MONTRANUS
The fund companies Montranus I, II and III have already been economically terminated.
Below you will find the relevant current information on the tax assessment of your respective fund company.
Please understand that we are not permitted to provide tax advice.
If you have any tax-related questions, please contact your personal tax advisor.
MONTRANUS Beteiligungs GmbH & Co. Verwaltungs KG i.L.
Hannover Leasing Fund No. 143
Film projects: "The Interpreter" and "The Bourne Supremacy"
Year of issue 2003
Forecast period: 2003 - 2013
Economic situation of the fund:
- The put options relating to both film projects were exercised in December 2013 and the films were sold. The final payment was made in 2013.
- The closing liquidation balance sheet was prepared as at December 31, 2016.
Tax situation of the fund:
The initial tax losses in 2003 were recognized in full and corresponding amendment notices have been issued.
As you know from various investor information letters, legal proceedings are pending in a settlement case to defend against the linearization of the final payment. The Munich tax court confirmed the linearization of the tax authorities on the merits and dismissed the action in its entirety on 17.05.2023 without allowing an appeal. The proceedings have not yet been concluded due to the appeal against denial of leave to appeal lodged with the BFH by the other fund company bringing the action.
In August 2018, a majority of the shareholders decided to no longer pursue a lawsuit or appeal against the linearization. The processing of appeals against the existing profit assessment notices of the fund company from 2004 to 2012 to defend against linearization will therefore be discontinued. No further appeals will be lodged against profit assessment notices for other years with regard to linearization.
The assessment years 2004 to 2012 were audited by the tax office. The main change was the recognition of the profit-increasing linearization of the final payment.
An objection was lodged against the amended assessment notices following the tax audit due to the application of linearization and a suspension of the proceedings was requested. As long as the tax authorities allow the proceedings to be suspended, the assessments from 2004 to 2012 will remain amendable. As far as we know today, all assessments will become final at the latest after the current tax audit has been completed.
An objection was lodged against the first assessment of the 2013 profit assessment notice dated 24.05.2023. The tax office followed PKF's request with an amendment notice dated 17.08.2023 and will inform your local tax office accordingly. Please refer to Annex 2 of PKF's letter dated September 2023 for the taxable profit share for 2013.
Currently, the first assessments for the assessment years 2014 to 2016 have been made. The timing of the preparation of tax assessments is exclusively within the sphere of influence of the tax authorities. To the best of our knowledge, the assessment was carried out in accordance with the tax returns submitted.
It should be noted that the company's tax number has changed since the 2013 results announcements. MONTRANUS Beteiligungs GmbH & Co. Verwaltungs KG i.L. was then registered under tax number 145/245/30407 (Munich tax office department II/III). The notices dated 24.05.2023 and 17.08.2023 have now been issued under tax number 143/549/30308 (Munich tax office).
Example: 100,000 Euro deposit in 2003:
Own funds: 56,000 euros
External funds: 44,000 euros
Initial tax losses in 2003
| Date | Use |
Amount in € |
| 27.06.2005 | Distribution 2004 |
638,30 |
| 13.12.2005 | Distribution 2005 |
14.502,45 |
| 28.12.2006 | Distribution 2006 |
4.732,02 |
| 27.12.2007 | Distribution 2007 |
1.277,65 |
| 29.04.2008 | Subsequent distribution 2007 |
1.230,32 |
| 23.12.2008 | Distribution 2008 1st tranche |
2.271,37 |
| 11.05.2009 | Distribution 2008 2nd tranche |
946,40 |
| 30.12.2009 | Distribution 2009 1st tranche |
946,85 |
| 03.05.2010 | Distribution 2009 2nd tranche |
946,96 |
| 30.12.2010 | Distribution 2010 1st tranche |
946,96 |
| 11.05.2011 | Distribution 2010 2nd tranche |
473,48 |
| 04.06.2012 | Distribution 2011 |
402,70 |
| 02.07.2013 | Distribution 2012 |
947,52 |
| 28.01.2014 | Final payment 1st tranche in 2014 |
14.214,89 |
| 09.02.2015 | Final payment 2nd tranche in 2015 |
2.274,38 |
| 18.12.2018 | Final payment 3rd tranche |
270,08 |
| Total |
47.022,48 |
MONTRANUS Zweite Beteiligungs GmbH & Co. Verwaltungs KG i.L.
