27.09.2023 Adjustment of branch profit only if terms do not meet arm’s ... The Nuremberg Tax Court decided that the provision of Sec. 1 (5) in conjunction with Sec. 1 (1) of the Foreign Tax Act regarding the arm's length principle for cross-border determination of the income of a permanent establishment is not relevant and, to this extent, the ordinance on the allocation of profits of permanent establishments (Betriebsstättengewinnaufteilungverordnung) is also not applicable if there is no transfer pricing issue between a domestic permanent establishment and its foreign parent. Categories: Tax CourtKeywords: permanent establishment (PE), arm's leng ...
24.10.2021 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. Categories: Supreme Tax Court cases, Transfer pricin ...Keywords: arm's length, intercompany loan, compara ...
13.11.2017 Commercial transactions between friends; recognition of loss ... On 8 November 2017 the Supreme Tax Court published a decision made on 9 May 2017 on a case involving a gratuitous share transfer between friends, where the transferor had significant acquisition costs. The Court held that the presumption of a commercial transaction is not rebutted purely because a friendship exists between the contracting parties. Categories: Supreme Tax Court casesKeywords: share transfer, arm's length, Income Tax ...
05.04.2016 No conflict between Foreign Tax Act and tax treaty definitio ... The finance ministry has decreed that Supreme Tax Court judgments limiting the income adjustments under the Foreign Tax Act to questions of amount are not to be followed as precedents prohibiting adjustments by reason of the nature of the transaction under review. Categories: Official PronouncementsKeywords: income adjustment, arm's length, Foreign ...
09.09.2015 Arm’s length related-party loan interest to include risk upl ... The Supreme Tax Court has held that a write-off of an irrecoverable related-party loan is not subject to income adjustment under the arm’s length rules, although the interest rate should reflect the bad debt risk. Categories: Supreme Tax Court casesKeywords: bad debt, related-party loan, arm's leng ...
