German financial authorities on treatment of loan granted to subsidiary

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.


Coalition Agreement on Criminal Law for Enterprises

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. 


Access to records in criminal proceedings

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.


The German Economy in January 2018 – no breathtaking…

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:


Reform of German Money Laundering Provisions

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.