Hannover Leasing Fund No. 158
Film projects: "Miami Vice" and "Jarhead"
Year of issue 2004
Forecast period: 2004 - 2014
Economic situation of the fund:
Variable license income and thus payouts are significantly below the mid-case scenario over the entire term of the fund.
- The put options relating to both film projects were exercised in accordance with the resolution and the film rights were sold at the end of 2014. In the first half of 2015, two distribution tranches totaling EUR 16.5 million were paid out for the 2014 financial year (updated forecast: around EUR 16.8 million).
- At the end of 2015, a settlement was reached with Universal regarding disputed audit items, as a result of which a further USD 3.1 million was collected. This additional income was paid out at the beginning of 2016 following a same-day exchange of around EUR 2.8 million in accordance with the prospectus.
- The closing liquidation balance sheet was prepared as at December 31, 2017.
- The closing liquidation balance sheets of the two production companies Motion Picture ETA Produktionsgesellschaft mbH & Co. KG i.L. and Motion Picture KAPPA Produktionsgesellschaft mbH & Co. KG i.L. were already prepared as at December 31, 2016.
Tax situation of the fund:
The initial tax losses in 2004 were recognized in full and corresponding amendment notices have been issued.
As you know from various investor information letters, legal proceedings are pending in a settlement case to defend against the linearization of the final payment. The Munich tax court confirmed the linearization of the tax authorities on the merits and dismissed the action in its entirety on 17.05.2023 without allowing an appeal. The proceedings have not yet been concluded due to the appeal against denial of leave to appeal lodged with the BFH by the other fund company bringing the action.
In August 2018, a majority of the shareholders decided to no longer pursue a lawsuit or appeal against the linearization. The processing of appeals against the existing profit assessment notices of the fund company from 2005 to 2012 to defend against linearization will therefore be discontinued. No further appeals will be lodged against profit assessment notices for other years with regard to linearization.
The assessment years 2005 to 2012 were audited by the tax office. The main change was the recognition of the profit-increasing linearization of the final payment. An objection was lodged against the amended assessment notices following the tax audit due to the application of linearization and a suspension of the proceedings was requested.
A profit assessment notice without linearization has been issued for the 2013 assessment year, which still needs to be corrected. You will then be notified of the corrected 2013 profit share with linearization. As long as the tax authorities allow the proceedings to be suspended, the assessments from 2005 to 2012 will remain amendable. As far as we know today, all assessments will become final at the latest once the current tax audit has been completed.
Currently, the first assessments for the assessment years 2014 to 2016 have been made. The timing of the preparation of tax assessments is exclusively within the sphere of influence of the tax authorities. To the best of our knowledge, the assessment was carried out in accordance with the tax returns submitted.
It should be noted that the company's tax number has changed since the 2013 results announcements. MONTRANUS Zweite Beteiligungs GmbH & Co. Verwaltungs KG i.L. was registered at the time under tax number 145/245/30423 (Munich tax office department II/III). The decision dated 24.05.2023 has now been issued under the tax number 143/549/30324 (Munich tax office).
