OECD releases latest edition of the Transfer Pricing Guideli ...

On 20 January 2022 the OECD released the 2022 edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. The current version consolidates in one publication the changes and adjustments that have taken place to the 2017 version of the OECD Transfer Pricing Guidelines.

Italy reshapes format, contents and requirements for transfe ...

No transfer pricing adjustment for breaches of formality

The Supreme Tax Court has rejected a tax office assessment attempt on the basis of a hidden distribution of profits because of a delay in agreeing management charges in writing, saying that the double tax treaty related party provision bases the arm’s length standard on amount, rather than on the reason for, or documentation, of a transaction.

European Court of Justice: customs values and the recogniti ...

In its decision in Hamamatsu Photonics Deutschland (C-529/16) the European Court of Justice (ECJ) held that Articles 28 to 31 of the Customs Code (old version) must be interpreted as meaning that they do not permit an agreed transaction value, composed of an amount initially invoiced and declared and a flat-rate adjustment made after the end of the accounting period, to form the basis for the customs value, without it being possible to know at the end of the accounting period whether that adjustment would be made up or down.

No forgiveness of interest in view of compensating adjustmen ...

The Supreme Tax Court has held that a taxpayer cannot claim forgiveness of the interest due on the tax payment following a transfer pricing adjustment on the grounds that an associated company had no claim for interest receivable on the corresponding adjustment in its home country.

Related party by ownership despite restrictions on exercise ...

The Supreme Tax Court has held that internal or other restrictions on the excise of ownership rights do not obviate an association by common shareholding of more than 25%. It has also held that the application of the transfer pricing documentation rules to cross-border transactions only is, while discriminatory, justified by the need to protect tax revenue.

Tax & Legal News - Issue 3, June 2019

Issue 3 of our Newsletter for 2019, including news about the Research & Development Subsidy Bill, the Finance Bill 2019 and the Supreme Tax Court decision in relation to the impact of Article 9 (1) of the OECD Model Tax Convention on transfer pricing income adjustments.

Newsflash: Supreme Tax Court changes its case law regarding ...

According to the Supreme Tax Court in its ruling of 27 February 2019, published on 15 May 2019, and contrary to its previous case law, Article 9 (1) of the OECD Model Tax Convention, does not prohibit an income adjustment under domestic transfer pricing rules, where the write-off of an unsecured group loan is not recognised as a deduction from taxable profits.

Supreme Tax Court rules on arm’s length interest on intercom ...

In a most recent judgment, the Supreme Tax Court decided on the transfer pricing method to determine an arm's length interest on intercompany loans. In its decision the highest tax court also provides some guidelines on the parameters to be observed from a purely tax point of view. Also, the court takes time to compare the adequacy of the various standard methods under review.

OECD interim report on BEPS

The OECD has published an interim report on the first seven of its fifteen planned suggestions towards combatting base erosion and profit shifting (BEPS) by multinationals through aggressive tax planning and tax avoidance projects.

Newsflash: TP Perspective on Act to Modernize the Relief fro ...

On May 7, 2021, the German Parliament (Bundestag) adopted the “Gesetz zur Modernisierung der Entlastung von Abzugsteuern und der Bescheinigung von Kapitalertragsteuer - AbzStEntlModG” (Act to Modernize the Relief from Withholding Taxes and the Certification of Capital Gains Tax).

Annual Tax Bill 2013

The cabinet resolved an annual tax bill 2013 on May 23, 2012 with many editorial and similar changes of formality. Mostly, the changes are necessary to update the references to the latest EU provisions and to reflect recently decided ECJ and Supreme Tax Court cases. Changes of substance are:

Tax & Legal News April, 2018

The April edition includes news on two decisions of the German Constitutional Court, on the EU finance ministers' agreement on rules of mandatory disclosure for intermediaries and the European Commission's proposal on new rules for the taxation of the digital economy.

Tax & Legal News – Issue 1, January 2013

In this issue: PwC Reports, Official Pronouncments, Supreme Tax Court Cases, From Europe and From PwC

Country-by-Country Reports: German Ministry of Finance relea ...

On 20 December 2016 legislation was passed introducing measures to combat base erosion and profit shifting. A part of this legislation - introduced in the new Section 138a of the General Tax Code - imposed an obligation on multinational enterprises to report annually for each tax jurisdiction in which they do business, so-called Country-by-Country (CbC) reports.

Successful constitutional complaint against income correctio ...

The German Constitutional Court overturned a 2019 judgment of the Supreme Tax Court regarding the erstwhile change in its case law on the issue of the income correction with respect to an unsecured group loan because the tax court failed to submit the facts of the case to the European Court of Justice (ECJ) for final clarification and thus violated the complainant's right to the lawful judge under Article 101(1) of the Constitutional Statute.

Swiss double tax treaty excludes thin capital rule

The Supreme Tax Court has held that the thin capital rules in force up to 2007 are in breach of the non-discrimination clause in the Swiss double tax treaty.

Draft ordinance on permanent establishment profits

The finance ministry has published a draft of its ordinance on permanent establishment profits following the authorised OECD approach.

Tax administration stresses the need for an effective Tax Co ...

For the first time the German tax administration publicly raised the issue of an internal control system for tax purposes to ensure tax compliance. However, the corresponding Implementation Decree published on May 23, 2016 leaves many questions open and neglects to point out what the companies should be prepared for in the future.

UPDATE : Bundestag passes the Act to Modernise the Relief of ...

On 5 May 2021, the Bundestag passed the Act to Modernise the Relief of Withholding Taxes and the Certification of Capital Gains Tax. The law as passed is based on the resolution recommended and passed by the Bundestag Finance Committee on 21 April 2021.