Schlagwörter: loan interest (5 gefunden)

1. 18. Dezember 2023

   Excess drawings in a two-tier partnership structure

   In a decision published on 14 December 2023 on Section 4 (4a) of the German Income Tax Act (restriction of deductible interest expense in the case of excess drawings), the Supreme Tax Court decided that the rule whereby Section 4 (4a) Income Tax Act (ITA) is to be applied for each business in isolation – a so-called business-related application - also applies to multi-level partnership structures. As a result, the transfer of a rolled-over profit in accordance with Section 6b ITA (roll-over relief) to another legal entity does not lead to a contribution to the transferring legal entity - (i.e. a contribution which would reduce the level of excess drawings) - due to the fact that no contributable asset was involved.

   Kategorien: Supreme Tax Court cases

   Schlagwörter: non-deductible expenses, loan interest, ...
2. 18. Januar 2023

   Update: EU Commission proposal to reduce the imbalance in th ...

   On 11 May 2022, the European Commission published a draft Directive which is intended to mitigate the tax induced debt-equity bias in corporate investment decisions. Technically, this is to be achieved through, on the one hand, an allowance that provides for the deductibility of notional interest on equity and, on the other, by introducing further restrictions on the deductibility of interest on debt.

   Kategorien: From Europe

   Schlagwörter: loan interest, interest limitation, debt ...
3. 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 cases

   Schlagwörter: loan interest, related party finance, th ...
4. 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 cases

   Schlagwörter: loan interest, interest, foreign currenc ...
5. 05. Januar 2011

   Loan interest subject to profits is profit sharing under Aus ...

   The Supreme Tax Court has held that payment of interest only if the payer remains profitable means that the payment is profit sharing and subject to withholding tax under the Austrian treaty.

   Kategorien: Supreme Tax Court cases

   Schlagwörter: loan interest, Profit-sharing interest, ...