After approving the package of measures designed to “secure jobs by strengthening growth” several weeks ago, the German government has launched its second program to stimulate the German economy. Under this new package, a tax relief of EUR 2.9 billion will be granted in 2009 and starting in 2010, the income tax will be reduced by EUR 6.05 million. Continue →

The clearing up of the bribery scandals has cost Siemens around EUR three billion since their beginning two years ago. This sum also includes a reserve for fines still expected to be imposed by American and German authorities as well as EUR 520 million (Approx. USD 645 million) for back taxes. Continue →

The Bundesrat, the second chamber of the German Parliament, finds the governments suggestions to fight „professional claimants“ insufficient, as reported by the German Daily Frankfurter Allgemeine Zeitung (FAZ) in its 12 December 2008 issue. Continue →

In the case under consideration, the plaintiff A was a managing director of both a German company as well as, between 2001 and 2005, managing director of a Belgian besloten vennootschap met beperkte aansprakelijkheid (BVBA). A´s activities for the BVBA were performed partly in Belgium and partly in Germany and he kept a residence in both Belgium and Germany. Continue →

According to Wirtschaftswoche, it was offered the bank data of 21 million citizens for EUR 12 million (approx. USD 15 million). As an example, the magazine received a CD containing 1.2 million data sets. The purchase price was not paid, however, and the CD was handed over to the prosecution authority of Düsseldorf, as the news agency Associated Press reported on 7 December 2008. Continue →

On 9 December 2008, the German Federal Constitutional Court announced its long-awaited decision on the cutback of the commuter tax allowance. Continue →

The German government has enacted the EU Value Added Tax (VAT) Directive into national legislation by passing the Annual Tax Act 2009. This amendment will have several effects on German VAT law. For example, Sections 3a and 3b of the German VAT Code (Umsatzsteuergesetz, UStG) have been redrafted and several other sections have been significantly amended. Continue →

It is done! The Bundesrat, the second chamber of the German Parliament, has passed the reform of the inheritance tax, as Financial Times Germany reported in its 5 December issue. Continue →

The German Company Law Reform, effective since 1 November 2008, introduced a so-called “light” version of the regular Limited Liability Company (GmbH), the “Unternehmergesellschaft (haftungsbeschränkt)” (UG), which can be founded with only EUR 1. Continue →

The German Federal Court of Justice announced new guidelines for penalties on tax fraud in a press release from 3 December 2008. According to these guidelines, a tax fraud “of high
dimension” is to be assumed if the tax damage is more than EUR 50,000 (approx. USD 62,000). Continue →