Shearman & Sterling LLP (JD Supra Germany)
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COVID-19: Update for Borrowers and Lenders in Germany
In light of the growing pandemic of COVID-19 the German government has decided on a number of unprecedented restrictions for all areas of private and business life which were unimaginable just a few weeks ago. As a result, many production facilities and businesses had to shut down. While the consequences for many companies are already dramatic, the full impact on the economy is still...
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New Transaction Value-Based Merger Reporting Threshold in Germany: Much Ado About Little?
Germany this summer introduced a new transaction value-based set of reporting thresholds. Austria introduced a similar provision which will enter into force on November 1. On the European level, the Commission is contemplating to introduce a transaction value-based reporting threshold as well. The new German thresholds are subsidiary to the primary purely turnover based thresholds, i.e., they...
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New Transparency Register in Germany - Obligations and ‘To Dos’ Pursuant to the New Prevention of Money Laundering Act
On June 26, 2017, the German Prevention of Money Laundering Act (the “Act”) implementing the 4th EU Money Laundering Directive (Directive (EU) 2015/849 of May 20, 2015, the “Directive”) came into effect. The Directive requires all EU Member States to ensure that certain information on beneficial ownership of corporate and other legal entities is held in a central register in each Member State. In
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New Case Law on Upfront Fees in German Loan Agreements
On 4 July 2017, the German Federal Court of Justice (BGH)—in two separate cases—held that pre-formulated agreements on work fees that are payable independent from the term of the underlying loan and agreed between a financial institution and an entrepreneur (Unternehmer) are invalid.
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German Constitutional Court Declares Parts of Provisions Regarding Forfeiture of Tax Losses and Loss Carry Forwards Unconstitutional
The German Constitutional Court held in its decision dated 29 March 2017 (published on 12 May 2017) Section 8c sentence 1 German Corporate Income Tax Act (KStG) (introduced in 2008 and replaced by the identical provision of Section 8c para. 1 sentence 1 KStG) to be unconstitutional.
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Taxation of Restructuring Profits in Germany - Tax Administration and Legislator Swiftly React to a Recent Detrimental Decision of the German Federal Fiscal Court
A recent decision by the German Federal Fiscal Court (BFH) has caused significant concerns in the restructuring community because it will severely complicate future restructurings in Germany or even make them impossible overall. In its decision dated 28 November 2016 (GrS 1/15, published on 8 February 2017) the court held that the so- called restructuring decree (circular on taxation of...
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German Court Joins Increased Trend to Police Internet Sales
The luxury bathroom fittings manufacturer Dornbracht has lost its appeal to the German Supreme Court against an order from a lower court awarding damages of €820,000 to a retailer because of losses suffered due to an anticompetitive clause in Dornbracht’s distribution agreements. The case is one of several recent examples of private enforcement in Germany against competition law...