Interest on Private Shareholder Loans - Legal Certainty at Last?

Discussions about the “arm’s length interest rate’ in the case of private loans granted by corporations to their shareholders are a perennial issue in the context of tax audits. In a recent Steuerboard article, Christian Kempges explains the guidelines for determining the “arm’s length interest rate” in these cases on the basis of a recent Federal Fiscal Court (BFH) decision.