The Supreme Tax Court has rejected a tax office income adjustment cancelling a write-down of an unsecured loan to a foreign subsidiary as the lack of security was, in the view of the tax office, not at arm’s length.
Tax & Legal
The ECJ has held that a non-resident taxpayer must be able to deduct an annuity paid in consideration for a business interest on the same lines as a resident.
The finance ministry has published a list of documents to be produced by unit holders in “non-transparent” investment funds if they wish to avoid taxation on punitive deemed income.
The Supreme Tax Court has rejected a tax office attempt to requalify a repayment of share capital as a dividend merely because the repayment was not specified precisely in the capital reduction Resolution.
The Supreme Tax Court has held that a dividend payable by a solvent subsidiary to its shareholder with a controlling interest is generally taxable income for the latter on the date of the resolution regardless of a resolution for a later date of payment.
The Supreme Tax Court has held that a business of uncertain residence that has invoiced its German sales with VAT must recover its input tax through the return that must be filed, regardless of whether the VAT invoices were rightly or wrongly issued.
An ECJ advocate general has suggested the court hold the provision of a warranty by an independent business for certain components and assemblies within used cars sold by a dealer is an insurance, the premium for which should be taxed as such.
The ECJ has held that UK group relief provisions that restrict losses incurred by foreign subsidiaries to those that cannot be offset in the same or a previous year in the foreign country or – as apparent immediately after year-end – in a future year are not in breach of community law.
The European Council (ECOFIN) has adopted an amendment to the Parent/Subsidiary Directive to exclude arrangements entered into without a business reason other than to obtain a tax advantage from its benefits.
In this issue: PwC Reports, Official Pronouncments, Supreme Tax Court Cases, From Europe and From PwC – The topics of this issue also include a summary of the tax amendments 2015 and the ruling of the Constitutional Court on the Inheritance Tax Act as being in part unconstitutional