Glossary entry (derived from question below)
German term or phrase:
verdeckte Einlage
English translation:
constructive (equity) contribution
Added to glossary by
Emma Gledhill
Feb 5, 2009 21:07
15 yrs ago
2 viewers *
German term
Switzerland
The communications specialist
Native in: English (Variants: UK, British) 
Works in: German to English, Dutch to English, French to English, and 1 more.
verdeckte Einlage
German to English
Bus/Financial
Law: Taxation & Customs
Wikipedia gives a nice, comprehensive article about this:
http://de.wikipedia.org/wiki/Verdeckte_Einlage
but I'm urgently looking for an English translation (official or otherwise) for the term, usual searches proving fruitless. Any help gratefully received! TIA
http://de.wikipedia.org/wiki/Verdeckte_Einlage
but I'm urgently looking for an English translation (official or otherwise) for the term, usual searches proving fruitless. Any help gratefully received! TIA
Proposed translations
(English)
| 4 +2 | constructive (equity) contribution |
RobinB
|
| 3 +1 | hidden capital contribution |
Kim Metzger
|
Proposed translations
+2
43 mins
Selected
constructive (equity) contribution
Kim's source may be an EU document, but somehow it looks like a rather simplistic translation to me.
The "verdeckte Einlage" is the counterpart to the "verdeckte (Gewinn-)Ausschüttung", or "constructive dividend".
Most sources give "constructive contribution" for this, including:
http://www.ey.com/Global/Assets.nsf/Luxembourg_E/EU_Tax_News...$file/EU%20TaxNews%20Jan-Feb%202007.pdf
http://www.internationaltaxreview.com/Default.asp?Page=10&PU...
http://books.google.de/books?id=uRk9ECvOZvYC&pg=PA348&lpg=PA...
http://books.google.de/books?id=j8nftGSrKcEC&pg=RA1-PA358&lp...
A few give "constructive equity contribution", e.g.
http://www.hmrc.gov.uk/bulletins/tb25.htm
but we've always used simply "constructive contribution" in all our tax-related work.
The "verdeckte Einlage" is the counterpart to the "verdeckte (Gewinn-)Ausschüttung", or "constructive dividend".
Most sources give "constructive contribution" for this, including:
http://www.ey.com/Global/Assets.nsf/Luxembourg_E/EU_Tax_News...$file/EU%20TaxNews%20Jan-Feb%202007.pdf
http://www.internationaltaxreview.com/Default.asp?Page=10&PU...
http://books.google.de/books?id=uRk9ECvOZvYC&pg=PA348&lpg=PA...
http://books.google.de/books?id=j8nftGSrKcEC&pg=RA1-PA358&lp...
A few give "constructive equity contribution", e.g.
http://www.hmrc.gov.uk/bulletins/tb25.htm
but we've always used simply "constructive contribution" in all our tax-related work.
4 KudoZ points awarded for this answer.
Comment: "Thanks, I went for Robin's answer in the end, partly down to his comprehensive corroboration and partly because I wanted to avoid even the slightest hint of concealment/underhandedness for a transaction that was clearly within the law. The context also suggested a nuance of "de facto" rather than hidden imv. Client also happy, which is always a bonus :-)"
+1
4 mins
Kim Metzger
Mexico
Mexico
Native in English
Mexico
Committed to Quality and Service
Native in: English (Variant: US) 
Works in: German to English
Related KudoZ points
:
161
hidden capital contribution
PDF] GERMANYFile Format: PDF/Adobe Acrobat - View as HTML
Hidden capital contributions. The rules governing hidden capital contributions (verdeckte Einlage) are found in Sec. 4(1) of ...
ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/IR_dir_de.pdf
--------------------------------------------------
Note added at 11 mins (2009-02-05 21:18:57 GMT)
--------------------------------------------------
Hidden capital contributions
The rules governing hidden capital contributions (verdeckte Einlage) are found in Sec. 4(1) of
the ITL in conjunction with Sec. 8(1) of the CITL. A hidden capital contribution can be
assumed if a shareholder or a related party of the shareholder makes a contribution to the
corporation without proper consideration and the reason for this contribution can only be
found in the shareholder relationship. This is the case if a third party (a non-shareholder) - by
applying sound business principles - would not have agreed to the conditions of the
transaction if he had dealt with the company.
http://ec.europa.eu/taxation_customs/resources/documents/com...
Hidden capital contributions. The rules governing hidden capital contributions (verdeckte Einlage) are found in Sec. 4(1) of ...
ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/IR_dir_de.pdf
--------------------------------------------------
Note added at 11 mins (2009-02-05 21:18:57 GMT)
--------------------------------------------------
Hidden capital contributions
The rules governing hidden capital contributions (verdeckte Einlage) are found in Sec. 4(1) of
the ITL in conjunction with Sec. 8(1) of the CITL. A hidden capital contribution can be
assumed if a shareholder or a related party of the shareholder makes a contribution to the
corporation without proper consideration and the reason for this contribution can only be
found in the shareholder relationship. This is the case if a third party (a non-shareholder) - by
applying sound business principles - would not have agreed to the conditions of the
transaction if he had dealt with the company.
http://ec.europa.eu/taxation_customs/resources/documents/com...
Peer comment(s):
| agree |
wfarkas (X)
: Bravo ! Hot topic in the context of transfer pricing/thin capitalization.
1 hr
|
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