01. Dezember 2021 Dividend exemption under double tax treaty or abuse of legal ... The distribution of profits by a Luxembourg subsidiary (in the legal form of a SARL) to its German parent company (a partnership limited by shares – KGaA) may be an abuse of legal forms where the KGaA provided SARL with a loan and shortly thereafter waived repayment, thereby putting SARL in a position to actually make the profit distribution. Even more when the losses arising from the impairment of the value of SARL because of the distribution are to be used by the shareholders in a tax-effective manner. Kategorien: Tax CourtSchlagwörter: dividend exemption, abuse of legal forms ...
08. Juni 2021 Abuse of legal forms in the case of merger According to the decision of the Supreme Tax Court the offset of losses in case of an upstream merger with the profits of the transferring company accrued during the period of retrospective application was not abusive and in accordance with the legal (tax) provisions in force in the year of dispute (2008). Kategorien: Supreme Tax Court casesSchlagwörter: Upstream merger, abuse, loss utilization ...
01. September 2021 Sale of property after gratuitous transfer to children no ab ... If the taxpayer has arranged for the sale of a property to a third party, there is generally no abuse of tax law (abuse of legal forms) if the property was initially transferred to the children free of charge and subsequently sold by the children to the ultimate buyer. According to the decision of the Supreme Tax Court the capital gain is subject to income tax in the hands of the children based on their individual income tax situation. Kategorien: Supreme Tax Court casesSchlagwörter: Capital gains taxation, abuse, gratuitou ...
02. März 2011 Ring transfer of shares to realise losses not abusive The Supreme Tax Court has held that a concerted sales action by shareholders among themselves to realise losses was not abusive despite unchanged holding ratios. Kategorien: Supreme Tax Court casesSchlagwörter: capital gain, abuse, ring share transfer ...
19. Juli 2016 No deduction of foreign withholding tax in case of abuse Dividend withholding tax paid by a foreign intermediary company may not be deducted from the taxable income of the local shareholder of a German company if the entire arrangement is abusive and if, therefore, the dividend income is to be allocated to the German shareholder. Kategorien: Supreme Tax Court casesSchlagwörter: abuse, foreign tax relief, deduction of ...
