The Constitutional Court has held the exemption of business assets from inheritance and gift tax to be unconstitutional as it is too broad-based. However, the present rules continue in force for a temporary period. Continue reading
Tax & Legal
The Bundesrat passed a tax amendment bill on December 19, 2014 to enact a few minor changes to the tax acts for 2015. Continue reading
The OECD has published an interim report on the first seven of its fifteen planned suggestions towards combatting base erosion and profit shifting (BEPS) by multinationals through aggressive tax planning and tax avoidance projects. Continue reading
The finance ministry has published a draft tax amending bill, basically to enact ECJ judgments against existing provisions and to react to perceived abuses and anomalies. Continue reading
The finance ministry has drafted legislation to tighten and streamline the rules under which tax evaders who come forward can avoid prosecution. Continue reading
The following link leads to a recent interview (video and transcript) with Pascal Saint-Amans, director of the OECD Centre for Tax Policy and Administration on the OECD’s BEPS (base erosion and profit shifting) and associated projects.
We have revised our Guide to Doing Business and Investing in Germany to reflect the position as of January 1, 2014. A pdf version of the new edition can be downloaded from http://www.pwc.de/de_DE/de/internationale-maerkte/assets/fachbuch-doing-business-germany-2012.pdf. The printed edition will be available shortly. Continue reading
The OECD has published a new standard on the automatic exchange of information between tax authorities. This is complemented by a model competent authority agreement drafted as a bilateral treaty between two states.
At the request of the G20 leaders, the OECD has drafted a new standard for the automatic exchange of information between states on accounts held by financial institutions in the one state on behalf of residents of the other. The standard is complemented with a model text for a bilateral agreement between the two competent authorities (competent authority agreement – CAA). The guiding principles are that the competent authority of each state should gather all relevant information during a calendar year and then pass it to the competent authority of the other state by September 30 of the following year. The information to be gathered includes investment income of all types, account balances and sale proceeds. Banks and other financial institutions affected (such as brokers and insurance companies) must observe due diligence procedures with respect to their customers. These include satisfying themselves as to the country of residence of each customer. If a customer has homes in more than one country the information is to be passed to all competent authorities potentially interested. Financial institutions must also identify the beneficial owners of income or assets passed through trusts or similar vehicles, in particular, with taxpayers in view who are prepared to tax the income, but who seek to hide the principal.
Some forty countries have already undertaken to adopt the new standard. These include Liechtenstein, Cyprus and the generally known UK tax havens, but not Switzerland or Austria.
The finance ministry has published a draft of its ordinance on permanent establishment profits following the authorised OECD approach. Continue reading
A new publication has been introduced: PwC’s first Tax perspective from its 16th Annual Global CEO Survey – A focus on tax and corporate reputation. Continue reading