Tax Audit – Suspension of the Assessment Period
In tax law, a four-year assessment period applies. However, the expiration of this period can be suspended by an external audit, as shown by a judgment of the FG Düsseldorf on July 8, 2022 (Case No. 1 K 472/22 U). An audit is time-consuming for companies and can end with high back payments. However, it […]
Drafting of Franchise Agreements
Franchise law is part of distribution law. When drafting franchise agreements, it must be considered that various legal fields need to be taken into account. When it comes to distribution channels and sales opportunities, franchising plays an important role. Nevertheless, franchise law is not an independent legal field, but a complex part of distribution law. […]
Violation of Competition Law Due to Advertising with Strikethrough Prices
Advertising with discounts and strike-through prices violates competition law according to a ruling by the Munich Regional Court on 10/10/2022 if no appropriate reference value is provided. Competition law is intended to ensure fair competition and, among other things, to prevent consumer deception. Offers and discounts are a popular means of attracting customers to products. […]
Avoidance of Bankruptcy
The rising energy prices present many companies with great financial challenges. Managing directors must be aware that an insolvency application must be filed in a timely manner. According to corporate law, managing directors or executive bodies are obliged to file for insolvency immediately upon the occurrence of insolvency, at the latest within three weeks. Reasons […]
Kick-off for European Unitary Patent on April 1, 2023
The starting signal for the European unitary patent is expected on April 1, 2023. Registering patents in EU countries is intended to become simpler and more cost-efficient. Intellectual property represents significant value for companies. Therefore, comprehensive protection is necessary. Patent law is one of the classic areas of industrial property protection. With the registration of […]
Divorce Italian-Style Also Recognized in Germany
The out-of-court divorce of a marriage in Italy must also be recognized in Germany. The ECJ ruled on this with its judgment of November 15, 2022 (Ref.: C-646-20). Family law is becoming a bit more European. So far, the question has been whether an out-of-court divorce in an EU member state is also automatically recognized […]
Representation by a Lawyer in Arbitration Proceedings / Arbitration
Disputes can be resolved in arbitration or arbitration proceedings. Especially in international disputes, arbitration may be more suitable than a court proceeding. Disputes also occur with international business partners. Resolving the conflict through a state court is not always the best way. This is because the courts do not always have sufficient knowledge of the […]
Negative interest rates of Commerzbank impermissible after ruling of the LG Frankfurt
The Commerzbank should not have charged its customers negative interest rates. According to a ruling by the Frankfurt Regional Court, such clauses are inadmissible (Case No. 2-25 O 228/21). The prolonged low interest rate environment has led many banks and savings banks to charge so-called custody fees from their customers. Whether such negative interest rates […]
LAG Munich: Recording Working Hours Despite Trust-based Working Time
Even if trust-based working hours are agreed upon, time recording is necessary. This was decided by the Munich Regional Labor Court on July 11, 2022 (Case No.: 4 TaBV 9/22). Employers must set up time recording systems. The Federal Labor Court made it clear with its decision on September 13, 2022, that there is an […]
Termination of the Commercial Agent Agreement
If a commercial agency agreement is terminated without notice, the commercial agent faces financial losses. Therefore, the commercial agent should respond and use his legal options. The ordinary termination of a commercial agency agreement is possible for both parties at any time without giving reasons, provided the notice periods are observed. However, this is different […]
Illegally withheld taxes are subject to interest
Unjustly withheld taxes must be interest-bearing at 6 percent. This was decided by the Cologne Finance Court in its judgment of November 17, 2021 (Ref.: 2 K 1544/20). If taxpayers fall behind on tax payments, they must pay interest on the overdue taxes. However, tax law also works the other way around, as shown by […]
A Footnote Cannot Correct Misleading Eye-Catching Advertising
An objectively false eye-catching advertisement cannot be corrected by a footnote. This was decided by the OLG Nuremberg in a ruling dated August 16, 2022 (Case No. 3 U 747/22). Advertisements should naturally be as attention-grabbing as possible and catch the consumer’s eye. However, competition law sets limits on such eye-catching advertising that is further […]
FG Münster: No Taxation through Passive Migration
Changes to a double taxation agreement do not lead to the realization of the disentanglement facts and taxation, according to a ruling by the Finance Court of Münster on August 10, 2022. Double Taxation Agreements (DTAs) play an essential role in international tax law. The Finance Court of Münster has now made it clear in […]
Divorce – No Gift Tax on Needs-Based Settlement
A couple can agree in a marriage contract that in the event of divorce, a compensation payment will be made instead of ongoing maintenance payments. Potential gift tax must be considered in this context. German family law provides that a married couple lives in a regime of community of accrued gains. However, different regulations can […]
Federal Court of Justice on Nullity Action Against Expired Patent
Once a patent is no longer in force, it can no longer be challenged with a nullity action. This was clarified by the Federal Court of Justice with its ruling of July 21, 2022 (Ref.: X ZR 110/21). Patent protection is an important tool to protect intellectual property. Since there may be a general interest […]
Gift and Compulsory Portion Supplement Claim
The reservation of the right of residence can still affect the compulsory portion supplement claim in the gift of a property even after more than ten years. This is demonstrated by a ruling of the OLG Munich. Gifts are an excellent means to bypass inheritance tax or also to reduce compulsory portion claims. However, it […]
Federal Court of Justice on the Compensation Claim of the Distributor
A commercial agent or distributor is not entitled to information regarding the gross profit of the company for the calculation of his compensation claim. The Federal Court of Justice (BGH) has ruled this (Ref.: VII ZR 69/19). The compensation claim is regularly a contentious issue between commercial agents or distributors and companies. According to § […]
Temporary Work – Federal Labor Court on Exceeding the Maximum Assignment Duration
Temporary workers can be employed for more than 18 months if corresponding regulations are included in the collective agreement. The Federal Labor Court decided this with a judgment on September 14, 2022 (Case No.: 4 AZR 83/21). The statutory maximum duration for the deployment of temporary workers is 18 months. However, according to the current […]
No Gift Tax After Contractually Agreed Compensation in Case of Divorce
The payment of a severance agreed upon in the marriage contract after divorce is not subject to gift tax according to a decision by the Federal Fiscal Court (Ref.: II ZR 40/19). A marriage contract gives spouses the freedom to regulate many financial matters. For example, the matrimonial property regime of community of accrued gains […]
BAG – Obligation to Record Working Hours
The Federal Labor Court decided in its resolution of September 13, 2022, that employers in Germany must already systematically record the working hours of their employees (Ref: 1 ABR 22/21). The obligation to record working hours in Germany has so far only existed for overtime and Sunday work, explains the law firm MTR Rechtsanwälte. This […]
