Kategorie: Politics Law Society

Wirecard AG – Investigations on suspicion of market manipulation The Munich Public Prosecutor”s Office has conducted a search of Wirecard”s head office in Aschheim near Munich on suspicion of market manipulation. The raid that took place at Wirecard”s head office on June 5, 2020 appears to have been in response to a criminal charge lodged by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) – Germany”s Federal Financial Supervisory Authority – concerning ad-hoc announcements made by the company on March 12 and April 22 of this year. When considered in connection with a…

Scale of Wirecard AG accounting scandal grows The scale of the accounting scandal besetting Wirecard AG continues to grow. Wirecard”s running assumption is that 1.9 billion euros supposedly held in escrow accounts likely never existed. The company has experienced a dramatic drop in the value of its shares. Wirecard AG has been the subject of criticism due to accounting irregularities for some time now. Seeking to dispel doubts, the payment services provider had planned on presenting its annual and consolidated financial statements on June 18, 2020 following multiple delays. Yet…

BGH upholds trademark protection for square design In rulings from July 23, 2020, the Bundesgerichtshof (BGH) – Germany´s Federal Supreme Court – confirmed that three-dimensional forms, including the shape or packaging of goods, are capable of benefiting from trademark protection (Az.: I ZB 42/19 and I ZB 43/19). They can often be found close to each other on the supermarket shelves. One has a square design, the other has a rectangular shape. The producer of the square product had the shape of the packaging registered as a trademark, much to…

COVID-19 – Substandard Quality of Masks and Other Protective Equipment The coronavirus pandemic is not over. Respiratory masks and other protective gear remain vital. However, the issues of quality and outstanding invoices are also increasingly taking center stage. The global number of coronavirus infections continues to increase, with the number of people infected with COVID-19 rising once again in Germany. The Robert Koch Institute cites people”s failure to continue to sufficiently abide by social distancing and hygiene measures as the principal cause. Those returning from vacation were said to be…

COVID-19 & Protective Masks – Distributors Left With Outstanding Invoices People wearing protective masks have become a common sight since the outbreak of the coronavirus. Yet the quality of some of these masks and the outstanding invoices are becoming a source of frustration. Respiratory masks are among the measures that are meant to protect people from being infected with the coronavirus. It is now compulsory to wear the classic masks that cover the mouth and nose while shopping or traveling on public transport. These are designed first and foremost to…

BFH: Interest on the deferral of compensation for forgoing the statutory share subject to taxation In the event that an heir waives their right to the statutory share in the estate and opts to defer claiming compensation, the deferral interest is subject to income tax. That was the verdict of the Bundesfinanzhof, Germany”s Federal Fiscal Court (Az.: VIII R 22/17). It is not uncommon for claims to the statutory share in an estate to be waived, particularly if the spouses mutually appoint each other as sole heirs in their will…

FG München: Stock splitting does not give rise to capital gains tax Investors who acquire new shares in the course of a corporate spin-off are not required to pay withholding tax on this. That was the verdict of the Finanzgericht (FG) München, the Fiscal Court of Munich (Az.: 8 K 981/17). Whether shareholders have to pay withholding tax in response to a stock split is a contentious legal issue. In a judgment from December 19, 2019, the Finanzgericht München has now ruled that investors do not need to pay withholding…