Foreign partners in German partnerships shouldtake note of the new statutory treatment of specialpayments (Sondervergütungen) now codified in section50d paragraph 10 of the Income Tax Act (Einkommensteuergesetz,or EStG). The question iswhether these special payments qualify as businessprofits...

Fernandez [2004; The value of tax shields is NOT equal to the present value of tax shields. Journalof Financial Economics, 73, 145–165] claims to derive a formula for the valuation of debt tax shieldsfor firms with cash flows that growperpetually at a constant rate.We showthat his formula is...