Entries by Ester Hahn

MORE TRANSPARENCY – MORE LEGAL CERTAINTY? THE MAURACH DRAFT FOR THE MODERNIZATION OF THE LAW ON PARTNERSHIPS

On 20 April 2020, the commission of experts appointed by the Federal Ministry of Justice and Consumer Protection presented the so-called Maurach draft for the modernization of the law on partnerships. The draft provides in particular for the introduction of a public register for civil law partnerships, the codification of a right of non-decision in partnership law and the opening up of partnerships to members of liberal professions. Partners in partnerships should keep an eye on further efforts in the legislative process to identify the resulting need for adjustment and implement it in good time.

THE TAX-PRIVILEGED SALE OF FREELANCE PRACTICES – BFH ON THE APPLICATION OF PREFERENTIAL RATES IN THE CASE OF (MARGINAL) CONTINUATION OF FREELANCE ACTIVITY

In a recent decision, the Federal Court of Finance (BFH) specifies the criteria according to which, after the sale of a freelance practice, the resumption of the freelance activity within the previous local sphere of activity is not detrimental to the tax privileges of the capital gains realized on the sale.

THE AMENDMENT(S) OF THE LAW AND THE ORDINANCE ON FOREIGN TRADE AND PAYMENTS

The legislator has substantially expanded and sharpened the scope of application of the review of foreign investments. Instead of an actual threat to the public safety or order, the likeliness to affect the public safety or order is now sufficient for a prohibition. In addition, an enforcement ban has now also been introduced for transactions regarding companies active in the critical technologies and branches listed in the catalogue of section 55 para. 1 sentence 2 German Foreign Trade and Payments Ordinance that has been further complemented by companies active in certain fields of the health sector.

ACT ON MITIGATING THE EFFECTS OF THE COVID-19 PANDEMIC – CHANGES IN INSOLVENCY AND CORPORATE LAW

Insolvent, but (for the time being) no obligation to file for insolvency! This is the heart of the insolvency law related legislative measures which have been adopted last week in a rush to secure the existence of German Companies. However, also a number of other insolvency law provisions have been suspended or relaxed so as to facilitate and foster cash inflow and financing activities for the companies affected by the current crisis.