Editorial

Dear Readers,

The initial focus here is on a new Federal Ministry of Finance circular on cross-border activities that admittedly contains an important simplification rule on the costs borne; however, it leaves the even more important question of residency unresolved. In our second report in the Tax section, there is a closer examination of usufruct as a structuring instrument that allows business owners to transfer assets early enough during their lifetimes and, at the same time, still ensure that they are provided for. Here, in this edition of our magazine, we take a look at a sole proprietor and, in the next issue, at a partner. Subsequently, we discuss how and under what conditions an exemption certificate can make it possible for private individuals and also companies to avoid paying capital gains tax in order to prevent liquidity outflows.

The Key Issue report for this February edition of our magazine appears under the Accounting and Finance section. More and more companies are using IT hardware and software under a service contract without having to own them. This raises questions regarding the capitalisation of the costs for setting up the IT infrastructure that are the subject of controversial debate in case law and in the specialist literature.

We carry on with the digital theme in our Legal section, too. Our lives are increasingly taking place online and one question that arises in this respect is: what happens to our so-called footprint when life ends? We provide practical tips for this legally unresolved issue if the worst comes to worst.

Short reports on the topics of the family home, the correction of invoices and input tax deduction as well as the partial recognition of revenues round off our varied range of subjects.

You can look forward to an interesting read. 
Your PKF-Team