Civil law

The principle of contract freedom is one of the guiding principles of civil law. As a general rule, anyone and everyone can conclude an agreement of any content, as the Romans used to say: "No harm is done to the willing." Volenti non fit iniuria. The principle relates to risk, which is defined in business as the likelihood that objectives will not be met and results will not be achieved, which will be a loss for the project. If someone has entered into an agreement, but because of the risks it did not deliver the intended results, no one can have hard feelings for anyone. But risk must be distinguished from bravado. Doing business without the security of well-written agreements is bravado, if not a gamble. It has absolutely nothing to do with the other party's bad intentions. However, another Roman principle is still respected by the majority in business. Pacta sunt servanda - agreements must be kept. The issue is that, under civil law, a declaration of intent must be interpreted in accordance with the circumstances under which it was made, the rules of social interaction, and even established custom. Instead of relying solely on an agreement's literal wording, it is important to consider the parties' mutual intent and the purpose of the agreement. Due to the fact that each party interprets the terms of a commercial agreement differently, a flawed contract may unintentionally lead to a court dispute.

At several points, the close relationship between civil law and tax law is evident. The tax on civil law transactions is the best example of how the effects of legal transactions frequently result in tax consequences. It applies to acts such as a loan, a donation, an annuity, the creation of a mortgage, a sale, a deed of the company formation, or an irregular deposit. Many references to civil law can be found in tax law; for instance, the provisions of the Civil Code apply mutatis mutandis to joint and several liability for tax liabilities. A few years ago, the Supreme Court even ruled that the head of the tax office can file a fraudulent conveyance claim (actio Pauliana), or request that a legal act be declared ineffective, if it is believed that the debtor has disposed of assets in order to avoid tax liability. Value Added Tax (VAT) has the least in common with civil law of all taxes.