EU/EEA family foundations: Declaration and notification obligations and the application of the rules on add-back taxation in the context of the escape clause

Many German founders and beneficiaries of foreign family foundations are unsure whether tax obligations are being met in full. Despite the so-called escape clause for foreign family foundations within the EU or EEA, they must fulfill declaration and disclosure obligations. Early clarification with the tax authorities and the disclosure of relevant documents are crucial in order to avoid tax risks.