Tax & Legal

Categories: All (3 found)

1. 16.07.2024

   Accrual and taxation of unpaid bonus for shareholding managi ...

   A management bonus for the majority shareholder and managing director of a limited liability company (GmbH) which is not recorded as a liability in the certified annual financial statements is not immediately subject to income tax, even if it is mandatory under generally accepted accounting principles to record a liability to this effect in the (certified) financial accounts.

   Categories: Supreme Tax Court cases

   Keywords: management agreement, bonus share
2. 15.02.2023

   Supreme Tax Court: Full trade tax add-back of remuneration f ...

   The remuneration paid to managing directors for the management of a partnership limited by shares (KGaA) must be added back for trade tax purposes even where the KGaA concluded an employment contract directly with the managing directors who each are limited partners of a limited partnership (GmbH & Co. KG), which itself is the general partner of KGaA (the plaintiff). According to the Supreme Tax Court, such "third-party employment" does not reduce the amount of add-back when determining the KGaA's trading income if the KG is entitled to a corresponding claim for compensation by its articles of association.

   Categories: Supreme Tax Court cases

   Keywords: management agreement, trade tax addback
3. 09.01.2011

   Active business can be contracted out

   The Supreme Tax Court has held that a Dublin docks reinsurance company that subcontracted its operation under a management agreement was an active business within the meaning of the Foreign Tax Act.

   Categories: Supreme Tax Court cases

   Keywords: Active business, contracted out, CFC pro ...