Legislative Procedure and Regulatory Framework
The Ninth Act to Amend the Tax Consultancy Act (9th StBerÄndG) is currently in the parliamentary process. During this process, the Federal Council has also dealt with the initiative. Among other things, questions related to the prohibition of foreign ownership in tax consultancy have been raised, which limits the participation of third parties not specialized in the field in tax consultancy firms in order to secure professional independence.
Federal Council Statement: No Initiative for Intensification
Focus on Professional Legal Frameworks Without Additional Restrictions
From the Federal Council’s deliberations, there are currently no indications that an explicit strengthening or intensification of the prohibition of foreign ownership will be pursued politically within the framework of the 9th StBerÄndG. Insofar as the Federal Council issues a statement, it does not imply a concrete signal to extend or restrict the existing participation limits with additional legal regulations.
Significance for Market Participants and Structural Issues
For companies and participants in structures related to tax consultancy, the current professional legal system remains primarily relevant – including the rules on participation and influence – as a reference framework, as long as the legislature does not make deviating decisions. It remains to be seen whether and to what extent future legislative initiatives will again address the handling of foreign ownership issues, depending on further political and legal-policy developments.
Classification: Prohibition of Foreign Ownership as a Core Professional Area
Objective of the Prohibition of Foreign Ownership
Traditionally, the prohibition of foreign ownership is aimed at protecting independent and responsible professional practice. In tax consultancy practice, this issue regularly touches on questions of corporate structuring, capital and voting rights, as well as third-party organizational influence. In this context, the 9th StBerÄndG will also be assessed based on whether it leads to a change in protection mechanisms or maintains the existing regulatory framework.
No Reliable Indications of Legal Readjustment
As far as the current deliberation by the Federal Council is presented in public reports (Source: Haufe, contribution to the 9th StBerÄndG and the Federal Council’s stance), there is currently no reliable line evident that suggests a legal readjustment of the prohibition of foreign ownership within the framework of this amendment law. Thus, the assessment of the legal situation will ultimately depend on what the legislature actually decides and announces in the legislative process.
Outlook on the Further Course of the Legislative Process
It remains to be seen how the process will continue. Legislative proposals can be changed, supplemented, or newly accentuated in certain points during the discussions. Therefore, statements about the final design can only be made based on the respective current draft versions and the binding decision-making status.
Contacts for Tax and Corporate Law Interface Issues
If clarification is needed in connection with the prohibition of foreign ownership, participation structures, or the design of tax consultancy-related companies, a proper classification of the current legal situation and the status of the proceedings may be indicated on a case-by-case basis. MTR Legal Attorneys support clients in classifying tax law issues in the business context. For more information, please visit: Legal Advice in Tax Law.