Example 100,000 Euro deposit in 2004:
Own funds: 53,200 euros
External funds: 46,800 euros
Initial tax losses in 2004
| Date | Use |
Amount in € |
| 23.12.2005 | Distribution 2005 |
206,33 |
| 31.12.2006 | Distribution 2006 |
2.352,16 |
| 20.07.2007 | Distribution 2007 Advance distribution |
2.187,10 |
| 27.12.2007 | Distribution 2007 1st tranche |
1.691,91 |
| 29.04.2008 | Distribution 2007 2nd tranche |
2.145,83 |
| 11.05.2009 | Distribution 2008 |
825,32 |
| 30.12.2009 | Distribution 2009 1st tranche |
660,26 |
| 03.05.2010 | Distribution 2009 2nd tranche |
412,75 |
| 04.06.2012 | Distribution 2011 |
268,69 |
| 28.12.2012 | Distribution 2012 |
248,03 |
| 30.12.2013 | Distribution 2013 |
289,45 |
| 16.02.2015 | Final payment 1st tranche |
5.792,30 |
| 08.06.2015 | Final payment 2nd tranche |
1.034,34 |
| 08.02.2016 | Distribution of the settlement payment |
1.159,54 |
| 17.12.2018 | Final payment 3rd tranche |
269,18 |
| Total |
19.543,19 |
MONTRANUS Dritte Beteiligungs GmbH & Co. Verwaltungs KG i.L
Hannover Leasing Fund No. 166
Film projects: "Mr. Bean's Holiday", "Elisabeth - The Golden Age" and "The Bourne Ultimatum"
Year of issue: 2005
Forecast period: 2005 - 2015
Economic situation of the fund:
- Variable license income and therefore distributions are significantly below mid-case scenario - The production companies exercised the put options in accordance with the shareholder resolution of 27.10.2015 and sold the film rights to Universal Studios B.V. on 23.12.2015.
- The closing liquidation balance sheet of MONTRANUS Dritte Beteiligungs GmbH & Co. Verwaltungs KG i.L. (Hannover Leasing Fund No. 166) was prepared as at December 31, 2020. The closing liquidation balance sheets of the production companies were prepared as at December 31, 2017.
Tax situation of the fund:
The initial tax losses in 2005 were recognized in full and corresponding amendment notices have been issued.
As you know from various investor information letters, legal proceedings are pending in a settlement case to defend against the linearization of the final payment. The Munich tax court confirmed the linearization of the tax authorities on the merits and dismissed the action in its entirety on 17.05.2023 without allowing an appeal. The proceedings have not yet been concluded due to the appeal against denial of leave to appeal lodged with the BFH by the other fund company bringing the action.
In December 2020, a majority of the shareholders decided to no longer pursue a lawsuit or appeal against the linearization. The processing of appeals against the existing profit assessment notices of the fund company from 2006 to 2012 to defend against linearization will therefore be discontinued. No further appeals will be lodged against profit assessment notices for other years with regard to linearization.
The assessment years 2006 to 2012 were audited by the tax office. The main change was the recognition of the profit-increasing linearization of the final payment from 2007 onwards. An objection was lodged against the amended assessment notices following the tax audit due to the recognition of the linearization and a suspension of the proceedings was requested.
A profit assessment notice without linearization has been issued for the 2013 assessment year, which still needs to be corrected. You will then be notified of the corrected 2013 profit share with linearization.
As long as the tax authorities allow the proceedings to be suspended, the notices from 2007 to 2012 will remain amendable. According to current knowledge, all notices will become final at the latest after the end of the current tax audit.
Currently, the first assessments for the assessment years 2014 to 2016 have been made. The timing of the preparation of tax assessments is exclusively within the sphere of influence of the tax authorities. To the best of our knowledge, the assessment was carried out in accordance with the tax returns submitted.
It should be noted that the company's tax number has changed since the 2013 results announcements. MONTRANUS Dritte Beteiligungs GmbH & Co. Verwaltungs KG i.L. was listed under the tax number 145/245/30415 (Munich tax office department II/III). The assessment dated 24.05.2023 has now been issued under tax number 143/549/30316 (Munich tax office).
