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.
Tax & Legal
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.
The Supreme Tax Court has held that tax auditors may only evaluate taxpayer data in the taxpayer’s offices or in their own tax offices and must delete it once the assessments for the year in question are final.
The Supreme Tax Court has held that a treaty provision calling for double tax relief for aircrew by foreign tax credit as opposed to the exemption method for other professions does not offend against the equal rights provision of the constitution.
The Supreme Tax Court has followed its previous case law in holding that the provision calling for taxation of treaty-exempt income if the other state does not exercise its right to taxation can only be applied if permitted by the treaty.
The Supreme Tax Court has held that the required documentation in support of a tax-free intra-community supply cannot be substituted by other evidence.
In this issue: PwC Reports, Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC.