Tax & Legal

Categories: All (4 found)

1. 30.08.2024

   Foreign currency losses in the case of shareholder loans to ...

   In a most recent decision, the Supreme Tax Court held that foreign currency losses on shareholder receivables similar to loans do not reduce the taxable income of the corporation. This was decided by the Supreme Tax Court in its interpretation of Section 8b (3) Corporation Tax Act as valid in 2014 and which deals with investments in other corporations and the non-deductibility of losses in connection with certain shareholder loans.

   Categories: Supreme Tax Court cases

   Keywords: Loss relief, shareholder loan
2. 18.08.2023

   No flat rate taxation in case of shareholder debt financing ...

   The Supreme Tax Court decided that interest from loans made by a taxpayer to a foreign corporation in which he indirectly holds an interest of at least 10% is subject to the regular progressive scale rate income tax rather than to the (lower) flat rate of 25%. This applies for all tax years prior to the introduction of the Finance Bill 2020.

   Categories: Supreme Tax Court cases

   Keywords: shareholder loan, flat rate
3. 31.10.2013

   Foreign partner receives business income from the interest o ...

   The Supreme Tax Court has held that a foreign limited partner must accept attribution of the shares in a British distributor company held by the partners to the partnership. In consequence, the interest on a shareholder loan falls to the partnership, where it is requalified as trading income. The interest clause in the double tax treaty with the partner’s home country is inapplicable.

   Categories: Supreme Tax Court cases

   Keywords: shareholder loan, partner, interest inco ...
4. 05.07.2012

   Full income tax deduction for shareholder loan write-off

   The Supreme Tax Court has held that the write-off of a shareholder loan held as a business asset is fully deductible by the income taxpaying holder even if the loan is to be seen as a substitute for share capital

   Categories: Supreme Tax Court cases

   Keywords: shareholder loan, write-off