Lower Courts Rule on Compatibility of Transfer Pricing Rules with EC Law
- Andreas Perdelwitz
- International Transfer Pricing Journal, 2009 (Volume 16), No 1
- 1 January 2009
In February 2008, the Tax Courts of Düsseldorf and Münster rendered two judgments involving income adjustments based on Sec. 1 of the Foreign Tax Code (AStG) in which they expressed doubts about the compatibility of German rules with EC law. The Tax Court of Münster even held that Sec. 1 of the AStG is incompatible with the freedom of establishment. In this article, the author considers the two judgments and their possible implications.