Requirement of Amendment Application by Parent Company for Tax Assessment Changes

• The German Federal Finance Court (BFH) ruled on whether the cancellation of a tax assessment for a limited partnership (KG) as a subsidiary in a tax group can only occur if the controlling company files a change request.
• The ruling was based on the conditions of a tax group under the German VAT Act involving a KG due to updated legal interpretations by the BFH.
• To avoid contradictory actions under the tax code, the controlling company must file a request to change its own tax assessment when seeking to overturn the KG’s tax assessment.
• This requirement holds even during legal proceedings involving the KG’s tax assessment.
• The decision reaffirms a previous BFH ruling from March 16, 2023.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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