238. High Court Issues Major Transfer Pricing Decision.KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Germany Webpage Click on the above link to visit the KPMG Germany webpage on the Mondaq website Article by Alexander Vogele For editorial cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, date, disclaimer, and notice of copyright see end of this article. The Federal Tax Court has handed down a major transfer pricing Transfer pricing refers to the pricing of goods and services within a multi-divisional organization, particularly in regard to cross-border transactions. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be decision dated 17 October 2001 (released in mid-November). The new judgement decides an appeal of a December 1998 decision by the Dusseldorf Tax Court that attracted attention primarily because of the lower court's rejection of the use of so-called secret comparables in transfer pricing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . In May 2001, an interlocutory Provisional; interim; temporary; not final; that which intervenes between the beginning and the end of a lawsuit or proceeding to either decide a particular point or matter that is not the final issue of the entire controversy or prevent irreparable harm during the pendency of the ruling by the Federal Tax Court in the same matter signalled the high court's unwillingness to uphold the transfer pricing documentation requirements that had been proposed by the German tax authorities. The judgement must be regarded as a victory for the tax authorities in that the high court overturns the lower court's judgement pursuant to the tax authorities' appeal and remands the case for further deliberations. The taxpayer's cross-appeal on a narrow technical issue is rejected. While the judgement does address the issue of secret comparables, holding that their use by the tax authorities cannot be ruled out categorically, the main thrust of the court's opinion is directed to fundamental questions of methodology and burden of proof in transfer pricing litigation in the context of Germany's present statutory framework. The judgement may be expected to have considerable impact on future transfer pricing litigation. Editorial cut-off date: 28 November 2001 Disclaimer and notice of copyright This article treats the subjects covered in condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. form. It is intended to provide a general guide to the subject matter and should not be relied on as a basis for business decisions. Specialist advice must be sought with respect to your individual circumstances. 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KPMG Germany Marie-Curie-Stra[beta]e 30 Frankfurt D - 60439 GERMANY Tel: 6995870 Fax: 6995871050 E-mail: wbader@kpmg.com URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.kpmg.de (c) Mondaq Ltd, 2002 - Tel. +44 (0)20 7820 7733 - http://www.mondaq.com |
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