About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

11 Intertax 1 (1983)

handle is hein.kluwer/intrtax0011 and id is 1 raw text is: News and Trends France: No Reform of the Corporate Tax System The French government withdrew its legislative proposal to replace the existing imputation system (avoir fiscal) by another tax credit system (see News and Trends 1982, p. 205). Germany: Real Estate Transfer Tax As of I January 1982, the rate of real estate transfer tax is reduced from 7 to 2 %. At the same time, most of the existing exemptions are abolished. Germany: Formal Tax Requirements for Contracts with the Controlling Shareholder In a decision of 21 July 1982, the Federal Tax Court narrowed the field of application of the principle that for tax purposes agreements between a company and its controlling shareholders have to be concluded in advance and clearly documented, i.e. in writing. Germany: Proposal for an Obligatory Interest-free Loan Under a new government proposal, individual and corporate taxpayers will be required to subscribe to an interest-free loan which amounts to 5 % of the income tax prepayment for the years 1983 and 1984 and which will be repayable in 1987 to 1989. 25 % of qualifying investments in fixed assets made in the preceding year may be credited against this obligatory loan. Germany: Other Important Tax Proposals The Bundestag adopted the following important tax proposals: - Tax-free reserve in case of takeover of businesses in difficulties: taxpayers who acquire businesses of endangered existence may set up a tax-free reserve of 30 % of 40 % of the acquisition costs. The tax-free reserve must be reintegrated to profits in five annual instalments starting in the sixth year after it was set up. - Losses from passive foreign operations: losses from certain passive foreign investments may no longer be deducted from other income, but only be compensated with future income of the same category derived from the same country. - Value added tax: as of 1 July 1983, the rates of value added tax will be increased to 14 and 7 %. - Local trade tax: addition of long-term interest: under existing law, interest on long- term loans is added to taxable income and long-term loans are added to taxable capital for the purpose of local trade tax (see INTERTAX 1982, p. 214). For 1983, these additions will be reduced by 40 % and starting in 1984, by 50 %. - No thin capitalization legislation: there is no provision in the new tax laws concerning thin capitalization. It is anticipated that this will be the object of a future legislative proposal. Intertax 1983/1 I

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most