Tax & Legal

The Supreme Tax Court decided that so-called “consolidation gain” from the settlement of liabilities and receivables following a universal transfer of assets from a French Société à Responsabilité Limitée (SARL) to its sole shareholder GmbH cannot be neutralized off-balance-sheet in analogy to Section 8b (3) Sentence 8 of the Corporation Tax Act.

The Supreme Tax Court has held that the capital gain on the sale of a foreign investment is the difference between the amount paid in euros and the amount received in euros.