Reason 1: Tax authorities do not accept the profit split and can justify this relatively easily based on the facts of the case. The following text passage from a current tax audit is an example of this: “First of all, we would like to point out that in the opinion of the tax authorities, the …
Driven by the OECD’s Base Erosion and Profit Shifting (“BEPS”) initiative, there is a trend towards cross-border administrative cooperation in the context of international tax law. This trend manifests itself in concrete measures such as the International Compliance Assurance Programme (“ICAP”) and joint tax audits (“Joint Audits”). The latter express the desire to achieve legal …
On 10 December 2019, the German Federal Ministry of Finance published a draft bill of the so-called ATAD Implementation Act (“ATAD-UmsG“) by which the second European Anti Tax Avoidance Directive (“ATAD II”) should be implemented into German national law. This draft not only contained amended provisions related to the already existing German CFC rules and …
