This secÂtion proÂvides selectÂed insights into tax-relatÂed legal matÂters and reflecÂtions drawn from my adviÂsoÂry practice.
The focus is not on curÂrent news or short updates, but on legal strucÂtures, recurÂring issues and quesÂtions that extend beyond indiÂvidÂual casÂes. Many of the matÂters brought to me by clients canÂnot be addressed in isoÂlaÂtion; instead, they require a coorÂdiÂnatÂed legal perÂspecÂtive at the interÂsecÂtion of tax law, corÂpoÂrate law and cross-borÂder considerations.
The insights pubÂlished here are intendÂed to proÂvide legal oriÂenÂtaÂtion and to illusÂtrate how comÂplex tax-driÂven sitÂuÂaÂtions can be analysed and strucÂtured from a legal point of view. They do not replace indiÂvidÂual legal advice.
Selected insights from advisory practice
The folÂlowÂing conÂtriÂbuÂtions address issues that freÂquentÂly arise in pracÂtice. They reflect typÂiÂcal sitÂuÂaÂtions in which tax conÂsidÂerÂaÂtions have legal conÂseÂquences, or where legal strucÂturÂing must take tax impliÂcaÂtions into account.
Corporate structuring and governance
Corporate structuring is more than choosing the right legal form
In pracÂtice, corÂpoÂrate strucÂturÂing deciÂsions are often driÂven by tax conÂsidÂerÂaÂtions. HowÂevÂer, choosÂing a legal form, restrucÂturÂing an entiÂty or adjustÂing ownÂerÂship strucÂtures requires a coorÂdiÂnatÂed legal approach that takes corÂpoÂrate law, tax impliÂcaÂtions and liaÂbilÂiÂty issues into account.
Addressing potential separation at the time of formation
At the time of forÂmaÂtion, founders usuÂalÂly focus on coopÂerÂaÂtion and growth. QuesÂtions relatÂing to sepÂaÂraÂtion, exit or conÂflict sceÂnarÂios are often postÂponed. From expeÂriÂence, addressÂing these issues earÂly on can help preÂvent sigÂnifÂiÂcant legal and ecoÂnomÂic fricÂtion later.
When Tax and Corporate Perspectives Diverge
Tax optiÂmiÂsaÂtion and corÂpoÂrate law requireÂments often purÂsue simÂiÂlar objecÂtives but may occaÂsionÂalÂly point in difÂferÂent directions.
Tax structuring and legal assessment
When tax planning reaches legal limits
Tax planÂning often purÂsues legitÂiÂmate ecoÂnomÂic objecÂtives. In pracÂtice, howÂevÂer, tax conÂsidÂerÂaÂtions alone are freÂquentÂly insufÂfiÂcient to creÂate legalÂly susÂtainÂable strucÂtures. As soon as corÂpoÂrate law, liaÂbilÂiÂty or cross-borÂder aspects come into play, comÂpleÂmenÂtary legal analyÂsis becomes essenÂtial in order to idenÂtiÂfy risks and develÂop robust solutions.
When a Tax Structure Raises Allegations of Tax Understatement
Tax strucÂtures may come under scrutiÂny durÂing audits or tax proÂceedÂings. What iniÂtialÂly begins as a tax disÂcusÂsion may evolve into a legal issue if the tax authorÂiÂties raise conÂcerns about a posÂsiÂble tax underÂstateÂment. A clear legal assessÂment of the underÂlyÂing strucÂture can help clarÂiÂfy the sitÂuÂaÂtion and preÂvent furÂther escalation.
When Tax Structures Are Considered an Abuse of Law
Tax authorÂiÂties may quesÂtion a strucÂture as an abuse of legal arrangeÂments. In such sitÂuÂaÂtions, the legal assessÂment of the underÂlyÂing strucÂture becomes decisive.
When tax advisers need legal support in dealings with tax authorities
In dealÂings with tax authorÂiÂties, pureÂly tax-based arguÂments may not always be sufÂfiÂcient. Legal conÂsidÂerÂaÂtions can become deciÂsive, parÂticÂuÂlarÂly in objecÂtion proÂceedÂings, the review of tax assessÂments or negoÂtiÂaÂtions with tax authorities.
Tax audits and cross-border matters
When Tax Audits Raise Structural Questions
Tax audits may evolve from reviewÂing indiÂvidÂual tax posiÂtions to quesÂtionÂing the strucÂture of a comÂpaÂny or ownÂerÂship arrangement.
Cross-border matters require coordinated legal and tax perspectives
Cross-borÂder sitÂuÂaÂtions have become an inteÂgral part of many corÂpoÂrate and priÂvate wealth strucÂtures. ReloÂcaÂtion, interÂnaÂtionÂal shareÂholdÂings or forÂeign assets require a coorÂdiÂnatÂed legal and tax perÂspecÂtive across jurisÂdicÂtions to avoid uninÂtendÂed consequences.
Publications in the German Tax Law Journal (SAM)
For many years, I have pubÂlished artiÂcles on interÂnaÂtionÂal tax law, exit taxÂaÂtion and the impleÂmenÂtaÂtion of the EU Anti-Tax AvoidÂance DirecÂtive in the GerÂman tax law jourÂnal SAM.
These pubÂliÂcaÂtions proÂvide in-depth legal analyÂsis of cross-borÂder strucÂtures and the GerÂman ForÂeign Tax Act.
Frequently asked questions regarding legal cooperation
CerÂtain recurÂring quesÂtions regardÂing legal coopÂerÂaÂtion, the scope of an iniÂtial assessÂment and the nature of my adviÂsoÂry work are addressed separately.