Consolidation of intangible assets within an international group

The allocation of intangible assets is a much-discussed and important topic in corporate, tax audit and accountancy practice. It is quite common for intangible assets to be transferred between a parent company and its associated subsidiaries. However, in the case of such a transfer, the question arises for the parent company as to whether the provision of intangible assets to affiliated companies may be charged. On 9 August 2000, the Federal Fiscal Court issued a judgement on this matter, in which it affirmed precisely this fundamental question, provided that certain conditions are met. This paper examines how this judgement came about, what impact it has on the allocation of intangible assets, the resulting consequences for companies, and the fundamental role played by the OECD in the allocation of intangible assets within international groups.