Editorial

Dear Readers,

In many companies there are frequently structural changes, for example, following acquisitions. In the course of this, the reporting must be adapted to the new structure for which no historical data will be available. In this respect, in the Key Issue report in this June edition of our magazine, we introduce comparable reporting as an approach according to which historical data can be prepared for a new structure. In this June edition, we discuss the principles that can ensure that there are consistent metrics and meaningful time series even where the organisational structures and segments have changed. In the next edition of our magazine, we will follow this up with a practical example.

In our first report in the Legal section, we define occasional gifts and classify them for tax purposes. We recently reported on a ruling according to which an amount of €20,000 that was given as a gift on the occasion of Easter was taxable. Subsequently, the question that arises here is what should the local tax office be notified of in such a case and whether something else should apply if, for instance, a valuable watch has been given as a present instead. Next up, we discuss an amendment to VAT legislation that initially seems advantageous because VAT-exempt educational services will now be considerably expanded. However, upon closer examination, the tax disadvantages and risks tend to predominate.

In the Accounting & Finance section - besides the aforementioned report on comparable accounting - we turn once more to the topic artificial intelligence (AI). The focus here is on M&A and the question of how transaction processes are transformed by the use of AI.

In the Legal section we consider the problems that can be encountered by a community of heirs when administering an estate. After a brief introduction to the concept of a community of heirs, useful suggestions for greater harmony are subsequently provided. Furthermore, we discuss in detail a completely new legal form, namely, the EU Inc.; this is a corporation on which all Member States have agreed. It can be formed easily, digitally and without a large capital investment and will be recognised in each EU country. Although, in view of the low regulatory depth, there are a number of issues that must be given urgent consideration.

Our short reports include, first of all, a note on the increased risks under the criminal law on fiscal offences with respect to errors in preliminary VAT returns; the focus then shifts to a positive development with regard to the crediting of foreign tax against trade tax, as well as, once again, a note on what you should take into account so that a tax group can still be recognised by the tax authorities.

We wish you an interesting read. 
Your PKF Team