Dr. Alexander Vögele, KPMG Frankfurt
For editorial cut-off date, disclaimer, and notice of copyright see end of this article.
1. FTC ruling of June 2001
Ruling on a motion to stay collection of tax, the Federal Tax Court (FTC) has affirmed the existence of "serious doubts" as to the compatibility of Germany's codification of the transfer pricing arm's length principle with the anti-discrimination provisions of Art. 52 ff. (new article 43 ff. – freedom of establishment) and Art. 73b ff. (new Art. 56 ff. – free movement of capital) of the EC Treaty. The ruling, dated 21 June 20011 accordingly grants the taxpayer a stay of collection pending a judgement on the merits. German procedural law gives taxpayers a right to a stay where "serious doubts" exist as to the legality of the assessed tax.
