The Supreme Tax Court has held that an income adjustment for the interest lost on an interest-free loan to a foreign subsidiary can be made under the Foreign Tax Act unless the loan was granted as a substitute for share capital.
Tax & Legal
An ECJ advocate general has suggested the court hold for a second time that Germany must allow a non-resident a deduction on the same terms as a resident for a pension paid to his father in consideration of his early assumption of joint ownership in the family business.
The Supreme Tax Court has held that a smoke extraction assembly is an installation in a building, rather than part of a building, and thus subject to mainstream VAT.
Update ZollkodexAnpG: Bundesrat select committees ask for changes
The Supreme Tax Court has held that the merger loss of a life assurance company is deductible insofar as it arose from an excessive book value of the shares in the acquired company.
The Supreme Tax Court has held that minicabs cannot claim the same reduced rate of VAT as taxis, except for ambulance services under a common contract with a health fund.
The finance ministry has distinguished between returnable containers sold with the content and subject to the same rate of VAT and transport packaging within the trade and subject to standard rate VAT.
The Supreme Tax Court has held that the treaty override provision making tax exemption of foreign income dependent on tax compliance in the other state is, unless mirrored in the treaty, in breach of international law and therefore unconstitutional. It has referred to the Constitutional Court for a ruling.
The Supreme Tax Court has held that a taxpayer cannot claim forgiveness of the interest due on the tax payment following a transfer pricing adjustment on the grounds that an associated company had no claim for interest receivable on the corresponding adjustment in its home country.
The ECJ has rejected the estimated taxation of “non-transparent” investment funds as excessive taxation hindering the freedom of capital movement on shares held in foreign investment funds that do not report und publish their results in Germany in accordance with German law.