Tax & Legal

Tax & Legal News – Issue 2, March/April 2017

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

PwC Reports
Leaving the EU: Brexit and its impact on German businesses
Plans to restrict the deduction of royalty expenses to combat tax planning by international groups
US corporate tax reform planned
The long and winding road: Trade Facilitation Agreement now in force
New Ministry of Finance Circular planned: Agreement upon a Revision of the Treatment of Cum/Cum Transactions
Federal cabinet approves new rules as part of the fight against money laundering and financing of terrorism

Official Pronouncements
Promoting electrical mobility: Further tax relief for private use of electric-powered cars
Taxation of company cars in case of leasing
Tax authorities finalise standards for the automatic exchange of financial information
VAT situation for the public sector

Supreme Tax Court Cases and From Europe
No economic ownership of lessee in case of a sale-and-lease back
No extended trade tax deduction on the disposal of an interest in a real estate partnership
Write-downs to fair market value resulting from foreign exchange rate differences on investment units to be added back
Interest paid by foreign partner deductible also in case of two-tier partnership
ECJ rules on Subject-to-tax requirement of the Parent-Subsidiary Directive