3 ms·
I wonder why the EU hasn't clamped down on it? Surely it is incompatible with the Internal Market (unless by "leaving Germany" you meant "leaving the EU").
by rwmj 3y ago
I wonder why the EU hasn't clamped down on it? Surely it is incompatible with the Internal Market (unless by "leaving Germany" you meant "leaving the EU").
- yorwba 3y agoIt's essentially an advance payment of capital gains tax before you have realized those gains (fictionally treating it as a sale from yourself in Germany to yourself abroad). If you just sold off the company outright, you'd have to pay the same tax, but then you'd also definitely have the money to do so.
- gndk 3y agoBecause nobody has sued the German tax office and taken it up to the EU courts yet. From my understanding and anecdotes from my tax advisor, most of these cases get settled by the tax office before going to court to avoid creating a precedent. The tax office just lost a case at the highest German court against an entrepreneur who moved to Switzerland, which will force them to accept an unlimited interest-free deferral in most cases. See https://winheller.com/blog/keine-sofortige-wegzugsbesteuerung-europa/ https://winheller.com/blog/keine-sofortige-wegzugsbesteuerun... (in German)
- hnhg 3y agoUnfortunately, so far that deferral will most likely come with the requirement for a security, typically cash. That is the prevailing view of tax specialists right now, but will depend on each individual's experience with their local tax authorities.