BGH: D&O insurer liable for payments made after the onset of insolvency
The insurer behind a D&O policy is liable for payments made after the onset of insolvency. That was the verdict of the Bundesgerichtshof (BGH) – Germany’s Federal Supreme Court – in a judgment from November 18, 2020 (Az.: IV ZR 217/19).
Automatic exchange of information with Turkey – Voluntary declaration for tax evasion
Turkey is the latest country to sign up to the automatic exchange of information as part of efforts to combat cross-border tax evasion. It is still possible to submit a voluntary declaration for tax evasion. There are now more than 100 countries participating in the automatic exchange of (financial) information (AEOI). Former tax havens such …
OLG Hamm on reporting illegality in e-commerce
A company is not in breach of competition law if it reports illegality by a competitor on an online e-commerce platform and the allegations are true. That was the verdict of the Oberlandesgericht (OLG) Hamm – the Higher Regional Court of Hamm. Antitrust infringements are a persistent feature of the e-commerce landscape. Large online platforms …
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BFH: Obtaining an expert opinion on purchase price allocation of land
In the event of a dispute between a taxpayer and the tax authorities regarding the allocation of the fair market value of land and buildings in real terms, the fiscal courts are required to obtain an expert opinion. Appraisals of the fair market value of buildings and land in real terms are often contentious. While …
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LG München: No risk of confusing advertisements featuring maritime themes
The Landgericht (LG) München – Regional Court of Munich – has ruled that consumers were not being misled by two manufacturers promoting their fish products using a captain, and that the advertisements in question therefore did not violate competition law.
FG Düsseldorf: Demolition of inherited family home may retrospectively give rise to estate tax
The demolition of your parent’s home post-inheritance may lead to a retrospective loss of tax-exempt status. That was the verdict of the Finanzgericht (FG) Düsseldorf – the Fiscal Court of Düsseldorf – in a judgment from January 8, 2020 (Az.: 4 K 3120/18 Erb).
Obligation to file for insolvency only suspended in cases of over-indebtedness, not illiquidity
There has been a limited extension until December 31, 2020 to the suspension of the obligation to file for insolvency due to the coronavirus pandemic. However, this only applies to cases of over-indebtedness, not illiquidity.
Law aimed at promoting fair competition passed
The Bundestag and Bundesrat – Germany’s lower and upper houses of parliament respectively – have passed a law designed to promote fair competition, with the legislation expected to curb misuse of warning notices significantly.
Transfer of shares from company to private hands not an acquisition
On January 1, 2009, a flat rate withholding tax (Abgeltungssteuer) was introduced in Germany. A transfer of shares acquired prior to this cutoff date from company to private hands does not amount to an acquisition of shares. That was the verdict of the Finanzgericht Münster in a judgment from March 26, 2020 (Az.: 8 K …
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Business closure due to COVID-19 – Claims against insurer successful
An insurer was forced to indemnify a Munich restaurant for its closure due to COVID-19. The owner’s claim was successful before the Landgericht (LG) München, the Regional Court of Munich (Az.: 12 O 5868/20).