- Germany’s Federal Ministry of Finance has issued new transfer pricing guidance with customs implications.
- The guidance states that businesses must notify the customs administration of upwards transfer pricing adjustments, which is an obligation under the General Tax Code.
- Failure to do so could result in general managers being held criminally liable. While the guidance is not binding and its validity is questionable with regards to the Hamamatsu case law, businesses should consider the criminal aspects and assess whether a notification obligation is triggered.
Source Baker & McKenzie
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