If a majority shareholder and the company decide that the interest maturity date from a loan granted to the company should be extended, the interest does not immediately accrue to the shareholder if the amendment was concluded prior to the original interest due date. According to the Supreme Tax Court, this applies irrespective of whether the terms and circumstances of the prolongation are customary and in line with arm's length principles.
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.
