Dividend withholding tax paid by a foreign intermediary company may not be deducted from the taxable income of the local shareholder of a German company if the entire arrangement is abusive and if, therefore, the dividend income is to be allocated to the German shareholder.
Tax & Legal
The new German Inheritance and Gift Tax Act which was presented by the German government in June 2016 in order to meet the standards set by the German Constitutional Court is delayed: The representatives of the German provinces (Bundesrat) did not accept the package.
In this issue: Supreme Tax Court Cases, From Europe and From PwC
In two cases the Supreme Tax Court has asked the ECJ to rule on the invoice requirements which allow the deduction of input VAT. Against the background of an earlier ECJ judgment in a Polish case the Supreme Tax Court has expressed doubts whether his previous case law can still be upheld, whereby the address of the supplier shown in the invoice should also be the place from which he pursues his business activities.
The EU Commission has published guidance when or whether public spending falls within, and outside, the scope of EU State aid control. This guidance will help public authorities and companies to identify when public support measures can be granted without needing approval under EU State aid rules.
Services in connection with hotel accommodation are subject to the reduced VAT rate, this also applies to ancillary services – inasmuch as they immediately contribute to the letting of rooms.
The ECJ has held that the German inheritance tax privilege relieving repeated transfers within the same family need not be extended to previous transfers taxable in another member state.
Brexit: The United Kingdom of England, Wales, Scotland and Northern Ireland is leaving the European Union: A first analysis of the potential tax implications.
First Draft Issued: The Federal Ministry of Finance has published a package of measures designed to combat base erosion and profit shifting
The Supreme Tax Court has held that a parent company cannot be deemed to have earned income from allowing its Polish subsidiary to register locally in the group name.