Author: Courts of Brazil

Brazil vs Pfizer Ltda, October 2018, CARF, Case No 1201-002.628

A significant issue under dispute between taxpayers and the tax authorities in Brazil relates to the formula for calculating the resale price method (Preço de Revenda Menos Lucros) (PRL) of 60%. The Normative Ruling (NR) No. 243 issued in 2002 introduced significant changes to the calculation of the PRL method, creating controversy as to whether it had expanded beyond the scope of what the law intended. In the case against Pfizer Ltda the tax authorities […]

Brazil vs Macopolo, July 2014, Supreme Tax Appeal Court, Case no 9101-001.954

The case involved export transactions carried out by a company domiciled in Brazil, Marcopolo, manufacturing bus bodies (shells) which were sold to subsidiary trading companies domiciled in low tax jurisdictions (Jurisdição com Tributação Favorecida). The trading companies would then resell the bus bodies (shells) to unrelated companies in different countries. The tax authorities argued that the sale of the bus bodies to the intermediary trading companies carried out prior to the sale to the final […]