Non-deductible deemed business expenses not to be derived fr ...
If a corporation is merged into its parent company, which in turn is a controlled company within a corporation tax group (fiscal unity/“Organschaft”) with a corporation as the controlling company (“Organträger”), the Supreme Tax Court has ruled that no flat-rate deemed business expenses are to be added back to profits under Section 8b (3) sentence 1 of the German Corporation Tax Act (CTA) either at the level of the parent company or at the level of the controlled company, where the said non-deductible flat-rate deemed business expenses are derived from a merger gain. ... company of the indirect tax group), i.e. the dispute was not about the assessment of a capital gain,
Kategorien: Supreme Tax Court cases
Schlagwörter: Upstream merger, merger profit, corporat ...
