Insight
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Insight
„Sweet Equity“: Federal Fiscal Court does not consider disproportionate opportunity for return on management participation alone to be an indication of wages and salaries
“Sweet equity” is a typical design feature of management participations. In two decisions published on May 27, 2021, the Federal Fiscal Court ruled that the resulting opportunity for a disproportionate return - compared to the private equity investor involved - does not justify the taxation of a capital gain, in particular as wages. Barbara Koch-Schulte and Michael de Toma will discuss the latest Federal Fiscal Court case law and bring you up to date with the latest findings on “sweet equity”.
in: Betriebs-Berater, 48/2021, November 29, 2021, 2839-2844
