable, unlike the prizes from quiz shows such as “Who wants to be a Millionaire”.

Sirtl’s lawyer Burkhard Binnewies said that the duration of participation seemed to have been key in prompting the question, when does a game become so professional that it becomes work?

“This will change the whole sector,” he said, suggesting that the winners of shows such as “Germany’s Next Topmodel”, “The Supertalent” and “Germany seeks a Superstar” would also have to pay tax in the future.

DPA/The Local

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TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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