Login or register (free and only takes a few minutes) to participate in this question.
You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.
16:51 Oct 20, 2006
German to English translations [PRO] Law/Patents - Finance (general)
German term or phrase:schädlich
if an action is said to be 'schädlich' in the context of a particular law, does this mean that it is 'schädlich' for the person doing it ie has harmful consequences for him/her, or does it mean that it is 'schädlich' to the law ie in violation of it/in conflict with it.
in either case, what do we say for this in English?
example re KStG debating whether certain methods of transferring shares invalidate various tax benefits otherwise available:
'Auch eine Übertragung von mehr als 50% in mehreren Schritten kann schädlich sein, sofern ein Gesamtkontext unterstellt werden kann.'
Explanation: Especially in tax contexts, the term of art is "harmful", or that a particular course of action is "tainted" (resulting in "tainting"). And yes, this means that it has adverse tax consequences for the fiscal entity (Steuersubjekt) in question.
I imagine the KSt context you're referring to here has to do with the tax treatment of intercompany loans with associated share transfers, upstream/downstream mergers, or plain-vanilla thin capitalisation, under what are known as the "anti-debt pushdown rules", or the "back-to-back financing rules".
Thanks Robin. I had noted that both Deloitte's and KPMG use 'harmful' but wasn't sure whether this was Denglisch. Context was transferability of loss carryforwards in mergers, btw. 4 KudoZ points were awarded for this answer