In a fundamental decision the Grand Senate of the German Federal Tax Court (Bundesfinanzhof – BFH) has nullified the Restructuring Decree of the German Federal Ministry of Finance. According to the BFH the Restructuring Decree went beyond the tax authorities’ legal competences and was therefore unlawful. The court found that a general regulation regarding the waiver of taxes on profits resulting from restructurings needs to be made by the legislator.  Continue reading