1. Introduction
In the business world, corporations and their shareholders are often faced with complex tax challenges.
One of these challenges is hidden profit distribution (vGA), which can have significant tax consequences. The tax office has the right to subsequently determine such vGAs as part of tax audits, which can lead to unexpected tax back payments and possible penalties.
It is therefore crucial for companies and shareholders to act proactively and take measures to minimize the risk of a subsequent discovery of a VGA. This article highlights some of the most effective measures companies can take to avoid such unwanted surprises.
2. 8 measures to avoid unwanted hidden distribution of profits
To avoid a hidden distribution of profits, the following points should be taken into account in particular:
1. Compensation in line with the market: One of the most common reasons for a vGA is the excessive remuneration of a shareholder or a third party close to him. It is therefore important that salaries, royalties, loan interest and other remuneration are in line with the market. A comparison with industry-standard remuneration can be helpful here.
2. Documentation of business transactions: All business transactions between the GmbH and its shareholders should be recorded and documented in writing. This applies in particular to loan agreements, rental agreements or service agreements. In case of doubt, clear documentation can serve as evidence to the tax office.
3. Avoid mixing business and privacy: Business and private transactions should always be treated separately. Private withdrawals or deposits must be clearly identified and recorded as such.
4. Waiver of non-business expenses: Expenses that are not operational should not be billed to the company. This applies in particular to private trips, luxury goods or other purchases that are not necessary for business operations.
5. Repayment of shareholder loans: If a shareholder is granted a loan, care should be taken to ensure that it is repaid within a reasonable period of time. In addition, standard market interest rates should be agreed.
6. Compliance with corporate law formalities: Decisions concerning the distribution of profits should always be in accordance with the partnership agreement and legal regulations. This also includes the proper calling and holding of shareholder meetings.
7. Regular tax advice: In order to stay up to date with the latest case law and legislation, it is advisable to regularly seek tax advice. A tax advisor can help identify potential risks at an early stage and take appropriate measures.
8. Transparency towards the tax office: If anything is unclear or you have any doubts, it may make sense to proactively seek a conversation with the responsible tax office. Open communication can help clear up any potential misunderstandings.
3. Conclusion
The subsequent determination of a hidden profit distribution by the tax office can be costly for companies and their shareholders, both financially and reputationally.
It is therefore essential to act proactively and be aware of the potential risks. By implementing clear guidelines, regularly reviewing business transactions and working closely with tax experts, companies can significantly reduce the risk of a subsequent discovery.
It is always better to be prepared in advance and identify potential pitfalls than to face the consequences later.
With proper planning and caution, businesses can ensure they are operating in compliance with tax regulations and avoiding unwanted surprises.
This article does not represent specific and individual legal advice, but rather only provides a rough initial overview of the very complex legal matter described. You can only obtain legal certainty for your specific case constellation through coordinated examination and advice from an expert lawyer.
I would be happy to assist you as a lawyer and specialist lawyer for a legal assessment and assessment of your case and represent your interests assertively and resolutely. the tax authorities and the tax investigation. Please feel free to contact me by phone or write to me.
I advise nationwide on site or via Zoom as a specialist lawyer in the legal areas of corporate law, tax law, insolvency law and capital market law, including in the cities and metropolitan areas around Stuttgart, Heilbronn, Karlsruhe, Freiburg, Ulm, Augsburg, Munich, Frankfurt, Wiesbaden, Saarbrücken, Kaiserslautern, Bonn, Wuppertal, Duisburg, Nuremberg, Münster, Saarbrücken, Düsseldorf, Cologne, Dortmund, Hanover, Kassel, Leipzig, Dresden, Bremen, Hamburg and Berlin.
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