KPMG Germany Webpage
Click on the above link to visit the KPMG Germany webpage on the Mondaq website
For disclaimer and copyright see end of this article.
In articles nos. 72 and 72, we reported on comprehensive directives issued by the tax authorities in draft form dealing with the tax reorganisation act and the so-called "exchange opinion." The final versions of these directives have now been issued (tax reorganisation act = directive of 25 March 1998; exchange opinion = directive of 9 February 1998 - DB 1998, 394).
The "exchange opinion" is a 1958 ruling by an en banc panel (Grosser Senat) of Germany's highest tax court that the exchange of shares in one corporation for shares in a second corporation will, by way of exception, not result in realisation of gain or loss by either party if the shares exchanged are economically equivalent in value, type, and function.
We will comment in more detail on the final text of both directives in forthcoming articles.
Disclaimer and Copyright
This article treats the subjects covered in condensed form. It is intended to provide a general guide to the subject matter and should not be relied on as a basis for business decisions. Specialist advice must be sought with respect to your individual circumstances. We in particular insist that the tax law and other sources on which the article is based be consulted in the original, whether or not such sources are named in the article. Please note as well that later versions of this article or other articles on related topics may have since appeared on this database or elsewhere and should also be searched for and consulted. While our articles are carefully reviewed, we can accept no responsibility in the event of any inaccuracy or omission. Please note the date of each article and that subsequent related developments are not necessarily reported on in later articles. Any claims nevertheless raised on the basis of this article are subject to German substantive law and, to the extent permissible thereunder, to the exclusive jurisdiction of the courts in Frankfurt am Main, Germany. This article is the intellectual property of KPMG Deutsche Treuhand-Gesellschaft AG (KPMG Germany). Distribution to third persons is prohibited without our express written consent in advance.