The ECJ has held that a German deferral of the tax on the gain on transfer of assets to another member state over a ten-year period is not a disproportionate measure to achieve a legitimate object.
Tax & Legal
The ECJ has held that a German provision for the taxation of deemed income from foreign investment funds outside the EU that do not comply with the German disclosure requirements falls under the “grandfather” clause of Art 64 of the TFEU allowing restrictions on the free movement of capital to and from third countries on December 31, 1993 to continue in force.
The finance ministries of the provinces have instructed all tax offices to issue notifications of land values provisionally pending a Constitutional Court decision.
The finance ministry has issued a decree clarifying the conditions under which a business may opt for an inventory valuation based on LIFO.
The Constitutional Court has rejected for lack of prospects for success a case claiming that the future income tax due from the heir on interest earned but not yet due on the date of death of the testator be deducted from the inheritance tax base as a charge on the estate.
The Supreme Tax Court has held that the foreign passive income attributed to a domestic parent is to be seen as stemming from a foreign business establishment and is therefore exempt from trade tax.
The Supreme Tax Court has held that donations to charities in other EEA countries must be supported by receipts and other documents. These documents need not necessarily be completely in conformity with the German forms, though they should demonstrate the substance.
An ECJ advocate general has suggested the court rule that there is no conflict between the discrimination prohibition of the EU/Swiss free movement agreement and the Swiss/German double tax treaty provision for the continued German taxation of German source income of a former resident.
The Supreme Tax Court has held that a mail order business purporting to import goods on behalf of its customers was in reality acting on its own account, with the consequence that the sales were subject to VAT as having been made in Germany.
The Supreme Tax Court has held that the gain from the early abandonment of a hedge is to be taxed as a separate item, rather than as part of the results of the main Transaction.