An operating split arises if there is a material and personal connection between the operating assets of a GmbH and the private assets of the shareholder behind it. The dissolution of the division of operations is particularly problematic, because it sometimes leads to the taxation of all hidden reserves “slumbering” in the GmbH. We show four possibilities with which the division of operations can be neutralized without tax consequences!
With the division of operations, the BFH has developed, among other things with judgment of 17.11.2020, I R 72/16, a tax institute not found in the income or corporate tax law. An operating split exists if a limited liability company and the respective shareholder have, on the one hand, a material and, on the other hand, a personal connection. These requirements are met in the following cases (R and H 15.7, paragraphs 4 to 8 EStH):
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.