The Federal Fiscal Court (Bundesfinanzhof – BFH) has decided that Germany's switchover clause for taxing income from foreign partnerships is incompatible with EU law, even though the European Court of Justice (ECJ) reached the opposite conclusion in the same case, Columbus Container Services v Finanzamt Bielefeld-Innenstadt (C-298/05).
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The new guidance is not meant to reflect a substantial change to UK law, but the requirement that tax advice is ‘likely to be correct’ imposes unrealistic expectations
China and a clutch of EU nations have voiced dissent after Estonia shot down the US side-by-side deal; in other news, HMRC has awarded companies contracts to help close the tax gap