Three of our WTS experts are quoted in a recent request for a preliminary ruling from the German Federal Court of Finance to the European Court of Justice dated 18 December 2019 (I R 33/17) regarding the compatibility with EU law of the German fund taxation regime in place from 2004 until 2017 (InvStG 2004).
The team members of WTS Financial Services in Frankfurt published their professional views in two articles in 2010 and 2011, respectively, which have regained relevance due to the court's preliminary ruling request
In recitals 28/29, the court adopts Dr. Steffen Neumann's key arguments on the question of whether an investment fund in contractual form (here: a Lux. FCP) can qualify as an entity subject to German corporate tax (Section 1 (1) no. 5 KStG). View Neumann, Die Besteuerung von Publikums-Investmentvermögen, 2011, page p. 204 f.
In margin no. 38, the Federal Court of Finance refers to the opinion of Christiane Schönbach and Steffen Gnutzmann, published in 2010 already, that the exclusion of a foreign investment fund from the tax exemption applicable to German funds (Section 11 (1) sent. 2 InvStG 2004) must be regarded as a violation of the free movement of capital. View Schönbach/Gnutzmann, Betriebs-Berater-Special 1.2010 to issue 5, p. 30 ff.
Click here for the wording of the request for a preliminary ruling mentioned above (German language).
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