German legislator finally introduces tax exemption for income resulting from debt waivers in restructuring scenarios with retroactive effect.
Germany, Insolvency & Restructuring, Tax, Latham & Watkins LLP, Tax exemption, Debtor, Waiver, Limited liability partnership
In a recent decision by the influential Third Circuit Court of Appeals, In re KB Toys Inc., 2013 U.S. App. LEXIS 23083 at *17 (3d Cir. Nov. 15, 2013), the Court decided that “the cloud on the claim” stemming from a preferential payment made to the original claimant continues with the claim, which then could be disallowed.