The Supreme Tax Court has held that a profit pooling agreement must run for five full years, i.e. 60 months, for tax recognition.
Tax & Legal
In response to an infringement proceeding of the European Commission, the finance ministry has decreed that EU/EEA registered companies with their place of management in Germany are entitled to join an Organschaft as subsidiaries.
The Supreme Tax Court has held that a VAT group parent must be the qualifying shareholder of its subsidiaries.
The Supreme Tax Court has held that there is no serious doubt that a profit pooling agreement must provide for a ten year statute bar on loss subvention claims of an Organschaft subsidiary.
The Supreme Tax Court has rejected an Organschaft as the profit pooling agreement was not properly implemented when the annual profit was surrendered without covering losses brought forward.