27. Oktober 2011 Declining rate loan interest to be spread over term of the l ... The Supreme Tax Court has held that declining rate interest on a loan should be taken to prepaid expense and then written off in equal portions over the term of the loan, unless the borrower had an early repayment facility without a claim for partial refund of the higher interest paid. Kategorien: Supreme Tax Court casesSchlagwörter: early repayment, declining rate, step do ...
26. November 2014 Income adjustment for interest-free loan to foreign subsidia ... The Supreme Tax Court has held that an income adjustment for the interest lost on an interest-free loan to a foreign subsidiary can be made under the Foreign Tax Act unless the loan was granted as a substitute for share capital. Kategorien: Supreme Tax Court casesSchlagwörter: Foreign Tax Act, income adjustment, inte ...
05. Juli 2012 Full income tax deduction for shareholder loan write-off The Supreme Tax Court has held that the write-off of a shareholder loan held as a business asset is fully deductible by the income taxpaying holder even if the loan is to be seen as a substitute for share capital Kategorien: Supreme Tax Court casesSchlagwörter: shareholder loan, write-off
04. Januar 2011 Profit-sharing loan not necessarily dependent on annual surp ... The Supreme Tax Court has held that a profit-sharing loan can be dependent on an overall, as opposed to an annual, surplus. Kategorien: Supreme Tax Court casesSchlagwörter: fixed-interest, profit sharing loan
05. April 2016 Loan and accumulated interest separate debts The Supreme Tax Court has held that a refusal to recognise a related party loan write-off, does not preclude the tax office from treating the write-off of the accumulated interest as a further hidden distribution. Kategorien: Supreme Tax Court casesSchlagwörter: write-off, accumulated interest, debt
17. Juni 2015 Pre-2008 disallowance of related-party loan interest The Supreme Tax Court has held that the pre-2008 disallowance of loan interest on related-party finance for the purchase of shares refers to direct investments only. Kategorien: Supreme Tax Court casesSchlagwörter: loan interest, related party finance, th ...
03. Januar 2013 No write-down of interest-free loan asset The Supreme Tax Court has refused a company a write-down to current market value of an interest-free long-term loan asset on the grounds that ultimate repayment was not in doubt and that the value impairment was therefore only temporary. Kategorien: Supreme Tax Court casesSchlagwörter: loan, interest-free, value impairment
07. September 2011 Handling fee on subsidised loan immediate expense if not ref ... The Supreme Tax Court has held that a handling fee charged on the grant of a publicly subsidised loan should be taken to immediate expense if not partially refundable on earlier loan repayment, or where earlier repayment is confined to instances of contract cancellation for good cause. Kategorien: Supreme Tax Court casesSchlagwörter: early repayment, handling fee, subsidise ...
26. Februar 2015 No refusal of related-party loan write-down for lack of secu ... The Supreme Tax Court has rejected a tax office income adjustment cancelling a write-down of an unsecured loan to a foreign subsidiary as the lack of security was, in the view of the tax office, not at arm’s length. Kategorien: Supreme Tax Court casesSchlagwörter: write-down, foreign subsidiary, unsecure ...
09. September 2015 Arm’s length related-party loan interest to include risk upl ... The Supreme Tax Court has held that a write-off of an irrecoverable related-party loan is not subject to income adjustment under the arm’s length rules, although the interest rate should reflect the bad debt risk. Kategorien: Supreme Tax Court casesSchlagwörter: bad debt, related-party loan, arm's leng ...
31. Oktober 2013 Foreign partner receives business income from the interest o ... The Supreme Tax Court has held that a foreign limited partner must accept attribution of the shares in a British distributor company held by the partners to the partnership. In consequence, the interest on a shareholder loan falls to the partnership, where it is requalified as trading income. The interest clause in the double tax treaty with the partner’s home country is inapplicable. Kategorien: Supreme Tax Court casesSchlagwörter: shareholder loan, partner, interest inco ...
05. August 2015 Film pre-release marketing subsidy as profit-sharing loan The Supreme Tax Court has defined a pre-release marketing subsidy paid by a film owner as a profit-sharing loan in view of the net proceeds-based licence fee payable by the distributor at the end of the fixed-term distributorship. Kategorien: Supreme Tax Court casesSchlagwörter: marketing subsidy, pre-release, film
01. Juli 2022 Income adjustment pursuant to Section 1 (1) FTA vis-à-vis a ... Following a referral from the Federal Constitutional Court, the Supreme Tax Court has again had to rule on the income adjustment pursuant to Section 1 (1) Foreign Taxes Act vis-à-vis the write-down of an unsecured loan receivable issued within a group Kategorien: Supreme Tax Court cases, Constitutional ...Schlagwörter: income adjustment, International Tax, un ...
31. August 2011 Foreign tax credit on hedged loan interest takes hedge costs ... The Supreme Tax Court has held that the hedge costs on a foreign currency loan are to be deducted from the interest received in calculating the net foreign income as the basis for the foreign tax credit available. Kategorien: Supreme Tax Court casesSchlagwörter: loan interest, interest, foreign currenc ...
04. September 2012 Factoring is not a loan The Supreme Tax Court has held that charges for factoring are fully subject to standard rate VAT as a service, even if an interest element is shown separately on the invoice. Kategorien: Supreme Tax Court casesSchlagwörter: Factoring, interest, loan
24. Oktober 2021 Supreme Tax Court rules on arm’s length interest on intercom ... In a most recent judgment, the Supreme Tax Court decided on the transfer pricing method to determine an arm's length interest on intercompany loans. In its decision the highest tax court also provides some guidelines on the parameters to be observed from a purely tax point of view. Also, the court takes time to compare the adequacy of the various standard methods under review. Kategorien: Supreme Tax Court cases, Transfer pricin ...Schlagwörter: arm's length, intercompany loan, compara ...
26. Februar 2021 Swedish interest deduction rule incompatible with EU law In a recent judgement the European Court of Justice (ECJ) has clarified that it is contrary to the freedom of establishment to deny the deduction of interest costs on a loan from a normally taxed group company, if this would not have happened had the loan been granted from a normally taxed Swedish group company instead. Kategorien: European Court of JusticeSchlagwörter: interest deduction, cross-border loan
08. März 2011 US profit sharing loan interest to be taxed in Germany The finance ministry has announced that application of a Supreme Tax Court judgment exempting US profit-based interest from German taxis to be seen against the treaty override provision of 2006. Kategorien: Official PronouncementsSchlagwörter: treaty override, profit sharing loan
16. November 2016 Schematic loan and return of securities The Finance Ministry has decreed on a Supreme Tax Court judgment regarding securities lending schemes and provides some guidance as to when a transfer of economic ownership of the securities takes place. Kategorien: Official PronouncementsSchlagwörter: economic owner, beneficial owner, securi ...
08. März 2016 VAT on lease concluded after delivery of asset to customer The finance ministry has changed its VAT Implementation Decree to the effect that a lease concluded after delivery of the asset to the customer is either a sale and lease-back transaction or the grant of a loan. Kategorien: Official PronouncementsSchlagwörter: lease, sale and lease-back
