Insolvency tax law

In connection with company crises and restructuring procedures Rödl & Partner is active in the course of formal insolvency proceedings and also out-of-court settlements for all those involved. In spite of the coming into effect of the law in Germany designed to facilitate the restructuring of companies (ESUG) on March 1, 2012, difficulties remain in reconciling insolvency law with tax law. This is particularly true for questions relating to tax law in connection with the taxation of restructuring gains, taxation questions with self-administration and with circumstances where the personal liability of those involved is the focus of the financial authorities.
 
As a result, in recent years the German fiscal court has made a number of rulings which considerably expand the debts of the insolvency assets to the disadvantage of the in¬sol¬vency administrator. Furthermore, the additions to the insolvency law have given rise to new questions regarding the treatment in relation to sales tax of goods and services in the preliminary self-administration or in protection proceedings and questions relating to tax liability.

Who we advise

In the area of insolvency law Rödl & Partner supports companies and insolvency administrators across Germany but also other professional colleagues (lawyers/auditors/tax consultants) with the processing of questions relating to tax law in the course of restructuring and insolvency proceedings or insolvency planning and self-administration procedures.

Important areas

• Gathering of binding information on the question of the taxation of  restructuring gains in insolvency plan procedures
• Expert assessment of questions relating to insolvency tax law
• Tax design to avoid circumstances which result in tax liability at the expense of the insolvency assets
• Representation for companies, self-administrating debtors and insolvency administrators in connection with tax dispute questions
• Support for clients with tax audits carried out by the tax authorities and opposition proceedings against tax assessment notices
• Support for professional colleagues as supplementary advisors in the course of  tax dispute questions with the focus on insolvency law
• Support for insolvency administrators in the area of financial accounting in relation to insolvency law
• Preparation of annual financial statements, tax returns or receipts and expenses accounts in connection with insolvency law as required.