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Publication in the current GWR: BFH on income adjustments according to Sec. 1 para. 1 AStG

Topics:

  • Tax law, Corporate law

Advising lawyers:

Dr. Philipp Gold, Sarah Kaspar

Dr. Philipp Gold, Lawyer, Tax adviser and Partner at Momentum and Sarah Kaspar, Lawyer and Associate at Momentum, have published in the new issue of GWR (Zeitschrift für Gesellschafts- und Wirtschaftsrecht, issue 2/2022, page 37 et seq.).

The publication covers a ruling of the German Federal Fiscal Court (Bundesfinanzhof) dated 09.06.2021 (Ref. I R 32/17) regarding income adjustments pursuant to Sec. 1 (1) AStG in the case of the granting of unsecured loans to affiliated controlled companies due to a lack of arm's length.

The BFH had already issued a pilot ruling on the question of the applicability of Sec. 1 (1) AStG and has denied a blocking-effect of Art. 9 I OECD-MustAbk on February 27, 2019 (Ref. I R 73/16).

In the ruling of 09.06.2021, the BFH provided further guidance on the factual element of arm's length in Section 1 (1) AStG, as well as on the legal consequence of the priority of interest adjustments.

GWR 2022, 37 - beck-online