Reprinted from Worldwide Tax Daily, 13 November 2002,(2002 WTD 219-1 taxes, but on a percentage of the adjustment. There Effective Date fore, a taxpayer may still need to pay a surcharge If enacted, the documentation requirements and even if an adjustment does not lead to additional other transfer provisions will apply to all business taxes, for example, the case of losses. The penalty years starting after 31 December 2002 that the U.s. IRS issued new penalty regulations. 8 Conclusions It is not surprising that the german legislature has responded to the October 2001 decision of the s preme Court with legal documentation requirement Although many questions remain unanswered, in =动二 ussed at the time the cluding constitutional issues, taxpayers ought to pre- Tax Notes InternationalTax Notes International 3 Reprinted from Worldwide Tax Daily, 13 November 2002, (2002 WTD 219-1) taxes, but on a percentage of the adjustment. There￾fore, a taxpayer may still need to pay a surcharge even if an adjustment does not lead to additional taxes, for example, the case of losses. The penalty provision goes beyond the U.S. penalty provisions that the German tax authorities criticized at the time that the U.S. IRS issued new penalty regulations.8 Effective Date If enacted, the documentation requirements and other transfer provisions will apply to all business years starting after 31 December 2002. Conclusions It is not surprising that the German legislature has responded to the October 2001 decision of the Su￾preme Court with legal documentation requirements. Although many questions remain unanswered, in￾cluding constitutional issues, taxpayers ought to pre￾pare contemporaneous documentation that comports with the proposed legal requirements. ✦ 8 The temporary U.S. regs were discussed at the time the OECD guidelines were drafted, see Runge, IStR 1995, pp. 505 ff; Werra, IStR 1995, pp. 457 ff; Werra, IStR 1994, pp. 483 ff