The Supreme Tax Court has held that the German partners in a US LLP law firm should tax their partnership earnings in the country where they carried out their practice.
Tax & Legal
In this issue: Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC
The finance ministry has decreed that custom books of photographs commemorating private occasions are to be taxed at the standard rate of VAT.
The ECJ has held that an obligation on a German bank to report assets held by German customers of its Austrian branch to the German tax authorities does not restrict the bank’s freedom to establish itself in Austria.
The Supreme Tax Court has confirmed its previous case law that the foreign exchange loss on the return of capital invested in a foreign partnership is part of the trading results attributable to that partnership. Hence, it is not deductible in Germany if the income is not taxable by treaty or statute.
An ECJ advocate general has suggested that a tax treaty can justify a hindrance on the free movement of capital from granting a tax credit privilege to recipients of a dividend from a third country but not to those with dividends from a member state.
The finance ministry has issued a decree to the effect that a capital repayment by a company from another EEA country will not be recognised as such unless the company makes a formal application for recognition.
An ECJ advocate general has suggested that an exempt intra-community supply should not be taxable merely because of a missing VAT registration No. where there is no suggestion of evasion and the other conditions for exemption are fulfilled.
The finance ministry has decreed that Supreme Tax Court judgments limiting the income adjustments under the Foreign Tax Act to questions of amount are not to be followed as precedents prohibiting adjustments by reason of the nature of the transaction under review.
The Supreme Tax Court has held that a refusal to recognise a related party loan write-off, does not preclude the tax office from treating the write-off of the accumulated interest as a further hidden distribution.