KESt prescription for concealed profit distribution

Hidden profit distributions are generally subject to the 25%-year Capital gains tax (KESt) and are therefore open Payouts are treated as income for tax purposes. In practice, the existence of a hidden profit distribution is often only discovered during an audit. Business audit determined, so that in addition to other tax consequences, there is also a Requirement of the KESt It's coming. In Past went the Financial administration from one of them Discretionary scope Whether the KESt is a company that is required to pay taxes or dem Recipient the hidden profit distribution required It will happen. In the Practice was the KESt almost involved in this? exclusively The entity subject to withholding tax (Society) requires it.

Due to previously issued BFG decisions This long-standing relationship was established in March 2015 Administrative practice in that regard changed, that in the case of concealed profit distributions, the KESt no longer the person liable for the withdrawal (the entity) but the Beneficiaries of the covert profit distribution primarily required It will happen. Now the Supreme Administrative Court against of this new MFB view however, decided that the procedure in case of old cases, in which the KESt Primarily The distributing company by a liability order required was done, Permitted is (GZ Ro 2014/15/0046 of 28.5.2015). Thereby the Discretionary scope of the financial administration, which in the past regularly led to the imposition of the KESt on the entity liable to pay it, confirmed.

One legal clarification This is done by amending § 95, paragraph 4 of the EStG as part of the Tax reform law 2015Accordingly, the KESt for one hidden profit distribution dem Recipient the capital gains only prescribed directly in exceptional cases And that is when Liability the company liable to deduction not enforceable is (abolition of the company) or only made more difficult to enforce is (in the case of an insolvent company). Thus, as before, the general rule applies Primary liability of the withdrawing company.

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