The finance ministry has drafted a decree setting forth the administrative and other regulations to be followed by banks in fulfilment of their US FATCA obligations.
Tax & Legal
The ECJ has held that a non-resident employee need not be granted the privileges of a resident in the year he moves to take up employment in another country.
The Supreme Tax Court has held that the pre-2008 disallowance of loan interest on related-party finance for the purchase of shares refers to direct investments only.
The Supreme Tax Court has held that a lawyer did not earn taxable income through misappropriation of funds held on behalf of clients.
An ECJ advocate general has suggested the court hold that the 5% effectively connected expense add-back for foreign dividends infringes a company’s freedom of establishment if an otherwise comparable domestic company could avoid the add-back by joining a tax group.
The ECJ has held that if a country excludes capital gains and losses on investments from taxation, the exclusion may also extend to that part of the loss that directly resulted from exchange rate fluctuations.
Despite apparently favourable ECJ judgments, the Supreme Tax Court has once again refused a taxpayer credit for the foreign corporation tax due on a dividend received during the currency of the old, imputation tax System.
The ECJ has held that German nuclear fuel duty levied on the use of nuclear fuel in a reactor does not conflict with community law.
In this issue: PwC Reports, Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC
The finance ministry has announced that it considers negative interest charged by banks on deposits as a non-deductible expense and interest paid by banks on refunds of loan handling fees as income subject to withholding tax.