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751-Sabar Institute Of Management, Tajpur - Gujarat Technological ...

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Legal Framework summary:<br />

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Independent judicial system with hierarchy of courts on state and central levels<br />

Comprehensive legal structure (influenced by EU and international law)<br />

Administration of justice is divided into five branches: ordinary, administrative, social,<br />

and financial<br />

Strong business, investment and trade freedom (Ranked 26 th in the Wall Street Journal’s<br />

2012 Index of Economic Freedom)<br />

German law does not differentiate between foreigners and Germans when it comes to<br />

investments or establishing companies<br />

Loopholes in taxation system lead to huge revenue losses for government<br />

Tax evasion by hiding money in Switzerland or Liechtenstein (German government paid<br />

for CDs with data on tax evaders)<br />

Tax evasion treaty with Switzerland still pending (Federal Council of Germany did not<br />

approve it in November 2012)<br />

Treaties with other tax havens needed to overcome loopholes<br />

Cut in government subsidies especially in the renewable energy sector complicates<br />

business<br />

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