Decision Of The German Federal Tax Court Regarding Private Equity Funds
Mondaq Business Briefing › Germany Law Articles in English (2011)
Linked as:
Extract
Decision Of The German Federal Tax Court Regarding Private Equity Funds
Last week, the German Federal Tax Court (Bundesfinanzhof) published the first decision of a German superior court in which the German Federal Tax Court deals with the differentiation between asset management activities and trade or business activities with respect to private equity funds.
1. Summary The German Federal Tax Court doubts whether the criteria developed by the German tax authorities for the treatment of private equity funds as being engaged in asset management activities are consistent with the applicable law, but does not explain these doubts in more detail. However, a discussion of the criteria for asset management activities as set forth by the German tax authorities was not necessary for the court decision because in the case at hand the private equity fund did not comply with substantial criteria required by the German tax authorities for asset management treatment of private equity funds. In the case at hand the suing investors ...See the full content of this document
Sponsored links
