Estimate after unclear origin of funds at the shareholder

Missing information on the origin of cash amounts at the shareholder's does not entitle the tax office to an additional estimate at the company even if the funds are used for a hidden cash contribution.

Hidden cash contributions cannot lead to an additional assessment of a corporation's operating income simply because the shareholder is unable to clarify the origin of the funds. The Münster Tax Court thus sided with a shareholder who was unable to clarify the origin of the funds used for cash contributions to the satisfaction of the tax office. Even if the shareholder's conduct in the case in question was not beyond all doubt, the fact that the shareholder did not clarify the origin of the unexplained capital gains ascertained in his case cannot lead to any disadvantageous conclusions for the corporation, according to the tax court.