16.09.2024 Saved expenses deemed to be hidden profit distribution The Supreme Tax Court decided that a hidden profit distribution may be assumed if the shareholder saves own expenses. Such cost savings can also be the result of a waiver of an agreement for reimbursement or compensation claims. The tax court of first instance must now determine whether the economic embargo in the customer's home country and the ensuing compensation payments had legal consequences for the GmbH or whether the breach of contract was solely made at the instruction of the parent company. Categories: Supreme Tax Court casesKeywords: hidden distributions
03.09.2024 Simultaneous payment of managing director's salary and regul ... The Federal Ministry of Finance has published a circular with comments on the consequences of a Supreme Tax Court decision from 2023 on hidden distributions and has in one part adjusted its earlier circular from 2017 regarding the tax accounting of pension commitments. Categories: Official PronouncementsKeywords: pensions, hidden distributions
20.12.2022 Tax treatment of incongruent advance distributions A civil law resolution for a selective incongruent advance distribution to only one of two shareholders contravening the articles of association but passed unanimously by the shareholders' meeting is also tax effective. Thus, the “left-out” shareholder does not realize taxable income by way of a hidden distribution. Categories: Supreme Tax Court casesKeywords: hidden distributions, incongruent advanc ...
24.02.2016 Bonus dividend points for co-operative bank members are hidd ... The Supreme Tax Court has held the cost of bonus dividend points of members of a co-operative bank to be a hidden distribution when the programme is open to members only and the maximum bonus is capped. Categories: Supreme Tax Court casesKeywords: hidden distributions, co-operative
26.03.2014 Pension promises to owner/managers of companies The Supreme Tax Court has handed down four judgments on pension promises to managing directors who are also majority shareholders specifying rules for distinguishing allowable business expenses from disallowable “hidden distributions”. Categories: Supreme Tax Court casesKeywords: owner/manager, pension promises, hidden ...
02.10.2013 Hidden distribution from foreign company is investment incom ... The Supreme Tax Court has held that a benefit from a foreign company to a German shareholder is a hidden distribution taxable in Germany as investment income. Categories: Supreme Tax Court casesKeywords: investment income, hidden distributions
05.01.2011 Swiss double tax treaty excludes thin capital rule The Supreme Tax Court has held that the thin capital rules in force up to 2007 are in breach of the non-discrimination clause in the Swiss double tax treaty. Categories: Supreme Tax Court casesKeywords: Non-discrimination, thin capital rules, ...
05.01.2011 Withholding tax on investment income The finance ministry has issued a decree on a number of technical points in connection with the obligation of banks to withhold tax from the investment income of private individuals. Categories: Official PronouncementsKeywords: withholding tax, investment income, full ...
