Tax & Legal

In a recent judgment, the Supreme Tax Court decided that the transfer of GmbH shares as part of the principle of equalization of accrued gains between spouses (Zugewinnausgeich) generally constitutes a taxable sale. However, retroactive elimination of the respective capital gain is possible if the transfer is reversed due to an error on the subsequent tax consequences.

The Supreme Tax Court has held that a memorandum of understanding prior to a legal change does not bind a taxpayer sufficiently to allow him to claim protection from retroactive legislation.