130. Legislative Developments And Outlook

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1. Changes in the effective dates of new provisions

The amendments to the "Act for the Further Reform of the Taxation of Enterprises" reported on in article no. 99 were enacted into law in late December 1997. These amendments benefit taxpayers by making changes in the transitional provisions on the entry into force of stricter rules for loss utilisation by corporate shells (sec. 8 (4) KStG) and loss utilisation under the Tax Reorganisation Act. They also retard the effective date of the repeal of the tax exemption for recapitalisation gains on waivers of debt (sec. 3 no. 66 EStG). See our previous article for details.