Author (Person) | Becker, Johannes |
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Series Title | Intertax |
Series Details | Vol.43, No.10, October 2015, p589–594 |
Publication Date | October 2015 |
ISSN | 0165-2826 |
Content Type | Journal | Series | Blog |
Abstract: In its decision dated 17 December 2014, I R 23/13,1 the Federal Tax Court (BFH) defined its opinion on the barrier effect of Article 9 of the double taxation treaty with the USA in cases involving the arm’s-length principle more precisely. The author show the consequences of that decision for the German treaty policy and points out that there can be no doubt that Germany is following a restrictive approach applying Article 9 paragraph 1 OECD Model Convention (OECD-MC). Hence domestic tax law can solely be applied if it is not contrary to the arm’s-length principle. Furthermore, the author shows that the BFH had accepted the group support as being part of the arm’s-length conditions for unsecured loans. In consequence it is convincing that the BFH rejected the view of the tax administration, which had not allowed a current value depreciation due to domestic tax law, i.e., section 1 Foreign Tax Act. |
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Source Link | Link to Main Source http://www.kluwerlawonline.com/index.php?area=Journals |
Subject Categories | Taxation |
Countries / Regions | Germany |