Taxation of management shareholdings for advisory boards and consultants

Manage­ment invest­ments are part of almost every private equity inves­tor’s invest­ment. Consul­tants and advi­sory board members are often also given the oppor­tu­nity to parti­ci­pate on the same or simi­lar terms as manage­ment. While there are alre­ady a number of court decis­i­ons on the taxa­tion of sala­ried mana­gers with such equity inte­rests, this has not yet been the case for the taxa­tion of advi­sory boards and consul­tants. The Tax Court of Baden-Würt­­te­m­­berg has now deci­ded a first case on June 26, 2017 (- 8 K 4018/14).