OrbitaxFinancial Court of Hamburg considers unconstitutional 5% add-back of dividend income to taxable income representing non-deductible business
|Approved Changes|Germany
In a recently published decision of 7 November 2007 (5 K 153/06), the Financial Court of Hamburg considered the treatment of intercorporate dividends unconstitutional.
(a) Legal background. Under Sec. 8b of the German Corporate Income Tax Act (CITA), income from dividends is, in principle, fully exempt at the level of corporate shareholders. However, the exemption…
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