Example: 100,000 Euro deposit in 2005:
Own funds: 51,200 euros
External funds: 48,800 euros
Initial tax losses in 2005
| Date | Use |
Amount in € |
| 31.01.2008 | Distribution January 2008 |
2.941,93 |
| 29.04.2008 | Distribution April 2008 |
1.836,84 |
| 23.12.2008 | Distribution December 2008 |
11.946,93 |
| 11.05.2009 | Distribution May 2009 |
3.982,31 |
| 28.12.2009 | Distribution December 2009 |
1.991,16 |
| 10.05.2010 | Distribution May 2010 |
1.115,16 |
| 29.12.2010 | Distribution December 2010 |
1.196,12 |
| 12.05.2011 | Distribution May 2011 |
219,31 |
| 06.02.2015 | Distribution January 2015 |
1.460,17 |
| 08.02.2016 | Final payment 1st tranche |
5.402,80 |
| 13.04.2017 | Final payment 2nd tranche |
262,54 |
| 22.03.2021 | Final payment 3rd tranche |
344,18 |
| Total |
32.699,45 |
FAQs
Due to the originally disputed legal situation regarding the recognition of start-up losses from film production and subsequently the question of linearization of the final payment, the tax office of the fund company ordered a freeze on assessments. Only after repeated applications by the tax advisor did the tax office begin to issue profit assessment notices (basic assessment notices) for the assessment years from 2014 onwards in mid-2024.
Because the shareholders did not declare the taxable investment income communicated by the tax advisor in the income tax return or did not notify the tax office of their place of residence outside of the tax return, although this was pointed out in the annual results notifications. If, in exceptional cases, the tax office of residence did not make a corresponding assessment despite the investment income being reported, the shareholder could have lodged an objection or applied for a voluntary adjustment of the tax payments for the relevant assessment year.
The tax office at the place of residence was not able to take the investment income into account according to the usual internal notification at tax office level because the tax office at the place of residence did not have any internal notifications due to the freeze on assessment by the permanent establishment tax office.
If the taxable income from the profit and loss statements sent by the tax advisor for 2014 and subsequent years was not submitted by the shareholder to the tax office of residence or was not taken into account by the tax office of residence despite being submitted, the profit shares will now be taxed for the first time. As a result, the income tax on the results is due approx. 7-8 years later than usual. In addition to the income tax arrears, interest on arrears will accrue from the 15th month after the respective assessment year (6% p.a. until 2018, 1.8% p.a. from 2019).
Yes, the tax audit for the years 2013 to 2016 was carried out. The audit report is available. The tax advisor has still raised objections, which will be dealt with shortly. In addition to the elimination of technical assessment errors, the main result is the consistent implementation of the linearization of the final payment and the withdrawal of the preferential treatment of capital gains in accordance with Sections 16/34 EStG. Unfortunately, we cannot yet foresee how much time the tax authorities will need before the changes are taken into account in the shareholders' income tax assessments. You will be informed accordingly in the event of deviating assessments.
The preferential tax treatment (Section 34 EStG) only applies to extraordinary income. Extraordinary income is, for example, profits resulting from the sale of an entire business or an entire share in a commercial business (Section 16 EStG). Current commercial income is not tax-privileged, even if the proceeds from the sale arise in connection with the termination of a business.
At the time the prospectus was issued, the income from the sale of the film rights was still extraordinary, preferential income that a shareholder could claim if he had reached the age of 55 at the time of termination. A taxpayer can only claim the preferential treatment once in a lifetime.
Due to the so-called interlocking case law (from 2007 to 2017), the sale transaction (in this case the sale of film rights) is treated as a current business transaction for companies that, according to the forecast, only generate a total profit through the sale. Current business transactions are not tax-privileged in accordance with Sections 16/34 EStG.
Notices that were issued before the tax audit still treated the profit from the sale of the film rights as a preferential profit. After evaluation of the tax audit report, the preferential treatment will unfortunately no longer apply.
