Tax evasion and cryptocurrencies – immunity through voluntary disclosure
The tax authorities in the German state of North Rhine-Westphalia are increasingly targeting cryptocurrency investors for possible tax evasion. By submitting a voluntary declaration, it may still be possible for tax dodgers to avoid punishment. German weekly news magazine Der Spiegel was reporting as far back as June of this year on the North Rhine-Westphalian […]
Hamburg court gives its verdict on transferring assets tax-free in connection with gift tax
According to a ruling of Hamburg’s fiscal court – the FG Hamburg – from July 11, 2023, it is possible to transfer assets tax-free thanks to a loophole with respect to gift tax (case ref.: 3 K 188/21). The judgment has caused quite a stir, as it suggests that it is possible to avoid paying […]
Plans for modernization of German arbitration law
A paper has been released highlighting the key issues behind plans to modernize arbitration law in Germany, with the ultimate aim of bolstering the country’s reputation as a destination for settling arbitration disputes. There are a number of advantages to resolving disagreements before an arbitration panel instead of a court, particularly in the context of […]
Divorce where one spouse is not on board
Unlike when getting married, it is not necessary for both parties to say “I do” to a divorce. In fact, it may even be possible to obtain a divorce in cases where the married couple have been separated for less than three years. Unfortunately, it is not always possible for the end of a marriage […]
Koblenz court opines on impact of gift of real estate on statutory share
It is possible even for gifts made more than ten years ago to affect the claims of the other heirs following the death of the testator. Such were the circumstances of a case ruled on by Koblenz’s higher regional court – the OLG Koblenz – on April 24, 2023 (case ref.: 12 U 602/22). As […]
Will invalid due to lack of testamentary capacity
One of the prerequisites for a will to be valid is that the testator must have been capable of preparing the will in the first place, which is all the more reason to start thinking about drafting one in good time before this is no longer an option. In Germany, the rules of intestate succession […]
Employer ordered to pay compensation for violating GDPR
Data protection is relevant not only to a business’s customers but also its employees, a fact that employers ought to bear in mind given how costly violations of the General Data Protection Regulation can be for them. The implementation of the GDPR has placed greater demands on businesses with respect to data protection. It is […]
Applying for trademark protection
Registering a trademark makes it illegal for third parties to make unauthorized use of the mark. Its proprietor is thus able to protect themselves against copycats and freeloaders and to enforce their rights. While there is no obligation under trademark law to file an application, it is definitely a good idea as it is the […]
Window closing soon for claiming compensation from Wirecard
Wirecard AG shareholders’ claims for compensation against the now-bankrupt company are set to expire at the end of 2023. Anyone interested in joining the model case proceedings against Wirecard must register their interest by mid-September. The whistle was blown on the Wirecard scandal back in the spring of 2020 when it became known that around […]
Rent reduction in commercial tenancy law
A more than ten percent deviation in the actual size of the rental space from the size cited in the commercial tenancy agreement may justify a reduction in rent, according to Germany’s Federal Supreme Court (BGH). Rent reduction is possible under German commercial tenancy law if the actual size of the commercial space is smaller […]
Project Immobilien Group bankruptcies hit buyers
Companies belonging to the Project Immobilien Group have gone bankrupt. Some of those who bought properties have already paid large down payments and are anxious given the difficult situation. Many building projects have yet to be completed, and yet companies affiliated with the Project Immobilien Group have filed for bankruptcy. The buyers, some of whom […]
Letters of credit in international trade law
Letters of credit (LCs) allow businesses to protect themselves against the possibility of payment delays or defaults in the context of international trade relations. When it comes to international transactions, businesses have to contend with a number of risks, such as payment delays, non-payment, and supply difficulties. One way of ensuring against these sorts of […]
Copyrights in connection with expert technical opinions
For an expert technical opinion to be eligible for copyright protection, it needs to comply with strict requirements. That was the finding of Düsseldorf’s regional court – the Landgericht (LG) Düsseldorf – in a ruling from February 9, 2022 (case ref.: 12 O 114/21). Section 2(1) no. 7 of the German Copyright Act (UrhG) stipulates […]
Companies belonging to real estate group Project go bankrupt
German real estate group Project has really been feeling the effects of the struggling real estate market, with a number of the group’s companies having filed for bankruptcy. Germany’s real estate market has been experiencing a decline in demand due to rising construction costs and high interest rates, and the construction industry is starting to […]
Liability of board members and managing directors for antitrust infringements
Executive board members and managing directors are not personally liable for fines imposed on the company itself. That was the verdict of Düsseldorf’s higher regional court – the Oberlandesgericht (OLG) Düsseldorf – in a judgment from July 27, 2023 (case ref.: VI-6 U 1/22). Board members and managing directors are exposed to significant liability risks, […]
Temporary relaxation of going-concern forecast requirements coming to an end
The recent amendments to German insolvency law, which saw the forecast period for projecting whether a company is likely to survive as a going concern cut from twelve to four months, are set to expire by no later than the end of this year. The response of the German government to the spike in energy […]
Oldenburg court opines on improper application of joint liability in connection with loans
The combination of joint liability and loan agreements has the potential to fall foul of the law to such an extent that the co-debtor cannot be made to pay for the debt. Banking law in Germany sets strict limits on the ability of banks to secure loans. One example of this is the potential for […]
BAG gives its verdict on admissibility of video recordings in wrongful termination proceedings
Recordings from overt video surveillance may be admissible in wrongful termination proceedings. That was the outcome of a recent case heard by Germany’s Federal Labor Court (case ref.: 2 AZR 296/22). Data protection, despite its prominence throughout the German legal system, including in the fields of employment and labor law, does not trump all other […]
Embezzlement in connection with preferential treatment
Paying works council members inflated salaries may amount to embezzlement. That was the verdict of Germany’s most senior court for civil cases – the Bundesgerichtshof (BGH) – in a judgment from January 10, 2023 (case ref.: 6 StR 133/22). Embezzlement lies at the heart of many corporate crimes, including (potentially) the failure to respect the […]
Export restrictions and licenses
Geopolitical developments have increasingly led to a situation in commercial law where it is sometimes necessary to comply with export restrictions when exporting goods from the European Union. Section 4 of Germany’s Foreign Trade and Payments Act (AWG) provides a basis in commercial law for restricting legal transactions if this is necessary in order to […]
