Again, after a bag of mixed signals in March, I do not really know what to make of the April 2018 data:
Shall – especially in a group-structure – a loss-carrying subsidiary be wound-up, quite frequently (and especially with regard to taxation) the question arises, on how to handle any group loans that may have been granted to the subsidiary. In order to synchronise the actions of the tax authorities in these cases, the Frankfurt Regional Tax Office (“Oberfinanzirektion Frankfurt, OFD Ffm”) has recently issued a general decree, which shall be discussed in the following article.
The discussion about the introduction of a specific criminal law for enterprises (“Unternehmensstrafrecht“) has been on and off the political agenda for several years, although it was rather quiet for the last year. Now, the Coalition Agreement of the (not so recently any more) sworn federal government resumes this discussion and envisages a comprehensive revision of the sanctioning law for enterprises.
In a ruling issued in January 2017, the German Federal Court of Justice (“Bundesgerichtshof, BGH“) has once again extended the scope of liability for a so-called “hard” letters of comfort.
A suitable instrument to enforce civil claims?
After discovering criminal offenses, the question often arises on how to ensure that civil claims against the wrongdoer – for damages or recovery of the misappropriated assets – are best safeguarded and pursued. While the new rules on asset recovery (cf. here) undoubtedly make it easier to enforce civil claims for injured persons, it should not be ignored that the law enforcement agencies will still predominantly focus on the criminal aspects of the crime and not its civil consequences. For this reason alone, it may make sense not to wait for a criminal conviction, but to early on collect own knowledge also with regard to the enforcement of civil law claims. Also in order to be able to monitor the status of the criminal procedure, the inspection of the criminal files is a suitable instrument.
Due to my annual skiing-holidays, I am a little late with my January monthly and thus had to watch in awe the stock exchanges crashing all over the world. Currently, the search is ongoing for the reasons of this crash. I will dwell deeper into this in the next month. Before, let’s look back into January – where the GroKo was still under construction and the German economy seemed to happily hum along:
As an awesome year drew where record chased record, Germans finally seemed to enjoyed themselves rather than going out on a shopping-spree. At least that is what the incoming figures about retail around Christmas tell us: Despite growing by a healthy three per cent, especially smaller retails seem to be not too happy about their … more
As already previously reported here, the German lawmaker was very active during the last weeks of the past legislative period – especially in the area of compliance / prevention of white collar crime. The reform of the German Money Laundering Act, including the introduction of a Transparency Register, hereby occupies a prominent position.
Due to the reduction of the upper limit for cash transactions (previously Euro 15,000), as well as the introduction of extensive analysis, documentation and reporting duties, which are generally not dependent on the size of the company, the effects for SMEs are still underestimated.