Current topics from law, taxes and economics

LHP attorneys at law report on current developments and innovations in criminal tax law, tax law and corporate law and provide information on selected specialist topics.

Denial of input tax deduction even in the case of "unintentional" participation in VAT evasion in the supply chain

If an entrepreneur evades VAT within the supply chain, this can also lead to tax law sanctions and criminal tax law implications for the honest entrepreneurs in the supply chain. For example, this can result in the tax authorities refusing to allow the honest entrepreneur to deduct input tax - often…

Bitcoin portal skimmed by tax investigation: voluntary disclosures now an issue

Crypto tax evaders no longer get a grace period. The NRW tax investigation department (specifically Bielefeld for the federal territory) is actively investigating crypto investors. The identified data is then matched with personal tax returns.

Coin of the Month - Bittensor

What is Bittensor? Bittensor is a decentralized network and open-source machine learning platform based on blockchain technology. It is designed to provide an open, secure, and scalable machine learning infrastructure involving miners for processing data.

Loss Offset for Derivatives, Futures and CFDs (Contract for Differences)

It is not uncommon for taxpayers to invest in so-called futures or CFDs with cryptocurrency. That is, the taxpayer indirectly invests in derivative financial instruments or certificates, where the cryptocurrencies are merely the underlying of the financial instrument.

BHF: Capital gains taxable in the case of cryptocurrencies

In a ruling dated February 14, 2023, the BFH (IX R 3/22) confirmed the taxability of swaps and sales of cryptocoins in the case of Bitcoin, Ethereum and Monero, provided that a swap and/or sale takes place within one year of the coin's acquisition (Section 23 (1) sentence 1 no. 2 EStG).

BFH: Payments for the waiver of a housing right as immediately deductible income-related expenses

On September 20, 2022 (Ref.: IX R 9/21), the Federal Fiscal Court (Bundesfinanzhof, BFH) issued a landmark decision on immediately deductible income-related expenses. The decision provides clarity in a previously disputed borderline area of the tax classification of compensation payments for the…

Reporting obligations for platform operators under the Platform Tax Transparency Act (PStTG)

With the Platform Tax Transparency Act (PStTG), the national legislator has implemented the EU Council Directive RL (EU) 2021/514 of 22.03.2021 - in short "DAC 7-RL". The PStTG regulates comprehensive reporting obligations for platform operators and an automatic information exchange procedure…

ECJ ruling of 26th February 2019, reference no.: C-135/147 - Standstill clause and taxation under controlled foreign corporation rules in a third-country case (Switzerland)

In its ruling of 26th February 2019, ECJ clarified that the provisions of AStG (Foreign Tax Act), in principle, do not restrict the free movement of capital guaranteed under EU legislation in as far as outstanding audits prove that the relevant provisions under AStG already existed on 31st December…

The consideration of final losses in international tax law - Sudden change of strategy by ECJ towards the revival of border-crossing setting-off of losses

Lawyers/tax lawyers/tax advisers from Cologne report on the legal wrangling regarding the issue of "final losses", providing a perspective on existing certainties - and uncertainties.

Liability of On-Line Platforms for Third-Party Sales Tax

On 1/8/2018, the federal government announced in a press conference that there were plans for a significant legal revision of on-line trading (quote from the press officer).

Cryptocurrencies: Bitcoin and the Tax Authority – When are profits taxable?

The topic of cryptocurrencies is very relevant as regards taxation. More and more investors are investing in cryptocurrencies. They should, at an early stage, look into the question of in how far these investments may result in taxation liability, and, if applicable, also criminal tax law…

Tax Authority Inquiries at airbnb: Lessors Should Consider Voluntary Self-Disclosure

to do. Experience shows that short-term voluntary self-disclosures are often the best solution in order to get off "at low cost".

International Exchange of Information for Tax Purposes pursuant to CRS and FATCA

Provisions and consequences of the Law on the Automatic Exchange of Financial Account Information

Joint Audits: Cologne Fiscal Court specifies Procedural Requirements

Joint Audits – International audits according to art. 12 EUAHiG [Law on Mutual Administrative Assistance in Fiscal Matters] – Cologne Fiscal Court specifies Procedural Requirements (ruling of 23rd May 2017, reference no. 2 V 2498/16)

ECJ permits an exception to the principle of double jeopardy (ne bis in idem) in criminal tax law: Judgement of 20/03/2018, C-524/15

According to art. 103 section 3 of the German Basic Law, no-one can be punished more than once for the same offence (on account of general culpability).

Income from Bitcoins: Investigations Involving Collective Requests for Information?

The topic of Bitcoins is now also relevant in terms of taxation since more and more investors invest in cryptocurrencies and since this, ultimately, results in many tax issues. This is increasingly the case with clients. However, not every inaccurate tax declaration is equivalent to tax evasion.…

The Goldfinger Model - a Case of Tax Evasion?

According to press releases published between 2009 and 2015, the state lost tax revenue of more than one billion euros as a result of the so-called "Goldfinger" model. The name "Goldfinger - which is based on the James Bond movie of the same name - was commonly used for this tax saving scheme…

What is Tax Compliance?

"Compliance" is defined as strategically designed and executed legal conformity with a protection and control system intended to protect against violations of law and the consequences resulting from such.

“Influencer” – A new force in marketing – and German tax obligations resulting from it

In the advertising industry, “influencers” have become a decisive factor. To sell their products and services, companies are always looking for new opportunities, and often use people who do not only market themselves but also the company’s services.

Row ignites after Germany slams 'tax haven' Malta

The Maltese government has reacted angrily after a German state's finance minister called the EU island state "Europe's Panama." Now officials are hunting down Germans allegedly using Malta to dodge the taxman.
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