Closer to Haven? New German Tax Planning Opportunities

Time and again, a decision of the German FederalTax Court (Bundesfinanzhof, or BFH)makes an international tax planner’s heart beatfaster. Such a cause for celebration occurred on May31, 2005, when the BFH repealed its strict view onthe German anti-treaty-shopping rule in the landmarkHilversum II decision. (For prior coverage, see‘‘German Tax Court Revamps Treaty ShoppingLaw,’’ Tax Notes Int’l, Oct. 10, 2005, p. 122, and‘‘German Tax Authorities Disregard Hilversum IIRuling,’’ Tax Notes Int’l, Feb. 27, 2006, p. 677.) Froma tax planner’s point of view, the decision createsmore legal security and additional planning opportunities.That’s good news for U.S. investors inEurope.[...]