Retroactive Application of Tax Laws
Judgment of the Hessian Finance Court on the Taxation of a Severance Payment Tax laws can have a retroactive effect following a decision by the Hessian Finance Court on November 21, 2023 (Case No.: 10 K 1421/21). Accordingly, a severance payment can be taxed in Germany since 2017, even if the taxpayer has since moved […]
Cologne tax court rules special funds can receive preferential tax treatment
Special investment funds are eligible for preferential tax treatment, according to a recent ruling of the Finanzgericht (FG) [Fiscal Court of] Cologne from August 24, 2022 (case ref.: 12 K 1540/19). German tax law allows special funds established under Luxembourg law to benefit from certain tax privileges. MTR Legal Rechtsanwälte, a commercial law firm whose […]
Voluntary disclosure – Hesse purchases Pandora Papers
The German state of Hesse has begun delving into the so-called “Pandora Papers” with a view to uncovering evidence of tax-related offenses. Anyone considering submitting a voluntary declaration for tax evasion ought to take action now. The name “Pandora Papers” refers to the millions of financial documents that were leaked in 2021 containing information about […]
BFH says no tax deduction for final losses of foreign branches
In a judgment from February 22, 2023, Germany’s highest tax court – the Bundesfinanzhof (BFH) – ruled that German companies may not be able to offset losses incurred by a branch office in another EU country against profits generated in Germany as a means of reducing their tax burden. Under international tax law, domestic companies […]
