226 TPJ SEPTEMBER/OCTOBER 2004 ily with the concept of the arm's length range. As men- not exclude the applicability of the prominent decision tioned before, an arms length range consists of arms but provides some analysis based on experiences in tax length values. Provided that the arms length range has audits in the time after the decision was rendered. most of been determined carefully and has been subject to any ne- the statements are in the authors'opinion clarifications on essary adjustment, each point within the range is as much the interpretation of the decision. The taxpayer is well an arm's length value as the other values are advised to fulfill the- limited- cooperation obligations Additionally, it remains totally unclear how such"most for open years before the new law has been introduced. It should be taken into account that the tax authorities are try of Finance refers to Sec. 1. 48 of the OECD Guide. allowed to estimate the taxpayer's income if the taxpayer lines which reads: "In general, and to the extent that it is does not cooperate at all and the tax authorities are not able possible to distinguish among the various points within the to examine the factual background by other means ange, such adjustments should be made to the point However, the authors are most concerned about the Min within the range that best reflects the facts and circum- istry of Finance's interpretation of the arm's length range stances of the particular controlled transaction concept. It is not in line with the Federal Tax Court deci- However, in the authors'opinion, both Sec. 1. 48 of the sion and the existing law. Constitutional principles support the view of the Federal Tax Court. Tax law is a major inter ECD Guidelines and the Ministry of Finances perspe ference with the freedom rights of any individual. Such tive refer to a point within the range that fully reflects the interference is subject to the principle of adequate and pro- be determined through commodity exchange prices. In portional interference which means that if there are differ- existing range to "one"exclusive transfer price. However, zen.21 such exceptional cases, a range does not exist. Therefore, it is not correct to allude to the rm's length range concept 4. CONCLUSION ecker and H K. Kroppen( Cologne: Verlag Dr. Otto Schmidt 1997/2001).o The Letter deals with a limited number of statements made 7.30, note 7. See also H K Kroppen, S Rasch and A Roeder, Tax Notes Inter by the Federal Tax Court. The Ministry of Finance does national(2001), at ILIl