By Dieter Endres and Angelika Thies, PricewaterhouseCoopers, Frankfurt/Germany
Prof. Dr. Dieter Endres is the head of the tax and legal services practice in Germany, Dr. Angelika Thies is an international tax partner in Frankfurt
As usual in the closing weeks of the year the German legislators have again come up with an omnibus tax bill. The Corporate Tax Development Act adds a, by German legal standards, short sentence to the Organschaft provisions of the Corporation Tax Act stating that, "A loss of an Organschaft parent is not to be taken into account for domestic taxation insofar as it is taken into account in a foreign state when levying a tax comparable to the German taxation on the Organschaft parent." The government's official explanation of this proposed change to the law attached to the bill laid before parliament says, almost equally succinctly, that, "The additional new sentence is to prevent losses of dual resident companies from being offset twice over, at home and
