on Income Tax

Exceptional Application of 1/5 Rule for a Person Offering Professional Services

2009-02-02T17:29:13+01:00

Exceptional Application of 1/5 Rule for a Person Offering Professional Services

Learn how and if professional services can qualify for a reduced tax rate if they receive back payment for several in a lump sum.

Giving up the Intention to Achieve Income

2009-02-06T13:05:15+01:00

Giving up the Intention to Achieve Income

Giving up a business is already a hard thing to do but not to be able to utilize business costs still to be met hurts even more.

Income from Shares of a US Limited Liability Company

2009-01-23T13:20:54+01:00

Income from Shares of a US Limited Liability Company

When being a partner in an American LLC and living in Germany, the profit obtained from it is to be reported to the American and German authorities. No problem. In the States, you have the option to be taxed either a as partnership or a corporation. When deciding for one of the options for American taxation, will this decision be also binding for the German tax return? The BFH gave us an answer on August 20, 2008 (re I R 34/08; published on October 22, 2008).

Performing Exclusively in Customer’s Facilities means no Permanent Establishment

2008-12-26T13:23:21+01:00

Performing Exclusively in Customer’s Facilities means no Permanent Establishment

Does the mere activity in the premises of a customer constitute an establishment? The BFH decided on this question on June 4, 2008 (re I R 30/07).

Requirements for Entertainment Bills Have Been Loosened

2010-04-10T07:36:02+02:00

Requirements for Entertainment Bills Have Been Loosened

Wining and dining is a bone of contention between the tax officer and the tax payer. The Tax Court Düsseldorf made the rules less strict with its judgment of December 7, 2009 (re 11 K 1093/07 E).

Reserve Depreciation for Software on a CD Creating a Tax Loss

2011-10-29T15:57:25+02:00

Reserve Depreciation for Software on a CD Creating a Tax Loss

An IT engineer was planning to buy a CD with system software in a local department store and following the rules of depreciation, he wanted to deduct these costs in advance. The BFH (judgment of May 18, 2011, re X R 26/09, published on August 31, 2011) a final answer to this idea.

Tax Office Full Access to Electronic Bookkeeping

2009-01-30T20:58:37+01:00

Tax Office Full Access to Electronic Bookkeeping

The Federal Tax Court decided on September 26, 2007 and published its decision on December 21, 2007 (re I B 53 54/07) whether an official auditor may demand access to electronic bookkeeping or not.

The Activities of a GmbH-Geschäftsführer may be Considered Self-Employment

2009-02-05T16:55:04+01:00

Uniform Outreach Doesn't Automatically Mean Joint Business

2009-02-05T17:24:55+01:00

Uniform Outreach Doesn't Automatically Mean Joint Business

The BFH had to decide on April 14, 2005 (re XI R 82/03), on the disagreement between an office partnership (Bürogemeinschaft) between two attorneys and a tax advisor with their local tax office. All three professionals had their own businesses running from the same office space. They addressed and marketed to the public with the same company's name, using the same letterhead, but their individual income went to individual accounts. As one attorney wanted to leave the partnership, he sold his share for € 425,000 to the tax consultant.

Unusual Renting Requires Proof of Acquiring Income

2009-01-30T20:48:56+01:00

Unusual Renting Requires Proof of Acquiring Income

On May 10, 2007, the Federal Tax Court (re IX R 7/07) clarified the taxpayer's duty that he needs to prove his intention to acquire profit when using unusual financing strategies.

on Income Tax

Exceptional Application of 1/5 Rule for a Person Offering Professional Services

Exceptional Application of 1/5 Rule for a Person Offering Professional Services

Giving up the Intention to Achieve Income

Giving up the Intention to Achieve Income

Income from Shares of a US Limited Liability Company

Income from Shares of a US Limited Liability Company

Performing Exclusively in Customer’s Facilities means no Permanent Establishment

Performing Exclusively in Customer’s Facilities means no Permanent Establishment

Requirements for Entertainment Bills Have Been Loosened

Requirements for Entertainment Bills Have Been Loosened

Reserve Depreciation for Software on a CD Creating a Tax Loss

Reserve Depreciation for Software on a CD Creating a Tax Loss

Tax Office Full Access to Electronic Bookkeeping

Tax Office Full Access to Electronic Bookkeeping

The Activities of a GmbH-Geschäftsfüh­rer may be Considered Self-Employment

Uniform Outreach Doesn't Automatically Mean Joint Business

Uniform Outreach Doesn't Automatically Mean Joint Business

Unusual Renting Requires Proof of Acquiring Income

Unusual Renting Requires Proof of Acquiring Income

The Activities of a GmbH-Geschäftsführer may be Considered Self-Employment