A key feature of company valuation in family and inheritance law is that in most cases it involves a property dispute between natural persons. As a result, in addition to company shares, other assets of natural persons must regularly be taken into account.
In order to determine the specific compensation or settlement claims, the tax consequences associated with a fictitious sale of the company or the tax consequences associated with the division of inheritance in accordance with IDW S 13 must be taken into account individually. In IDW S 13, the FAUB also expresses that valuation in family and inheritance law is regularly a valuation calculation based on personal taxes. In addition to the personal tax effects associated with the valuation of a company, the personal tax effects that arise in connection with other assets must therefore also be taken into account.
In the event that there is not enough cash available to pay the compensation or settlement payments, it may be necessary to obtain financing. However, the costs associated with financing must not diminish the value of the appraisal object in question.
With regard to the treatment of income tax effects, IDW S 13 is based on the case law of the Federal Court of Justice. As part of the company valuation to determine the compensation claim in cases of gain compensation, the fiction of the sale of the assets to be valued must be assumed regardless of whether a sale is to take place.
If the (fictitious) sale results in a depreciation-related tax advantage, a so-called tax amortization benefit, this must be taken into account to increase the value. In order to maintain methodological consistency, this applies to both initial and final assets. In this context, IDW S 13 expresses the value relevance of future tax burdens in the context of company valuations. Depending on actual circumstances, the impact of deferred tax effects on the value is sometimes enormous.
This also shows the character of IDW S13 as a specification of IDW S1. The previously mentioned deferred income tax effects arise at the level of the fictitious acquirer and in connection with the imputed fiction of sale, but not in the valuation object itself.
According to IDW S 13, when determining an objectified company value, the personal circumstances of the shareholder must be typified. Contractual regulations are therefore not to be included when determining an objectified company value. Contractually defined restrictions on disposal can only be taken into account in individual cases for the purpose of subjective valuation.
By way of derogation from the principle, the lower severance payment claim stipulated in the articles of association may have to be set if the termination of the business relationship had already been effective on the valuation date. According to IDW S 13, share-related disposal restrictions include substandard severance payment clauses, corporate law, contractual or de facto distribution and withdrawal restrictions, vinculation clauses and sale blocks, as well as pool contracts.
IDW S 13 points out that the initial and final assets must be determined on the same price basis when determining the gain compensation. This means that the calculated value on the reporting date of the initial assets must be converted in a further step to the price base on the reporting date of the final assets.
In this context, IDW S 13 refers to the case law of the Federal Court of Justice, according to which a conversion must be carried out using the cost of living index. The Federal Statistical Office's Price Index for Living, which the Federal Statistical Office regularly makes freely available on its website, is suitable for conversion.
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