On 8 November 2007, the Lower House of the German Parliament adopted the Draft Bill for an Annual Tax Act initially adopted by the Federal Cabinet on 8 August 2007 with minor changes.
Anti-abuse rule
Sec. 42 of the General Tax Act (GTA) shall be applicable if an inappropriate (previously:unusual) legal structure is chosen that leads to a tax advantage for which the taxpayer cannot provide significant non-tax reasons. A legal structure is considered inappropriate if …