Transfer Pricing
1. Aufl. 2021
Besitzen Sie diesen Inhalt bereits,
melden Sie sich an.
oder schalten Sie Ihr Produkt zur digitalen Nutzung frei.
16. Litigation, dispute avoidance and resolution
16.1. Description of the facts
In 2021, during a timely tax audit, a transfer pricing adjustment for the assessment period 2019 has been made concerning the loan relationship between Zeitgaist GmbH and Zeitgaist Finance LLC (see chapter 11). The tax authority argues, only an interest rate of 1.1 % is in line with the arm’s length principle. The agreed intercompany interest rate by the Zeitgaist Group of 7.5 % is considered too high. A new tax assessment has been issued. This new tax assessment is based on a profit adjustment of EUR 384,000 (interest expense at 7.5 % and a loan volume of EUR 6 mio = EUR 450,000; interest expense at 1.1 % = EUR 66,000. Difference = EUR 384,000.) which has been carried out. The tax auditors also announce that this interest rate will be applied for the remaining term of the loan (until the end of 2024).
16.2. Discussion and solution (Eva Greil)
Basic problem. Intra-group cross-border business transactions repeatedly give rise to disagreements on facts and circumstances and their legal assessment between taxpayers and tax administrations worldwide. It is not only the opinions of taxpayers and tax administrati...