The German Corporate Tax Reform 2008 was strongly criticized for its accelerating effect on the financial downturn of the German economy. The provisions introduced under the interest barrier and the limitations in using loss carry-forwards often-forced businesses to pay taxes when in fact no profits were earned. The new coalition took it as one of its first missions to introduce relief from these detrimental effects of the 2008 reform. As a result, the interest barrier was eased in its impact on smaller businesses and restructuring privileges were introduced to limit the tax detriments for economically necessary measures to battle the changing macroeconomic environment.
Intertax