Tag: hidden contribution

Luxembourg vs "Control Premium A", September 2023, Administrative Court, Case No 47391C (ECLI:LU:CADM:2023:47391)

Luxembourg vs “Control Premium A”, September 2023, Administrative Court, Case No 47391C (ECLI:LU:CADM:2023:47391)

“Control Premium A”, hereinafter referred to as “company (AB)” is part of the Portuguese group (CD) and its entire share capital was held by the public limited company (EF). In 2014 (EF) sold 45% of the shares in (AB) to the following companies incorporated under Portuguese law: company (GH), shares representing 17,74% of the capital and voting rights of company (AB) ; company (IJ), shares representing 18,16% of the capital and voting rights of company (AB); company (KL), shares representing 9,10% of the capital and voting rights of company (AB). On the same day, (AB) acquired by share purchase and sale agreement 48,726,550 shares for a sale price of … € per share from the Portuguese company (MN), representing 55,06 % of the share capital of the companies (EF), (GH), (IJ) and (KL), so that it became the majority shareholder of the company (MN), the said sale price still being subject to review in the event that a higher or ... Read more
Luxembourg vs "Control Premium (A)", March 2022, Administrative Tribunal, Case No 43665

Luxembourg vs “Control Premium (A)”, March 2022, Administrative Tribunal, Case No 43665

“Control Premium A”, hereinafter referred to as “company (A)”, is part of a Portuguese group and all of its share capital was held by the limited company (B), hereinafter referred to as “company (B)”. Company (B) sold 45% of the shares in company (A) to the following companies incorporated under Portuguese law: – company (C), representing 17.74% of the capital and voting rights of company (A) ; – company (D), representing 18.16% of the capital and voting rights of company (A); – company (E), representing 9.10% of the capital and voting rights of company (A). On the same day, company (A) acquired 48,726,550 shares under share purchase and sale agreements for a sale price of ….. -per share of the Portuguese company (F), representing 55.06% of the share capital, of companies (B), (C), (D) and (E), so that it became the majority shareholder of company (F), the said sale price still being subject to revision in the event that a ... Read more
Austria vs Shareholder, July 2019, Bundesfinanzgericht, Case No RV/1100628/2016

Austria vs Shareholder, July 2019, Bundesfinanzgericht, Case No RV/1100628/2016

A taxpayer with a 98% shareholding in a joint stock company, CH AG, based in Switzerland had provided EUR 30 million as an interest-free shareholder loan to the company. There was no written agreement. CH AG used this capital to provide loans to two affiliated companies in Austria and Germany, each with an interest rate of 2%. The tax authorities added a 2% interest to the the shareholder loans – based on the interest on the loans passed on by CH AG to its affiliated companies. EXCURSION: In the present case, the argumentation of the taxpayer or the tax representative against interest on the loan was also interesting: In the complaint – with reference to the so-called “relatives’ case law” – it was stated that due to a lack of sufficiently clear agreements, lack of collateral, etc., not at all a “loan” in the tax sense is to be assumed, but that the financing in question is rather a question ... Read more