Part 1 - AL-Tax

Principle of Source-based versus Source-based Worldwide income No informationinternational worldwide incomeincometaxationAdministrative Administrative Type of administrative ‘Weberian model’ on the Anglo-American system Yestradition system basis of Roman-LawtraditionsAdministrative Organizational type of Tax administration Federal (national) tax Yesorganization tax administration governed by the federal administration in the fieldstatesof federal corporate incometaxation (transfer pricing)Judicial Tax courts Relative importance of High relevance of Federal High relevance of the Indifferenttax courts to trigger Tax Court and regional tax competent tax courtsinstitutional change courts; APA cases havenot yet been brought tothe court135Institutional framework to generate an individual APAAdministrative Legal title Nature of legal right to De lege, taxpayer has no De facto, taxpayer has Yesreceive an APA legitimate title to receive legitimate title to contractan APAan APALegal Agreement Nature of agreement ‘Receiving’ an APA from ‘Contracting’ an APA Yestype between tax authority the tax authorities between the tax authoritiesand taxpayerand the taxpayerDistortion Relative advantage of Taxpayers have won most Taxpayers have won most Indifferenton legal taxpayers over tax international tax cases in international tax cases inenforceability administrations in the the courtroom; However, the courtroom; However, thiscourtroom this has been many years has been many years afterafter auditaudit(Continued)