Markus UngemachBetriebliche Zuordnung von Kapitalgesellschaftsanteilen im deutschen nationalen und internationalen Ertragsteuerrecht

About this book deutschenglish

The allocation of shares in corporations in German Income Tax Law is a complex and at the same time highly practical topic. This topic is regularly the subject of disputes between companies and the tax administration, which is evidenced by the large number of Supreme Tax Court decisions made on this matter, published pronouncements by the tax administration, changes in Tax Law and discussions taking place in tax literature.

The subject of this book is, in particular, the presentation of the principles of allocating shares in corporations to the necessary business assets, discretionary business assets and, with regard to commercial partnerships (co-entrepreneurships), to the necessary special business assets and discretionary special business assets. Taking into account case law and administrative opinion, the nuances and differences as well as similarities regarding the principles of the allocation of shares in corporations to sole proprietorships and co-entrepreneurships are shown in detail.

The allocation of shares in corporations to permanent establishments under Treaty Law is also addressed in cross-border case constellations. In this context, considerations and suggestions for assessing the question of allocation in the context of the so-called managerial holding branch as well as the so-called central function of the head office are discussed, and thus in highly practical cases for which there are still no clear guidelines from case law or tax administration.

Particular attention will also be paid to current Treaty Law developments and legislative activities with regard to cross-border issues (in particular the legislative implementation of the so-called “Authorized OECD Approach” – AOA – in German Foreign Tax Law). It is analyzed whether and to what extent this could have any impact on the question of the allocation of shares in corporations.