07/23/2017

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International Tax Law - Company Formation Abroad Advantages of incorporation in the EU company formation abroad: benefits of incorporation in the EU, EU based 1 premises concept, design abuse it does as a parent right the EU freedom of establishment or judgments of the European Court of Justice on the freedom of establishment. No company is the existence of a proper foundation of a company under the law of the Member State, no matter what business the company has and no matter whether she actually does this (permitted or not permitted) business. In any case a lump-sum non-recognition does not take place. Accordingly, the existence of a licence society by the case-law of the BFH therefore only in exceptional cases is assumed (Prof. Dr. Thomas Reith, international tax law, Verlag Vahlen, page 71; Federal fiscal judgment of the 23.06.1992,BStBl 1992 II p. 972). The EU freedom of establishment allows even the targeted exploitation of the tax gap through establishment of EU - foreign companies (Ruling Cadburry Schweppes), only minimal substance within the meaning of more than a mere letter box is required. "The opposite: DBA facts" (double taxation agreement), non-EU: usually is to assume that a business established in commercial manner in the country of domicile of the subsidiary is required the adoption of design abuse (= intermediate society, which only serves the purpose that illegally to circumvent domestic taxation law) to prevent. "Non-DBA facts of the case": business established in...

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