Current Developments in the Taxation of Private Equity / Venture Capital Funds Financial Yearbook 2022

Πάντα ῥεῖ – Everything flows!, was our introductory statement in the FYB Financial Yearbook 2020. The starting point was the fact that the taxation of private equity funds, or rather of the limited partners of private equity funds taxable in Germany had increasingly moved into the centre of attention of the fiscal authorities. At that time, very remarkable and landmark decisions had been issued by fiscal courts, including Germany’s highest fiscal court, the Federal Fiscal Court (Bundesfinanzhof). Today – two years later – we are no longer so sure whether really Everything flows. Some things do not flow at all, which is tantamount to a standstill in the administration of justice – other things flow in the absolute wrong direction.