Legal costs for military disciplinary proceedings: income-related expenses
Oct 30, 2025
According to a ruling by the Federal Fiscal Court (BFH) dated 10 January 2024, legal costs incurred by a professional soldier in connection with military disciplinary proceedings brought against him can be deducted as income-related expenses from income from employment. 2024, the legal costs incurred by a professional soldier in disciplinary proceedings brought against him may be deductible as income-related expenses from income from employment if the loss of income due to removal from service or a reduction in income is a possible disciplinary measure (VI R 16/21).
With this decision, the Federal Fiscal Court (BFH) confirmed the ruling of the Cologne Fiscal Court (FG) of 17 June 2021 (14 K 997/20). However, the BFH also clarified that legal costs incurred in the context of professional disciplinary proceedings are not comparable to legal costs incurred in criminal proceedings. According to the case law of the BFH, these are not deductible as income-related expenses if the violation or the allegation of violation did not occur in the course of professional activity, but only in connection with the exercise of the profession.
This means, for example, that an allegation of bodily harm against a police officer during the break-up of a brawl to which the police officer is called in the course of his duty is made in the course of his professional activity, whereas the same allegation, if it took place in the coffee kitchen of the police station between two police officers, would be classified as merely arising in connection with the professional activity.
In principle, legal costs relating to private matters, e.g. the existence of inheritance rights, are never deductible as income-related expenses. If, on the other hand, they relate to professional matters, e.g. a dispute over the existence of an employment relationship, they are classified as income-related expenses. Ultimately, it is the court that makes these findings of fact relevant to the decision.