Schlagwörter: Two-Tier Partnerships (3 gefunden)

1. 18. Juli 2025

   Trade tax attribution of profit from the sale of shares in t ...

   The profit from the sale of a share in the upper-tier partnership as prescribed in Section 7 sentence 2 no. 2 Trade Tax Act is not to be allocated to the hidden reserves of the upper-tier partnership and the hidden reserves of the lower-tier partnership. It is rather a single and uniform sales transaction at the level of the upper-tier partnership, the Supreme Tax Court said in a most recently published decision.

   Kategorien: Supreme Tax Court cases

   Schlagwörter: hidden reserves, Two-Tier Partnerships
2. 16. März 2017

   Interest paid by foreign partner deductible also in case of ...

   In a decision published in March 2017 the Supreme Tax Court held that - in the case of a two-tier partnership structure – the interest expense of the Dutch partner holding only an indirect share in a German limited partnership is nevertheless tax deductible when computing his limited German tax liability resulting from his investment in the German partnership.

   Kategorien: Supreme Tax Court cases

   Schlagwörter: limited partnership, Two-Tier Partnershi ...
3. 26. August 2016

   No trade tax loss carry-forward with merger of two-tier part ...

   In its decision of 12 May 2016 the Supreme Tax Court held that -in the case of a two-tier partnership structure- the trade tax loss carry-forward of the lower-tier partnership is fully eliminated, if the upper-tier partnership, which holds a 100% -interest in the income and assets of the lower-tier partnership, is merged down-stream and thus ceases to exist. Referring to previous case law, the Court’s reasoning was that the upper-tier partnership, as co-entrepreneur of the lower-tier partnership, was also the holder of the partnership’s trade tax loss-relief.

   Kategorien: Supreme Tax Court cases

   Schlagwörter: downstream merger, trade tax, Two-Tier P ...