In light of global trading of multinational corporations the tax offices are in constant pursuit of stronger international tax compliance. The German Federal Finance Ministry has now issued guidelines on coordinated external tax audits with foreign tax administrations.
Tax & Legal
The finance ministry has accepted as a precedent a Supreme Tax Court ruling allowing “large” businesses subject to regular tax audit to provide with tax effect for the costs to be incurred in assisting the tax auditors.
The Supreme Tax Court has held that a large company is entitled to provide with tax effect for the costs of supporting a future tax audit in respect of all years ended on balance sheet date.