An ECJ advocate general has suggested the court hold that the German insistence on tax consultancy businesses being led by individuals with German professional qualifications to be excessive in view of the legitimate interests of the state and of clients in the availability of accurate and appropriate professional advice.
Tax & Legal
The Supreme Tax Court has held that compensation for loss of office is taxable in the state of residence under the German/Swiss tax treaty and not in the state of employment. A mutual agreement between the two revenue authorities to the contrary is not to be applied for lack of an adequate legal basis.
In this issue: Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC.
The finance ministry has decreed that an employer may upgrade an employee’s car insurance to comprehensive cover for business travel without tax consequences for the individual.
The Supreme Tax Court has held that a write-off of an irrecoverable related-party loan is not subject to income adjustment under the arm’s length rules, although the interest rate should reflect the bad debt risk.
An ECJ advocate general has suggested that neither the German refusal to allow a deduction for branch losses incurred in other member states, nor the recapture provision in the event of disposal of the branch offend against community law.
The ECJ has held that provisions allowing full expense deduction within tax groups must be applied to otherwise eligible foreign subsidiaries.
The finance ministry has added a passage on asset leasing to its VAT Implementation Decree to the effect that entry by the leasing company into the transaction before delivery of the asset to the customer renders the lessor the purchaser, whereas entry afterwards qualifies the leasing transaction as VAT-free finance.
The Supreme Tax Court has held that commodity warrants are not financial investments; thus gains on their sale or redemption are not taxable as investment income.
The finance ministry has decreed that a company with an untypical silent partner cannot be a member of a corporation tax group.