Consolidated tax group: Cure against will? - On the Tax Recognition of “Defective” Profit and Loss Transfer Agreements

The Federal Fiscal Court (ruling dated May 3, 2023 - I R 7/20) recently had to deal with the question of whether a defective profit and loss transfer agreement in the years in dispute is cured ipso iure or depending on the declared will of the taxpayer. In deviation from the lower court, the Federal Fiscal Court (BFH) interpreted the provisions in dispute in the sense of procedural simplification, taking into account in particular the manifested will of the taxpayer. In short: No cure against will!