In a recent decision, the Supreme Tax Court established legal certainty for parents who, as part of an anticipated succession plan, agree with their children during their lifetime on a waiver of the statutory share of the inheritance in exchange for a lump-sum payment. The judges at the highest tax court made it clear that such lump-sum payments, even if paid in installments, are not subject to tax as capital investment income or other income.
Serious doubts as to whether a distribution of an estate will lead to a change in the shareholder structure of at least 90% of the shares in a property-owning limited liability company within the meaning of Section 1(2b) of the Real Estate Transfer Tax Act (RETTA)
The ECJ has held that a non-resident taxpayer must be able to deduct an annuity paid in consideration for a business interest on the same lines as a resident.
An ECJ advocate general has suggested the court hold for a second time that Germany must allow a non-resident a deduction on the same terms as a resident for a pension paid to his father in consideration of his early assumption of joint ownership in the family business.
