Tax & Legal

Categories: All (2 found)

1. 09.01.2026

   Hidden profit distribution due to worthless right of first r ...

   A shareholder with a 50.1% stake in a limited liability company (GmbH) who reduces his debt by assigning a non-valuable position designated as a right of first refusal in connection with a property belonging to him to another group company which he indirectly controls might face the consequences of a hidden profit distribution. In a recent judgment the Supreme Tax Court held that this is the case if the GmbH “pays” for this by “taking over” the negative clearing account with the other group company.

   Categories: Supreme Tax Court cases

   Keywords: worthless debt, hidden distributions
2. 15.10.2012

   No abuse in sale of worthless debt to new shareholder

   The Supreme Tax Court has allowed a manoeuvre effectively avoiding forfeiture of a loss carry-forward on change of shareholder through the sale of a worthless shareholder loan to a new shareholder followed by recovery from the injection of new capital.

   Categories: Supreme Tax Court cases

   Keywords: worthless debt, forfeiture of a loss, ch ...