Germany - Draft Legislation Issued for Implementation of Authorized OECD Approach
- U. Andresen
- International Transfer Pricing Journal, 2012 (Volume 19), No 5
- 30 August 2012
Germany is about to introduce the Authorized OECD Approach in its national tax legislation. This article analyses the draft provision; addresses concerns regarding its compliance with constitutional as well as EU laws and shows how the provision may be misused to broaden the tax base by transfer pricing adjustments in relation to dealings. Further, it shows that taxpayers may not be able to use mutual agreements procedures if such adjustments are triggered by non-transfer pricing provisions.