Tax & Legal News – Issue 3, June 2015

In this issue: PwC Reports, Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC

PwC Reports

• Constitutional Court refuses case against double charge to income and inheritance tax on interest claims

Official Pronouncements

• LIFO – open questions clarified
• Bank interest
• VAT invoiced in error can be settled with that on main supply
• Land – taxable value notifications provisional

Supreme Tax Court Cases

• No foreign passive income attribution for trade tax
• Minimum taxation not a reason for provisional assessment
• Hedging gain not taxable with main transaction
• Capital gain holding period runs to date of binding agreement to sell
• EEA donations must be supported
• No spread of tax-free employee share benefit over all employees
• Internet trade in pharmaceuticals: no deduction for payments to health fund customers
• Mail order attempt to avoid VAT fails

From Europe

• Roll-over relief provision infringes EU freedom of establishment
• 10-year tax deferral on gain on transfer of assets to other member state not disproportionate
• Estimated taxation on deemed income from non-transparent third country investment funds upheld
• Continued German tax liability under DTT does not conflict with Swiss free movement agreement?
• Partnerships to be eligible for VAT groups?

From PwC

• Guide to Doing Business and Investing in Germany

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