Tax & Legal

In its decision today the European Court of Justice (ECJ) held that a Member State (here: Germany) may prohibit holdings by purely financial investors in the capital of a law firm. Such a restriction on the freedom of establishment and the free movement of capital is justified by the objective of ensuring that lawyers can exercise their profession independently and in compliance with their professional conduct obligations.

The Supreme Tax Court has held that the German partners in a US LLP law firm should tax their partnership earnings in the country where they carried out their practice.