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Certified Tax Advisor, Specialist Advisor for International Tax Law

BFH clarifies three-property limit for corporations

If a real estate GmbH sells more than three properties in three years, this is considered commercial trading. The BFH specifies that sustainability is not relevant in this case for corporations.

Tax

Earn-out as wages: Cologne Fiscal Court takes a position

The Cologne Fiscal Court classifies an earn-out linked to the managing director's activities not as a capital gain but as wages – with significant tax consequences for both the seller and the buyer.

Tax

Tax risks: constructive dividends at German GmbHs with foreign shareholders

Constructive dividends pose high tax risks for German limited liability companies (“GmbH”) with foreign shareholders. What is particularly important now in terms of performance relationships within the group.

Tax

Reporting obligations pursuant to Art. 138 AO – what is increasingly coming to light during tax audits

Reporting obligations pursuant to Art. 138 of the German General Tax Code (“AO”) are often underestimated – but they are becoming an increasingly important focus during tax audits. What companies need to pay particular …

Tax

What to do if there is no successor in sight?

If succession within the family is not possible, a sale or management buyout are viable alternatives. Early planning and close coordination of legal, tax, and structural issues are crucial.

Tax

Changing family businesses: designing sustainable structures

Growing family businesses often encounter structural friction. Only when corporate law, tax structures, and ownership issues are considered together can the model remain viable in the long term.

Interest without payment – still taxable: Saxony Fiscal Court takes a clear stance on taxation in the event of subordination

Tax

Subordination: Possible tax liability despite interest waiver

Interest from shareholder loans can also be subject to tax without actual disbursement – this was decided by the Saxon Tax Court despite subordination.

Tax

Recognizing scope of action in business split-ups

Business split-ups often occur unintentionally in medium-sized structures – with serious tax consequences. Checking for an existing business split-up in good time avoids risks and allows to seize opportunities.