Tax Audit for Limited Tax Liable Persons

Ruling of the Federal Fiscal Court (BFH) on December 20, 2023, Ref.: I R 21/21   A tax audit for persons with limited tax liability can only be ordered by the tax office and not by the Federal Central Tax Office (BZSt). This was clarified by the Federal Fiscal Court (BFH) in its ruling on […]

Gift Tax for Family Foundations

Ruling of the Federal Fiscal Court (BFH) of February 28, 2024, File No.: II R 25/21   Family wealth should ideally be passed on to the next generation or generations with minimal tax burdens. Establishing a family foundation can be helpful in protecting assets. However, a recent ruling by the Federal Fiscal Court (BFH) on […]

Possibility of Online Lawsuits

Federal Ministry of Justice Presents Draft Law   Digitalization is also set to become more prevalent in German courts. To this end, on September 4, 2024, the Federal Ministry of Justice presented a draft for the “Law on the Development and Testing of an Online Procedure in Civil Jurisdiction.” Behind this cumbersome term lies, simply […]

Grandparents’ Right of Contact

Decision of the Higher Regional Court of Brandenburg, Case No.: 9 UF 204/23   Even if parents are separated, family law generally assumes that it is beneficial for the child to have regular contact with both parents. Grandparents also often place great importance on regular contact with their grandchildren. However, the extent to which grandparents […]

Exclusion from Pension Equalization

Decision of the Berlin Higher Regional Court (KG Berlin) dated March 7, 2024, Case No. 16 UF 112/23   When a marriage fails and a divorce is granted, the family court automatically carries out the pension equalization process. In this process, the pension rights accrued by both spouses are usually divided equally between them. However, […]

Invalid Clause in Software License Agreements

Clauses in General Terms and Conditions (GTC) Must Be Clear and Understandable General Terms and Conditions (GTC) play an important role in structuring software license agreements. They must be clear and transparent. If they are not, the affected clauses may be invalid, as demonstrated by a ruling of the Higher Regional Court of Cologne (OLG […]

Nullity of Real Estate Purchase Agreement

Formal Deficiency of an Advance Payment Agreement and Nullity of the Purchase Contract – Federal Court of Justice (BGH), V ZR 8/23   A formal deficiency in an advance payment agreement does not necessarily result in the entire real estate purchase contract being void. If the buyer can prove a payment made in advance towards […]

BGH on Post-Contractual Non-Compete Clauses

Judgment of the BGH dated 23.04.2024 – Case No. II ZR 99/22 A post-contractual non-compete clause for managing directors of a GmbH (German limited liability company) can remain valid even if a violation results in the retroactive forfeiture of the non-compete compensation. This was ruled by the Federal Court of Justice (BGH) on April 23, […]

BGH on Photomurals and Copyright

Judgments of the BGH of September 11, 2024 – Case No.: I ZR 139/23 / I ZR 140/23 / I ZR 141/23 Photomurals and copyright issues have long occupied the courts. The Federal Court of Justice (BGH) has now clarified, with rulings from September 11, 2024, that the depiction of a photomural on the internet […]

Opportunities in Insolvency

Filing for Insolvency and Restructuring Options   For various reasons, many companies in Germany face economic difficulties. Management must look for suitable solutions to overcome the crisis. In this context, potential insolvency must always be considered, along with the question of when the insolvency application must be filed at the latest. If the application is […]

BGH: AI Cannot Be an Inventor

Influence of Artificial Intelligence in Patent Law – BGH, Ref. No. X ZB 5/22   The use of artificial intelligence – AI for short – is a hot topic. This also brings up legal issues. The German Federal Court of Justice (BGH) has now made an important decision regarding patent law. In its ruling of […]

Inheritance Cases with International Connections

Cross-Border Inheritance and the EU Succession Regulation   An increasing number of inheritance cases have an international dimension, for example, when the deceased has German citizenship but has relocated to Spain after retirement. Such situations can affect inheritance law, which varies between EU countries. In cases involving foreign elements, the question arises: which inheritance law […]

Berlin Will Poses Tax Disadvantages

Bequests and Gifts   For married couples, the so-called Berlin Will or spousal will is particularly popular. It offers the advantage that after the death of one spouse, only the surviving partner inherits initially, thus protecting them from the claims of other heirs. However, it also has the disadvantage that tax exemptions on inheritance are […]

Ex-Wife Not Liable for Husband’s Loan

Judgment of the Cologne Regional Court on Co-Liability in Loans – Case No.: 8 O 232/22   A divorced spouse is not liable for a loan that the ex-partner took out alone during the marriage. This was decided by the Cologne Regional Court in a ruling dated October 19, 2023 (Case No.: 8 O 232/22). […]

Will Valid Despite Divorce

Decision of the German Federal Court of Justice (BGH) of May 22, 2024 – Case No.: IV ZB 26/23   Even after a divorce, a will or inheritance contract in favor of the spouse can remain valid if the couple created the testamentary disposition before marriage. The German Federal Court of Justice (BGH) made this […]

Immoral Damage in Online Trade

Judgment of the Higher Regional Court of Hamm dated April 16, 2024 – Ref. No.: 4 U 151/22   “Rate your purchase” – customers are often invited to rate their online purchases in such or similar terms. There are always competitors who take advantage of this opportunity to damage their rivals on the internet by […]

Federal Labor Court on Occupational Pensions

Judgment of the Federal Labor Court from August 20, 2024, Strengthens Employers – Ref. No.: 3 AZR 285/23 In the case of salary conversion for occupational pensions, employers are required to contribute. However, collective agreements may include different provisions. This also applies if the collective agreement was concluded before the First Occupational Pensions Strengthening Act […]

Contract Void Due to ‘Under-the-Table’ Agreement

Evidence for an “Under-the-Table” Agreement – Judgment of the Regional Court Itzehoe, Case No. 2 O 136/23   “Under-the-table” work can be sanctioned with substantial fines or imprisonment. If a client and a contractor make such an agreement, they not only commit a crime, but the client also cannot claim their money back if the […]

Misleading Advertising with Hair Growth Products

Violation of the Health Claims Regulation   A pharmaceutical company advertised that it could provide thicker hair within a few weeks. However, the claims were deemed misleading to consumers and a violation of the Health Claims Regulation, as decided by the Regional Court of Bamberg. Consequently, the court prohibited the advertising with these claims in […]

BFH on the Amendment of Final Tax Assessments

Correction of the Tax Assessment After an Audit – BFH III R 14/22   If profit is determined using the income-excess method, the manner in which the taxpayer has maintained their records, which only came to the attention of the tax office through an audit, can lead to a correction of a final tax assessment. […]