Taxes in Bankruptcy

Particularly in the area of value-added tax, developments in case law and the interplay between tax law and insolvency law present challenges for parties involved in insolvency proceedings.

As a result, professional creditors in insolvency proceedings expect security against their own tax-related risks arising from their involvement, which places a significant strain on liquidity precisely when it is most urgently needed. Furthermore, errors in handling purported ongoing business transactions, such as the settlement of proceeds from collateral with creditors, can quickly result in harm to the estate.

Therefore, appropriate legal advice is essential when addressing tax law issues in order to avoid significant damage to the estate.

Aderhold provides expert assistance in handling all tax-related aspects of insolvency proceedings in close coordination with the relevant tax authority. For specific special issues regarding insolvency tax law, Aderhold relieves the insolvency administrator or the self-administering management of liability by preparing a tax opinion.