Federal Fiscal Court confirms its case law on the taxation of management participations

At the hearing on December 14, the 6th Senate of the Federal Fiscal Court once again made it clear that income from management shareholdings cannot simply be reclassified as wages. This also applies if the shareholding is acquired at a discount. If capital instruments are subscribed to disproportionately (sweet equity), this must also be recognized as a financing decision for taxation purposes if the price of the individual capital instruments corresponds to the market value.