Tax & Legal

Categories: All (14 found)

1. 28.11.2023

   Tax group and corporate reconstructions

   In case of merger of a corporation into a partnership during the year the Supreme Tax Court decided that the acquiring legal entity as the ("new") controlling company also fulfills the requirement of financial integration as a prerequisite for a tax group („Organschaft“) of the former controlling company even if the conversion is not made with retroactive effect from the beginning of the financial year.

   Categories: Supreme Tax Court cases

   Keywords: merger, tax group
2. 17.03.2023

   Retroactive effects of over-surrenders from periods prior to ...

   The Federal Constitutional Court held that the retroactive introduction of Sec. 14 (3) Corporation Tax Act concerning the treatment of over-surrenders arising from periods prior to the membership in an Organschaft (tax consolidation group) to be in part unconstitutional and thus invalid.

   Categories: Constitutional Court

   Keywords: Organschaft, tax group, tax consolidatio ...
3. 16.02.2023

   Tax consolidation group in case of insolvency

   The profit pooling agreement under the concept of a tax consolidation group (Organschaft) must be concluded for at least five years and be followed throughout its entire term. According to the decision of the Supreme Tax Court recognition of the Organschaft is to be denied with retroactive effect if preliminary annual financial statements of the controlled company can no longer be adjusted due to insolvency and if a different result would have been reported in the final annual financial statements if the accounting principles under commercial law had been applied correctly.

   Categories: Supreme Tax Court cases

   Keywords: profit pooling agreement, insolvency, ta ...
4. 25.06.2021

   Bundesrat approves the Act to Modernise Corporate Income Tax

   UPDATE: In its session on 25 June 2021, the Bundesrat gave its approval to the Act to Modernise Corporate Income Tax Law. The Bundesrat thus followed the recommendation of the Finance Committee. The law is should enter into force on 1 January 2022.

   Categories: Official Pronouncements

   Keywords: Corporation tax, tax group, Exchange rat ...
5. 30.11.2018

   Finance Act 2018

   On 8 November 2018, the Finance Bill 2018 was adopted by the German parliament and received the consent of the Bundesrat on 23 November 2018 in the form of “The Act for the Avoidance of VAT Losses on the Trading of Goods on the Internet and Amendments to other Tax Regulations”(hereafter “Finance Act 2018”).

   Categories: Legislation

   Keywords: Organschaft, VAT, tax group, Cum/cum tra ...
6. 10.11.2017

   Tax Consolidation Groups (“Organschaft”) for income tax purp ...

   According to a decision of the Supreme Tax Court published on 9 November 2017 a profit pooling agreement will not be recognised for tax purposes where the compensation agreement with the external shareholder contains both the right to a variable compensation payment calculated on the basis of the profits of the subsidiary/controlled company/"Organgesellschaft" (“subsidiary”) and a fixed amount.

   Categories: Supreme Tax Court cases

   Keywords: Organschaft, Corporation tax, compensati ...
7. 16.09.2015

   Tax & Legal News – Issue 5, September 2015

   In this issue: Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC.

   Categories: Tax & Legal News

   Keywords: foreign tax credit, tax group, commodity ...
8. 02.09.2015

   Full expense deduction for tax group members also for foreig ...

   The ECJ has held that provisions allowing full expense deduction within tax groups must be applied to otherwise eligible foreign subsidiaries.

   Categories: From Europe

   Keywords: tax group, foreign subsidiaries
9. 25.08.2015

   Non-typical silent partnership excludes company from Organsc ...

   The finance ministry has decreed that a company with an untypical silent partner cannot be a member of a corporation tax group.

   Categories: Official Pronouncements

   Keywords: Organschaft, tax group, silent partnersh ...
10. 11.06.2015

    5% non-deductible deemed expense for foreign dividends can i ...

    An ECJ advocate general has suggested the court hold that the 5% effectively connected expense add-back for foreign dividends infringes a company’s freedom of establishment if an otherwise comparable domestic company could avoid the add-back by joining a tax group.

    Categories: From Europe

    Keywords: foreign dividend, tax group, directly co ...
11. 12.06.2014

    Tax groups not broken by foreign parent or intermediate hold ...

    The ECJ has held that the Dutch legislation allowing members of a tax group to consolidate their results must include local sub-subsidiaries of non-resident intermediate parents as well as associated companies held by a common parent in another member state.

    Categories: From Europe

    Keywords: tax group, consolidate
12. 26.03.2014

    Group tax considerations not good cause for breaking a tax g ...

    The Supreme Tax Court has held that a sale of shareholdings within a group was not sufficiently good cause for breaking an unwanted German tax group before its expiry date.

    Categories: Supreme Tax Court cases

    Keywords: profit pooling agreement, tax group
13. 27.02.2014

    Exclusion of domestic sub-subsidiaries from tax group confli ...

    An ECJ advocate general has suggested the court hold that the Dutch provisions on tax groups are in conflict with the freedom of establishment insofar as they do not allow domestic sub-subsidiaries of a foreign subsidiary or domestic subsidiaries of a foreign parent to join or form a Dutch tax group.

    Categories: From Europe

    Keywords: freedom of establishment, tax group, sub ...
14. 23.01.2013

    Bill for Revision and Simplification of Corporate Taxation a ...

    A partial compromise was reached by a mediation committee of the two chambers of Parliament leading to a modified Bill for the Revision and Simplification of Corporate Taxation and of the Tax Law on Travel Cost and to acceptance of a modest increase in the basic personal allowance for income tax. The Bundestag has now passed both bills and forwarded them to the Bundesrat for confirmation at its next session, due to be held on February 1, 2013.

    Categories: PwC Reports

    Keywords: profit pooling agreement, loss carry-bac ...