PwC

Tax & Legal

Tax & Legal News – Issue 3, June 2015


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

PwC Reports

  • Constitutional Court refuses case against double charge to income and inheritance tax on interest claims

Official Pronouncements

  • LIFO – open questions clarified
  • Bank interest
  • VAT invoiced in error can be settled with that on main supply
  • Land – taxable value notifications provisional

Supreme Tax Court Cases

  • No foreign passive income attribution for trade tax
  • Minimum taxation not a reason for provisional assessment
  • Hedging gain not taxable with main transaction
  • Capital gain holding period runs to date of binding agreement to sell
  • EEA donations must be supported
  • No spread of tax-free employee share benefit over all employees
  • Internet trade in pharmaceuticals: no deduction for payments to health fund customers
  • Mail order attempt to avoid VAT fails

From Europe

  • Roll-over relief provision infringes EU freedom of establishment
  • 10-year tax deferral on gain on transfer of assets to other member state not disproportionate
  • Estimated taxation on deemed income from non-transparent third country investment funds upheld
  • Continued German tax liability under DTT does not conflict with Swiss free movement agreement?
  • Partnerships to be eligible for VAT groups?

From PwC

  • Guide to Doing Business and Investing in Germany

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