Thomas Sauter, KPMG Frankfurt
For editorial cut-off date, disclaimer, and notice of copyright see end of this article.
1. New loss utilisation decision
The lead article of German News no. 3/1998 (sec. 2.2 of article no. 148) reported on the Federal Tax Court (FTC) judgement of 13 August 1997 construing the term "new business assets" (neues Betriebsvermögen) in § 8 (4) KStG, a statute designed to prevent the loss carryforwards of corporate shells from being used for tax avoidance purposes. In August 2001, the Federal Tax Court rendered its second major decision on § 8 (4) KStG (judgement of 08 August 2001 – I R 29/00 – DStR 2001, 1974). This decision likewise focuses on the injection of new assets.
