Reorganisation tax law
and insolvency tax law

In the last years tax law issues centred around reorganisation measures, and insolvencies have developed into an independent area of specialisation. This is because an insolvency of a company is a massive turning point, which   only partially covers the regulations of the German Fiscal Code. In tax collection proceedings the principle “insolvency law breaks tax law” applies, resulting in a variety of  distortions that in turn leads to very complicated tax law issues that only arise when circumstances of reorganisation and insolvency come together.

Typical questions arising in this area are:

• Separating tax receivables from insolvency receivables and the multitude of payables
• Which tax claims can the tax authorities offset against possible refund claims?
• What special accounting treatment needs to be considered when preparing and auditing financial statements before, during and after an insolvency?
• What tax impacts do the reorganisation measures planned in the reorganisation concept have?
• How can legal representatives avoid being liable for tax liabilities?

Our experts have more than twenty years of experience in such issues concerning bookkeeping, accounting and tax law for reorganisation and insolvency cases.

Nexia consulting offerings are primarily directed to the persons or the Managing Directors in companies, who find themselves an in a reorganization process either before or after insolvency proceedings have been held. In addition, we intensively advise insolvency administrators and restructuring advisors in order to ensure that all legal requirements are met and that all economic procedures in the areas described are nevertheless performed.