In a most recently published decision, the Supreme Tax Court held that a group of natural persons who are not organized in the legal form of a partnership or another corporation or a community of heirs is not considered as a legal entity under civil law and real estate transfer tax law and cannot therefore be a controlling company within the meaning of Section 6a Sentence 3 Real Estate Transfer Tax Act which governs the tax exemption for group restructurings in cases of the unification of shares.
The ECJ has held that UK group relief provisions that restrict losses incurred by foreign subsidiaries to those that cannot be offset in the same or a previous year in the foreign country or – as apparent immediately after year-end – in a future year are not in breach of community law.