The preferential treatment also does not apply to the portion of the final payment that has already been taxed on an ongoing basis in previous years via the linearization of the final payment as an additional royalty.
With the exception of trade tax, the profit generated by a commercial partnership is taxed directly to the partners according to their respective shareholding. The relevant profit is determined in accordance with income tax law principles and irrespective of whether the partner receives distributions from their holding company.
Distributions from a partnership are tax-neutral and only reduce the partner's capital account in his company.
The prospective final payment corresponds to the purchase price for the sale of the film rights to the studio after the license agreement expires. A capital gain of the same amount arises because the production costs of the film have already been treated as expenses. This capital gain is not (or no longer) tax-privileged in accordance with §§ 16/34 EStG. It is subject to standard rate taxation. The fixed part of the final payment was already subject to normal rate taxation for tax purposes as an additional licence fee via linearization in previous years.
During the tax audit, subsequent notifications of special operating income and special operating expenses became known and were taken into account accordingly.
In the year of accession, a start-up tax loss was incurred in the amount of the cash contribution including the debt-financed contribution. The shareholders received a tax refund on the loss at their personal tax rate. In the following years, profits were generated that were taxed at the personal tax rate and arithmetically reduced the tax refund already received. As no total profit was generated from the investment, the net amount remains a tax refund.
The contribution made, less the disbursements, has already been "written off" for tax purposes via the start-up loss.
Additional amortization is therefore neither necessary nor possible.
You are solely responsible for checking that the amounts reported correspond to the amounts stated in your tax assessment notice (subsequent notice) (see note in the results notification). In the event of discrepancies, we recommend that you lodge an objection yourself or consult your tax advisor.
The business model of the fund company consists of an entrepreneurial activity (see prospectus). The fund company produces a theatrical film at its own expense and has the film marketed internationally by a US studio. The fund company's income is calculated on the basis of box office receipts.
The revenues estimated and projected by US experts could not actually be achieved.
However, these economic and tax risks were pointed out in the prospectus.
The tax concept regarding the initial losses from the film production was fully recognized by the tax office after some initial difficulties.
In contrast to the prospectus, part of the final payment, i.e. the fixed purchase price component for the sale of the film rights at the end of the term, was distributed and taxed by the tax office as an additional licence fee over the term of the licence (linearization) and not only in the year of termination. This conceptual deviation was the result of a later decision by the Federal Fiscal Court.
After the issue of the prospectus, the legislator amended the Trade Tax Act and abolished the deductibility of trade tax as a business expense and introduced minimum taxation, i.e. trade income for a year in excess of EUR 1 million can no longer be offset in full against an existing loss carryforward, but only up to 60%. This resulted in a trade tax burden at fund level, which could arithmetically reduce the income tax burden at shareholder level as a rate reduction, provided individual requirements were met.
Please refer to the relevant letters from PKF Industrie- und Verkehrstreuhand dated September 2023.
The managing agent of the fund companies had informed all shareholders that a suspension of execution (AdV) in the amount of the annual linearization had been applied for at fund level with effect for all shareholders and requested shareholders who do not wish to have an AdV to return a corresponding declaration with an individual withdrawal. If you have not yet submitted a withdrawal declaration, you can send the withdrawal of the AdV informally, stating your investor number, to the e-mail address provided (investoren@hannover-leasing.de). The fund company's tax advisor will submit the revocation to the permanent establishment tax office accordingly.
For tax purposes, the fund company "lives" as long as tax-relevant business transactions occur, even if the fund company has already been deleted from the commercial register and no longer exists under civil law.
Unfortunately, we are not yet able to estimate the timeframe until the final assessment of the profit and trade tax assessment notices.
Termination is planned after the final assessment of the previous year with tax-relevant business transactions and the settlement of all receivables and liabilities (including trade tax).
Shareholders who have already left the company can continue to receive notices of change for the assessment years of their shareholding.
