Business audit after the death of the business owner

Heirs must tolerate external audit according to the verdict of the Hessian Finance Court Even if the owner of the business has already passed away and the business is not continued by their heirs, the responsible tax office can still order a business audit for past tax assessment periods. This was decided by the Finance […]

Recognition of international judgments domestically

Enforcement of foreign judgments in Germany A court judgment initially has effect within the borders of the state where the judgment was issued. However, in an increasingly international world where cross-border business relationships are more the norm than the exception, the recognition of domestic judgments abroad and vice versa is becoming increasingly important. The recognition […]

Hardship divorce after marital infidelity

Higher Regional Court Zweibrücken: Only the cheated spouse may possibly invoke hardship Before a marriage can be dissolved, the couple must usually complete the separation year. However, there can be exceptions, and in cases of hardship, the separation year may be waived. Infidelity can under certain circumstances be such a hardship case. However, only the […]

Share transfer after final release

Judgment of the OLG Frankfurt from December 15, 2023 – Case No. 17 U 66/22 If a final release decision for the transfer of shares under the Foreign Trade Act exists, the legality and effectiveness of the release are not to be reviewed by a court in civil proceedings. This was decided by the OLG […]

Obligation to delete illegal posts

Platform operators obligated to delete posts following the verdict of the Higher Regional Court (OLG) Frankfurt When illegal content is published via social media, platform operators are responsible. This was decided by the OLG Frankfurt in its judgment on January 25, 2024 (case number: 16 U 65/22). Accordingly, the host providers must delete such posts […]

ProReal Germany 7- Delayed Payment

Investors Must Fear for Their Money For investors of the registered bond ProReal Germany 7, there is bad news: Neither the interest payment due on June 30, 2024, nor the repayment of the bonds by December 31, 2024, is expected to occur on time. This was announced by the company in a mandatory notification on […]

Cloud providers don’t pay a copyright fee

Judgment of the Higher Regional Court of Munich dated February 2, 2024 – Case No.: 38 Sch 60/22 WG e Clouds are not considered remuneration-required storage media or duplication devices. Therefore, providers are not required to pay a copyright royalty. This was decided by the Higher Regional Court of Munich in its judgment dated February […]

German copyright law for cross-border infringements

The Cologne regional court strengthens authors with judgment from Dezember 21, 2023 German copyright law can also be applied when the infringement occurs on a foreign website. This was decided by the Cologne Regional Court in its judgment of December 21, 2023 (Case No.: 14 O 292/22). In Germany, copyright enjoys particularly high esteem. However, […]

Protection against competition in lease agreements

Clause effective only in case of actual impairment In commercial lease agreements, a competition protection clause can be agreed upon. However, a reduction in rent due to a breach of the competition protection clause requires that there has actually been an impairment. This was clarified by the Higher Regional Court of Düsseldorf in its judgment […]

Design protection for the game block remains

The Court of Justice of the European Union (EuG) has rejected a lawsuit with the judgment dated January 24, 2024 – T-537/22. The design of a well-known building block remains legally protected. This was decided by the European Union Court (EuG) with a verdict from January 24, 2024 (Case No.: T-537/22). The design of a […]

Shareholders must bear costs for insolvency

Federal court of justice sees no reason for limitation of liability Shareholders with unlimited personal liability must also bear the costs of the insolvency proceedings in the event of the company’s insolvency. This was decided by the Federal Court of Justice in its judgment of November 21, 2021 (Ref.: II R 69/22). Shareholders with unlimited […]

Corporate insolvencies increased in 2023

Paths to corporate restructuring According to the Federal Statistical Office, the number of corporate insolvencies in Germany between January and September 2023 has risen by 24.7 percent. In absolute numbers, this means that 13,270 companies have filed for insolvency during this period. The increasing number of insolvencies, according to the law firm MTR Legal Attorneys, […]

Raid on DWS due to suspicions of greenwashing

The Frankfurt public prosecutor’s office pursues suspected investment fraud The suspicion of greenwashing at the DWS fund house is not new, and investigations are ongoing. On February 1, 2024, the Frankfurt Public Prosecutor’s Office had the DWS premises in Frankfurt searched for the third time. This was the second raid within two weeks against DWS, […]

OLG Celle: notarial will null due to immorality

Caretaker of the deceased has no claim to the inheritance A will is considered immoral if it exploits a predicament of the testator. The Higher Regional Court (OLG) of Celle has clarified with a decision on January 9, 2024, that immorality may be present if a professional guardian exploits their position to influence a susceptible […]

Illegal loan termination due to negative SCHUFA

Judgment of the Düsseldorf Regional Court of December 21, 2023 – Case No. 8 O 55/23 A bank may terminate a loan for a significant reason. For instance, termination is possible if the repayment of the loan is at risk due to a significant deterioration in the customer’s financial situation. However, a negative SCHUFA (Credit […]

BAG on External Managing Directors as Employees

Entitlement of External Managing Director According to the Federal Vacation Act An external managing director of a GmbH (limited liability company) can be considered an employee within the meaning of the Federal Vacation Act (Bundesurlaubsgesetz – BurlG) and therefore may be entitled to corresponding claims. This was clarified by the Federal Labor Court in its […]

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 […]

Unfair Advertising with “Known from…”

Violation of Competition Law – Judgment of the Higher Regional Court of Hamburg Many companies advertise with the note “known from…”. After a judgment of the Hanseatic Higher Regional Court of Hamburg dated September 21, 2023 (Case No.: 15 U 108/22), stricter rules may apply to this type of advertising. According to the judgment, it […]

BFH: Tax-Free Sale of Real Estate from an Estate

Landmark Judgment of the Federal Finance Court, Case No.: IX R 13/22 When an heir of a community of heirs buys out their shares and subsequently sells a property from the estate, no income tax is due on this transaction. This was decided by the Federal Finance Court in a judgment dated September 26, 2023 […]

Tax Audit – Additional Assessments by the Tax Office

Additional Assessments Not Always Justified Unclear or incomplete accounting records can lead to additional assessments by the tax office following a tax audit, necessitating back payments of taxes. Taxpayers should closely examine such additional assessments, as they may be excessive or unjustified. In accounting, businesses must adhere to the principles of proper bookkeeping and storage […]