BGH delivers ruling on estimates in criminal proceedings for tax offenses

In a judgment from February 10, 2022, Germany’s highest civil court – the Bundesgerichtshof (BGH) – held that while the amount of taxes evaded can be estimated in criminal proceedings for tax offenses, not every method for estimating them is always appropriate (case ref.: 1 StR 484/21). While it is indeed true that, in the […]

OLG Frankfurt opines on the validity of an arbitration ruling

Frankfurt’s higher regional court recently ruled that an award or finding of an arbitration tribunal is invalid if it is not signed by all the arbitrators and no adequate explanation in the form of a note or statement is provided (case ref.: 26 Sch 14/22). Arbitration offers a number of potential advantages over judicial proceedings, […]

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 […]

Unintended consequences of renouncing an inheritance

A ruling by Germany’s highest civil court – the Bundesgerichtshof (BGH) – from March 22, 2023, illustrates the potential for unintended consequences from renouncing an inheritance (case ref.: IV ZB 12/22). Crucially, these consequences could have been avoided by preparing a will. Testators should plan carefully for the transfer of their assets and not relinquish […]

German tax court rules estate tax does not apply to foreign legacies

Estate tax may not be due on foreign legacies. That was the verdict of Germany’s highest tax court – the Bundesfinanzhof (BFH) – in a judgment from November 23, 2022 (case ref.: II R 37/19). It is generally the case that real estate passed on by inheritance is subject to estate tax. But according to […]

Keyword advertising featuring third-party trademarks

In a judgment dated February 9, 2023, the Higher Regional Court (OLG) of Braunschweig held that the use of a third party’s trademark in keyword advertising may be permissible (case ref.: 2 U 1/22). A lot of online advertising today comes in the form of what is known as keyword advertising. This is where an […]

Pros and cons of M&A share deals

A share deal may be the best option for acquiring a business if the intention is to acquire the business as a whole as opposed to simply individual assets, as is the case with an asset deal. Experts are expecting the number of M&A transactions to rise again, particularly in the second half of 2023. […]

Possible to register for Wirecard model case proceedings until September

APAS, the public body in Germany that provides regulatory oversight of auditors of annual accounts, has found that the auditors at EY who were tasked with inspecting Wirecard’s accounts failed to fulfill their professional obligations. The Wirecard scandal blew up in 2020 when it became known that nearly two billion euros had either vanished from […]

Green light given for unitary patent from June 1, 2023

Change is coming to the world of patent law. June 1, 2023 will see the birth of the European patent with unitary effect – or unitary patent, for short – and the Unified Patent Court (UPC) begin its work. Together, this will establish a unitary patent system across the European Union. Commercial law firm MTR […]

ECJ opines on non-material damages following GDPR breach

A violation of the GDPR will only give rise to claims for compensation if damage has actually been suffered as a result. That was the verdict of the European Court of Justice (ECJ) in a judgment from May 4, 2023 (case ref.: C-300/21). Businesses today administer large quantities of sensitive personal data, and this means […]

Compensation for failure to comply with obligation under GDPR to provide information

Violations of the General Data Protection Regulation (GDPR) may lead to heavy fines. What’s more, those impacted by a violation can file claims for compensation. The entry into force of the GDPR brought with it an enormous increase in the demands placed on businesses with regard to the protection of data. Infringing the Regulation can […]