Tax arrears pension benefits
Due to an extended contractual pension equalization, I receive an extended equalization pension from Shell GmbH. Last year, I had to declare these payments for the first time in my tax return. There were back payments of approximately 10,000 euros for previous years (the process took 1.5 years), which were not taxed using the five-fifths rule. Upon inquiry with the tax office, it was revealed that Shell had declared the equalization pension as wages and the back payment as pension benefits. This meant that the five-fifths rule could not be applied.
My questions are:
1.) Are pension benefits treated differently for tax purposes than wages, and should Shell not declare the pension as pension benefits, and how is the back payment taxed?
2.) From the Shell benefits, the full health insurance contributions of 15.5% and social security contributions of 1.95% are deducted from me. Is this correct for pension benefits?
