Changes in real estate valuation for the purposes of inheritance and gift tax
The Annual Tax Act 2022 includes adjustments of the methods for valuing domestic real estate, which may lead to significantly higher real estate values. Real estate gifts will be particularly affected by this. From 1 January 2023, higher gift tax charges are to be expected in many cases. However, whether action is required shortly before […]
Changes in foundation law – “Update” or mere unification?
The foundation law currently in force urgently needs to be reformed. German foundations pursue almost exclusively charitable purposes and have often existed for several hundred years. Currently more than 23,000 foundations exist in Germany. The following article deals with the adopted changes in foundation law with a special focus on the actual innovations, which go […]
Finally some legal certainty regarding the obligation to notarize convertible loan agreements?!
Convertible loan agreements play an important role above all in the area of venture capital financing – whether at the very beginning as part of early-stage financing or also later in the growth phase, for example for interim financing between two investment rounds. The formal requirements to be taken into account when concluding convertible loan […]
Consequences of non-compliance from a company perspective
“If you think compliance is expensive, try non-compliance” – this much-quoted statement by former U.S. Attorney Paul McNulty makes it clear why it pays off to establish an appropriate compliance system as a preventive measure, even from a company’s point of view. This article deals with the potentially disastrous legal consequences of failing to implement […]
GmbH shares encumbered with usufruct – risk of indirect hidden profit distribution and arrangements
Usufruct arrangements allow the separation of assets and income of an entrepreneurial investment. In this way, different income tax and inheritance or gift tax objectives can be achieved. The ruling of the German Federal Fiscal Court of 14 February 2022, file no: VIII R 29/18 on an indirect hidden profit distribution in connection with GmbH […]
Duty to record working hours – federal labor court publishes reasons for decision
The Federal Labor Court (Bundesarbeitsgericht – BAG) has published the reasons for its decision of 12 September 2022 (1 ABR 22/21) regarding the obligation of employers to record working hours. Not all details have yet been clarified regarding the employer’s obligation to record the working hours of its employees, which is effective immediately. It remains […]