More than 70 operators of private and corporate aircraft represented by HSP Law are pursuing fuel tax rebates ranging from Euro 30,000 to Euro 1 million per year through the German courts. The individual actions follow a legal battle by the German branch of the international law firm HSP Law which established that Germany broke EU law when it charged corporations and private owners the tax of Euro 0.65 per litre of fuel.

The HSP branch, headed by Dr Heinz Schaefer, conducted the challenge to the tax application through its specialist attorney-at-law Andre Duewel. The German Business Aviation Association (GBAA) says that the "remarkable lawsuit" gained a ruling that companies using an aircraft for non-AOC charter have the right to reclaim any previously paid fuel tax. "In the future they will be able to enjoy tax free refuelling on production of a certificate to demonstrate non-AOC commercial usage. As this can represent significant sums of money, we would recommend that our members who operate such flights check immediately if this redress is applicable to them."

Duewel explains that private charter companies operating on an AOC have been able to reclaim the fuel tax. But corporate fleets and private owners were among those who were not exempted from the tax and were precluded from claiming refunds. "It is important for companies to establish correct procedures to ensure exemption," Duewel says. "Those operating a corporate fleet for business purposes should be able to demonstrate that they are buying the fuel themselves. If a company has established a subsidiary to operate its corporate fleet it is advisable to dry lease the aircraft to the parent company which buys the fuel on its own account. As well as pursuing cases through the highest courts in Germany we are advising on correct and clear and transparent structures."

He says one of the companies claiming a sizeable refund operated a Falcon 200 which was used to fly its employees and board on business. "Private owners can also reclaim the tax on fuel bought for business purposes," he adds. Duewel predicts that completion of the individual legal actions through the German courts will take another two or three years.

Hans Pfeiffer, gm, says Triple Alpha Luftfahrt GmbH manages a TBM700 for an owner which is sometimes used as an AOG aircraft to fly parts, mechanics or other personnel. "This aircraft is certainly affected by the development but our other aircraft are on the AOC and therefore not affected," he adds.