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Tax & Legal

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Tax & Legal

Penalties due to incomplete cross border documentation in breach of EU law?


In its referral to the European Court of Justice (ECJ) for a preliminary ruling, the Regional Tax Court of Bremen raises doubts as to whether the penalty surcharge under Section 162 (4) Fiscal Code due on failure to present proper documentation in cross border business relations is in line with the freedom of establishment in Art. 49 TFEU and the freedom to provide services (Art. 56 TFEU). Continue reading

ドイツ移転価格税制の改正


2021年5月7日にドイツ連邦議会にて可決、2021年5月28日にドイツ連邦参議院にて審議・可決され、一連の立法手続きを経た「源泉税軽減近代化法」(Gesetz zur Modernisierung der Entlastung von Abzugsteuern und der Bescheinigung von Kapitalertragsteuer, “AbzStEntlModG”)には、移転価格に関連する外国税法(Außensteuergesetz, “AStG”)・租税通則法(Abgabenordnung, “AO”)の改正も含まれています。

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Additional severance payment for earlier termination of employment also tax-privileged


The mutual termination of an employment is normally (also) in the interest of the employer. A severance payment made in return is therefore generally tax privileged. The Lower (regional) Tax Court of Hesse decided that this also applies in the event of an additional payment because of the (premature) termination of the employment relationship prior to the date as originally set in the termination agreement. Continue reading

Cum-ex trading is tax evasion


In its decision of today, the Federal Court of Justice held that claiming a refund or credit of withholding tax in the wake of cum-ex schemes is a criminal act of tax evasion. The proceeds obtained in these illegal transactions and the benefits derived therefrom may be collected. Continue reading

British university college recognized as charitable foundation


An ancient english university college may meet the requirements of a charitable foundation under German law and be exempt from corporate income tax because of its non-profit status. In its decision the Supreme Tax Court also found that the legal structure of the college is equivalent to that of a German foundation within the meaning of Sec. 80 (1) of the German Civil Code. Continue reading

“Rental” of virtual land during online game subject to VAT?


Transactions made in exchange for redeemable play money as part of an online game in virtual space are subject to VAT. This was decided by the Cologne Fiscal Court in August 2019. The final decision of the Supreme Tax Court is expected soon due to the fact that the case has now been pending since January 2020. Continue reading

Assessing care and support needs on behalf of Medical Health Service not exempt from VAT


The Supreme Tax Court held that expert reports (appraisals) on the care and support needs of patients in order to determine the extent of their entitlement to medical care on behalf of the Medical Service of the Health Insurance (“MDK”) are not exempt from VAT under national law. A tax exemption under EU law is also not possible according to an earlier ECJ judgement pertaining to the case in dispute. Continue reading