ARTICLE · 20 JULY 2001

221. Transfer Pricing: Documentation Regs. Derailed By FTC Decision?

KPMG Germany

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Alexander Vögele

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A slightly condensed version of this article will appear in the July/August edition of International Tax Review.

For editorial cut-off date, disclaimer, and notice of copyright see end of this article.

1. Surprise Decision By FTC

A decision handed down in early May 2001 by the Federal Tax Court (FTC) indicates that key provisions of Germany's proposed regulations on transfer pricing documentation requirements are devoid of legal foundation and therefore invalid (ruling of 10 May 2001 - I S 3/01 - DStR 2001, 985). Further delay in issuing final documentation regulations may now be expected as the Federal Ministry of Finance strives to assess the impact of the FTC decision on its transfer pricing policies.

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