Tax & Legal

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Tax & Legal

Federal Ministry of Finance: draft circular on the application of Section 8d of the Corporation Tax Act

The Federal Ministry of Finance has sent the draft of a Ministry circular on the application of Section 8d of the Corporation Tax Act (CTA) – continuance-bound loss carry-forward after loss forfeiture – to the professional associations for comment. Continue reading

Shareholding in corporation as a Special Business Asset II

The Supreme Tax Court has ruled that for the purposes of considering the allocation of a partner’s share in a GmbH to the Special Business Assets II of his partnership interest, regard must be had not only to the business relationship of the GmbH with the partnership – but also to whether the GmbH has a substantial business operation of its own. Continue reading

Ministry of Finance: No Covid 19 deferral of deadline for reporting cross-border tax arrangements (DAC 6)

At a Federal Press Conference on 6 July 2020, the Ministry of Finance in Berlin made the surprise announcement that, following a decision of the Minister of Finance, Germany will not be exercising the option given in the recent EU Directive to extend the reporting deadlines for DAC 6. Continue reading

Federal Cabinet releases draft bill for post-covid stimulus package

The German Federal Cabinet has released the draft bill on the crisis management package aimed at mitigating the economic impact of the COVID 19 pandemic. The bill is due to have its first reading at the Bundestag on 19 June 2020, with the 2nd /3rd readings and the final decision of the Bundesrat expected on 29 June 2020. On this timetable the publication in the Federal Law Gazette should occur on 30 June 2020, with the law becoming effective on 1 July 2020. Continue reading

EBA: Report and Action Plan on dividend arbitrage trading schemes such as Cum/Ex and Cum/Cum within the EU

On 12 May 2020, the European Banking Authority – EBA – published its report on the measures and reactions of the addressed authorities in the EU Member States on dividend arbitrage trading, such as Cum/Ex and Cum/Cum schemes. The report states that the relevance of dividend arbitrage trading schemes for the risk management of credit institutions is viewed differently. This is due, in particular, to the different tax systems of the Member States. Nevertheless, the EBA concludes that facilitating tax fraud is detrimental to the integrity of the financial system across the EU as a whole. The EBA is therefore presenting an action plan connected to recent legislative changes in the areas of the Capital Requirements Directive (CRD IV/V) and the Anti-Money Laundering Directive. The Action Plan, with steps taken by the EBA itself as well as and other measures suggested by the EBA, complement existing instruments used by competent authorities and credit institutions. Continue reading

Covid-19 Italy: Measures to support the business liquidity of the enterprises and the credit sector

Prepared by Fabio Alberto Regoli

On 19 May 2020 the Law Decree no. 34 has been published in the Official Gazette (“Rilancio Decree“). The new emergency decree is in line with the previous Cura Italia and Liquidità Decrees, introducing inter alia measures to support the liquidity the capitalization of enterprises, incentives and tax credits as well as measures in the context of indirect taxation, tax assessment and tax litigation. Continue reading