On 24 March 2021, a government draft bill aiming to implement the Anti-Tax Avoidance Directive (ATAD) passed the cabinet (in the following referred to as âDraftâ) after lengthy political efforts. Continue reading
Tax & Legal
If the shareholder’s right of membership in a domestic stock corporation (AG) lapses because the AG is dissolved, wound up and deleted from the register as a result of insolvency, the shareholder incurs a taxable loss if he does not receive his contribution back in full or in part. If such shares are deleted from the shareholder’s securities account by the custodian bank before the AG is removed from the register, the loss will be considered to arise at the time of the deletion by the custodian bank. However, a loss cannot already be assumed to have arisen at the point when a distribution of assets can no longer be objectively expected as part of the final distribution of the assets of the AG or when the listing of the shares on the stock exchange is discontinued or their listing is revoked. This was the judgment (VIII R 20/18) of the Supreme Tax Court on November 17 2020 and published on 11 March 2021. Continue reading
Third Corona Tax Relief Act: Following the decisions of the coalition committee on 3 February 2021 further Corona aid for companies is planned. Continue reading
The EU is taking measures to enhance corporate transparency of big multinational companies. Member statesâ ambassadors mandated the Portuguese presidency to engage in negotiations with the European Parliament for the swift adoption of the proposed directive on the disclosure of income tax information by certain undertakings and branches, commonly referred to as the public country-by-country reporting (CBCR) directive. Continue reading
According to the results of a joint conference of representatives of the Federal Government and local states (LĂ€nder) of 19 January 2021 a significant improvement in the tax treatment of certain digital assets is planned. — The reaction of the tax authorities was not long in forthcoming. Continue reading
In a recent judgement the European Court of Justice (ECJ) has clarified that it is contrary to the freedom of establishment to deny the deduction of interest costs on a loan from a normally taxed group company, if this would not have happened had the loan been granted from a normally taxed Swedish group company instead. Continue reading
The Supreme Tax Court held that a merger with retrospective tax effect does not lead to a merger profit for a former and meanwhile deceased shareholder of a limited company even if the shares were acquired gratuitously after the effective (retroactive) tax transfer date. Continue reading
The German Federal Ministry of Finance has published a draft bill for a so-called “Tax Haven Defense Act”, which provides for the implementation of defense measures in regard to business relationships or shareholdings with reference to certain non-cooperative states. Continue reading
The Supreme Tax Court has asked the European Court of Justice (ECJ) for a preliminary ruling on the input tax deduction of a functional (operating) holding company from certain input costs. Continue reading
VAT refund application for the 2020 refund period must be submitted no later than 31 March 2021. Continue reading