Former German thin capitalisation rules fail non-discrimination test
January 19, 2011
The Supreme Tax Court in Germany has clarified that not only did the country’s old thin capitalisation rules not comply with the freedom of establishment provision of the European Community (EC) treaty, but they also infringed the non-discrimination clause of treaties relating to companies resident in non-EC countries.
“The decision of the Supreme Tax Court states that the thin cap rules, until 2003, are not compatible with articles in the treaty between Germany and Switzerland,” said Arianne Jerey-Hener, of German law firm Luther – Taxand.
Sorry. You must be a subscriber to view this article. Alternatively, why not take a free trial? To subscribe and access this article immediately simply click here or call +44(0)207 779 8380.