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German Government to Refund Tax on Indemnification Payments

Income taxes collected by the German treasury from indemnification payments awarded for economic injuries inflicted upon a Nazi victim will now be refunded, it was announced here by the Federal Minister of Finance.

Refunds must be applied for by the individual taxpayer and will not be made automatically. If taxes were deducted from indemnification awards consisting of back pay, pensions ###d the like, no reimbursement is authorized. The Ministry of Finance announcement, which was long urged by the Central Council of Jews in Germany, gives retroactive effect to the principle that awards under the Federal Indemnification Law should be tax-exempt.