· Insight

On the interest rate on shareholder loans: Why the third-party comparison is not a bank comparison

Original: “Zur Verzinsung von Gesellschafterdarlehen: Warum der Drittvergleich kein Bankvergleich ist”

When it comes to calculating interest on loans at arm’s length, the tax authorities regularly base their calculations on fully secured bank loans with priority servicing. The Federal Fiscal Court has now clearly contradicted this practice and thus clarified that a third-party comparison is not a bank comparison. This decision therefore removes any basis for the previous argumentation of the tax authorities.

in: Handelsblatt online, Steuerboard, November 17, 2021
Authors: Gerald Herrmann
  • Tax
    • Corporate Tax Law