Service to subsidiaries does not exist if an economically indivisible total service is proportionately allocated to them

BFH , judgment of February 12, 2020 – XI R 24/18

1. The tax courts are bound by an express decision of equity by the tax office that a company is not to be treated as a controlled company.

2. In order for a holding company to have the status of a company, its taxable output payments to its subsidiaries do not have to have any special “interventional quality”. It is also sufficient if such services are intended in the future.

3. A service commission within the meaning of Section 3 (11) UStG in relation to subsidiaries does not exist if an economically indivisible overall service is proportionately allocated to them.

Source: openjur.de

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