Is your multinational firm burdened with a tax audit adjustment and as a consequence is taxed twice for one and the same profit? There are various options on a national and international level to resist tax audit adjustments and to reduce the burden of double taxation.

On a national level, unjustified adjustments need to be lodged with an appeal in a first step and can be brought to court, if the appeal is rejected. In this case, elimination of double taxation requires a successful litigation proceeding. On an international level, proceedings can be initiated to reduce double taxation on the basis of bilateral double tax treaties or the EU Arbitration Convention. The advantage of these proceedings is that the elimination of double taxation is not dependend on the fact that a judge confirms the taxpayer’s opinion on the “correct” transfer price. Rather, the contracting states agree among each other on the “correct” transfer price and eliminate the double taxation.

Do you have questions about the advantages and disadvantages of the individual proceedings to eliminating the burdon of double taxation? We are at your disposal as a competent contact.