🇩🇪Germany

Fehlende Arm's Length Dokumentation

1 verified sources

Definition

Tax audits demand review of cash pool agreements, calculation of synergy gains, and allocation based on functions/risks. Pool leaders often misclassified as routine, leading to profit shifts.

Key Findings

  • Financial Impact: 2-5% of pooled interest income reallocated + 10% penalty interest on adjustments
  • Frequency: High; German authorities using financial market data for audits
  • Root Cause: Inadequate contemporaneous documentation, failure to benchmark rates, ignoring group credit rating

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Holding Companies.

Affected Stakeholders

Group Treasurer, Head of Tax, Compliance Officer

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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