{"id":44068,"date":"2017-11-26T16:08:36","date_gmt":"2017-11-26T14:08:36","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/tax-evader-thanks-to-private-equity-investment-notification-requirements-for-foreign-shareholdings\/"},"modified":"2017-11-26T16:08:36","modified_gmt":"2017-11-26T14:08:36","slug":"taxpayers-thanks-private-equity-participation-disclosure-duties-for-foreign-investments","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/taxpayers-thanks-private-equity-participation-disclosure-duties-for-foreign-investments\/","title":{"rendered":"Tax evader thanks to private equity investment? Notification requirements for foreign shareholdings"},"content":{"rendered":"

Dr. Chris\u00adtoph Ludwig<\/strong> \u2014 Tax Consul\u00adtant and Part\u00adner Braun Leber\u00adfin\u00adger Ludwig Weidin\u00adger, Munich<\/p>\n

Thomas Unger<\/strong> \u2014 Tax Consul\u00adtant and Part\u00adner Braun Leber\u00adfin\u00adger Ludwig Weidin\u00adger, Munich<\/p>\n

Dr. Robert Wennin\u00adger<\/strong> \u2014 Lawyer and Tax Consul\u00adtant Braun Leber\u00adfin\u00adger Ludwig Weidin\u00adger, Munich<\/p>\n","protected":false},"excerpt":{"rendered":"

Not least since the appearance of various CD-ROMs with the data of German citi\u00adzens and their account connec\u00adtions and move\u00adments abroad, the timely and accu\u00adrate taxa\u00adtion of foreign enga\u00adge\u00adments has again gained in importance.Worldwide, the exch\u00adange of infor\u00adma\u00adtion in tax matters \u2014 espe\u00adci\u00adally with the so-called tax havens \u2014 has been advan\u00adced. In Germany, the tax autho\u00adri\u00adties are now incre\u00adasingly revie\u00adw\u00ading the foreign rela\u00adti\u00adons of German resi\u00addents in this context.<\/strong><\/p>\n

German tax law is some\u00adti\u00admes very compli\u00adca\u00adted and confu\u00adsing. Due to a legal regu\u00adla\u00adtion that is often not known and\/or obser\u00adved, inves\u00adtors in private equity compa\u00adnies may be at risk of beco\u00adming tax evaders. This shows once again that the special features of private equity as an invest\u00adment form were not suffi\u00adci\u00adently thought through when a tax law was enacted.<\/p>\n

Since 2002, there has been a noti\u00adfi\u00adca\u00adtion requi\u00adre\u00adment for foreign share\u00adhol\u00addings. This can usually be fulfil\u00adled without major effort in the case of a direct invest\u00adment. Howe\u00adver, it poses major problems for inves\u00adtors in private equity invest\u00adments, as these are likely to be unable, in purely prac\u00adti\u00adcal terms, to notify the tax autho\u00adri\u00adties of a foreign acqui\u00adsi\u00adtion of an invest\u00adment within the legally prescri\u00adbed period due to their often multi-laye\u00adred dome\u00adstic and foreign invest\u00adment structures.<\/p>\n

As tax advi\u00adsors to many private equity struc\u00adtures, we would like to explain below the legal requi\u00adre\u00adments as well as the current problems and deve\u00adlo\u00adp\u00adments in practice.<\/p>\n

Facts subject to notification<\/strong><\/p>\n

For parti\u00adci\u00adpa\u00adti\u00adons of natu\u00adral persons and compa\u00adnies subject to tax in Germany in foreign part\u00adner\u00adships or corpo\u00adra\u00adti\u00adons, the tax autho\u00adri\u00adties have provi\u00added for a report\u00ading obli\u00adga\u00adtion of the parti\u00adci\u00adpant to the tax autho\u00adri\u00adties in certain cases, which is set forth in Sec. 138 (1). 2 AO (German Fiscal Code) is regu\u00adla\u00adted. These include<\/p>\n","protected":false},"featured_media":18969,"comment_status":"closed","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2454,2464,2506,2556],"product_tag":[1469,1764,2042,2044,2047],"class_list":{"0":"post-44068","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-dr-christoph-ludwig","8":"product_cat-thomas-unger-en","9":"product_cat-fyb-2011-en","10":"product_cat-dr-robert-wenninger-en","11":"product_tag-thomas-unger-en","12":"product_tag-christoph-ludwig-en","13":"product_tag-tax-havens","14":"product_tag-foreign-participation-structures","15":"product_tag-foreign-acquisition-of-shares","16":"pa_sprache-english-3","17":"pa_sprache-german","19":"first","20":"outofstock","21":"taxable","22":"shipping-taxable","23":"purchasable","24":"product-type-variable","25":"has-default-attributes"},"yoast_head":"\nTax evader thanks to private equity investment? Notification requirements for foreign shareholdings - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/taxpayers-thanks-private-equity-participation-disclosure-duties-for-foreign-investments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax evader thanks to private equity investment? Notification requirements for foreign shareholdings - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"Not least since the appearance of various CD-ROMs with the data of German citizens and their account connections and movements abroad, the timely and accurate taxation of foreign engagements has again gained in importance.Worldwide, the exchange of information in tax matters - especially with the so-called tax havens - has been advanced. In Germany, the tax authorities are now increasingly reviewing the foreign relations of German residents in this context. German tax law is sometimes very complicated and confusing. Due to a legal regulation that is often not known and\/or observed, investors in private equity companies may be at risk of becoming tax evaders. This shows once again that the special features of private equity as an investment form were not sufficiently thought through when a tax law was enacted. Since 2002, there has been a notification requirement for foreign shareholdings. This can usually be fulfilled without major effort in the case of a direct investment. However, it poses major problems for investors in private equity investments, as these are likely to be unable, in purely practical terms, to notify the tax authorities of a foreign acquisition of an investment within the legally prescribed period due to their often multi-layered domestic and foreign investment structures. As tax advisors to many private equity structures, we would like to explain below the legal requirements as well as the current problems and developments in practice. Facts subject to notification For participations of natural persons and companies subject to tax in Germany in foreign partnerships or corporations, the tax authorities have provided for a reporting obligation of the participant to the tax authorities in certain cases, which is set forth in Sec. 138 (1). 2 AO (German Fiscal Code) is regulated. 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As tax advisors to many private equity structures, we would like to explain below the legal requirements as well as the current problems and developments in practice. Facts subject to notification For participations of natural persons and companies subject to tax in Germany in foreign partnerships or corporations, the tax authorities have provided for a reporting obligation of the participant to the tax authorities in certain cases, which is set forth in Sec. 138 (1). 2 AO (German Fiscal Code) is regulated. 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