A Romanian subsidiary faced a transfer pricing audit covering management fees paid to its foreign parent and affiliated product purchases. The tax authority denied deductions on the services, finding no proven benefit, and rejected the CUP method in favour of a return-on-total-costs adjustment. Romania's Supreme Administrative Court in 2025 largely sided with the taxpayer, partly overturning the administration's adjustments while confirming the disallowance of inadequately evidenced management service fees ... Read more

A Romanian company challenged additional corporate income tax following transfer pricing adjustments for FY 2012–2017. The Bucharest Court of Appeal had largely upheld the tax authority's position for FY 2013–2017. Romania's Supreme Administrative Court quashed that decision in 2025, finding the lower court had reproduced the tax authority's reasoning without independent analysis and failed to justify its rejection of the court-appointed expert's findings, remanding the case for fresh review ... Read more

A Romanian company challenged additional corporate income tax following transfer pricing adjustments for FY 2012–2017. The Bucharest Court of Appeal had largely upheld the tax authority's position for FY 2013–2017. Romania's Supreme Administrative Court quashed that decision in 2025, finding the lower court had reproduced the tax authority's reasoning without independent analysis and failed to justify its rejection of the court-appointed expert's findings, remanding the case for fresh review ... Read more

A Romanian manufacturer of lifting and handling equipment paid royalties to its French parent using a TNMM-based arm's length analysis. The tax authority rejected four CUP comparables submitted by the taxpayer due to industry and royalty-base differences. Romania's Supreme Administrative Court sided with the tax authority, finding the comparables did not meet comparability criteria, and remanded the case for reexamination in 2024 ... Read more

A Romanian sugar distributor was audited over intra-group raw sugar purchases priced against New York commodity exchange quotes and retailer-invoiced service deductions. The Court of Appeal partly annulled the assessment, finding commodity exchange prices inappropriate as CUP comparables and the services deductible. Romania's Supreme Administrative Court dismissed both parties' appeals in January 2024, confirming the lower court's findings ... Read more

A Romanian bottler used TNMM with multi-year averages and excluded non-recurring revaluation and reorganisation costs from its transfer pricing analysis. Tax authorities reversed these adjustments and revised the benchmarking sample, assessing additional corporate income tax. Romania's Supreme Administrative Court ruled mostly in favour of the taxpayer in January 2024, endorsing the multi-year approach and the exclusion of extraordinary costs as consistent with the OECD Guidelines ... Read more

A Romanian company claimed deductions for gas and strategy consulting services purchased from related parties. Tax authorities denied part of those deductions under the arm's length principle. The court of first instance ruled for the taxpayer, relying heavily on an expert report. Romania's Supreme Administrative Court set aside that decision in May 2023, finding the lower court had reproduced the expert report verbatim without independent legal reasoning, and remanded the case for reconsideration ... Read more

A Romanian company was assessed additional taxable income after an audit found its reported 10% profitability on sales to a related party was not achieved, resulting in significantly underpaid corporate tax. The tax authority applied TNMM using the median ROTC indicator from comparable independent companies. Romania's Supreme Administrative Court dismissed the appeal in 2022, upholding the assessment and confirming the validity of the comparables search criteria applied ... Read more

A Romanian company challenged a lower court ruling that fixed its transfer price at the median of the arm's length range, arguing any value within the range reflects market value under OECD Guidelines Article 2.7. The tax authority contended the OECD Guidelines are not legally binding in Romania. In May 2022, the Supreme Administrative Court dismissed the appeal, upholding the median adjustment in favour of the tax authority ... Read more

A Romanian subsidiary deducted costs for services purchased from affiliated Dutch and Czech entities. The tax authority disallowed the deductions, finding no supporting evidence that services were actually provided and citing Romanian rules treating management and control functions as non-deductible stewardship activities. Romania's Supreme Administrative Court overturned the first instance ruling and upheld the tax authority's assessment in April 2021 ... Read more

A Romanian company deducted costs for management, production, logistics and product management services paid to two related parties under several intra-group contracts. Tax authorities disallowed the deductions, arguing the benefit test was not satisfied. The Supreme Administrative Court upheld the first-instance ruling in favour of the taxpayer, finding expert evidence confirmed the services were necessary and genuinely rendered ... Read more

A Romanian company challenged a transfer pricing assessment issued by tax authorities adjusting its income under Romanian transfer pricing rules. The Bucharest Court of Appeal partially annulled the assessment, prompting a further appeal by the tax authorities. In March 2021, Romania's Supreme Administrative Court found the appeals partly well-founded, addressing the most appropriate method selection, TNMM application, and adjustment to the median of the interquartile range for intra-group services ... Read more

A Romanian gas distributor challenged a transfer pricing assessment concerning its natural gas purchase prices from an affiliated supplier. The tax authority applied the transactional net margin method, using ORBIS and FISCNET databases to identify six comparable EU companies after only one Romanian comparable qualified. The Court of Appeal dismissed the taxpayer's appeal in December 2020, upholding the assessment and confirming the arm's length benchmark methodology applied by the authorities ... Read more

A Romanian company granted interest-free loans to its affiliate, Poiana Ciucas S.A. Tax authorities assessed notional interest income using comparable market rates of 5.45% to 19.39%. The taxpayer argued the funds represented a capital contribution and that claims were time-barred for periods before May 2010. The Supreme Administrative Court remanded the case for re-examination in December 2020 ... Read more

A Romanian manufacturer and distributor in the Electrolux group was assessed by tax authorities after reporting consistent losses while the wider group remained profitable. Authorities applied a benchmark study comparing net profit margins against independent household appliance traders, with adjustments for depreciation and extraordinary costs. Romania's Supreme Administrative Court remanded the case for reexamination in November 2020, finding the comparability analysis required further review ... Read more

A Romanian dairy company challenged a transfer pricing assessment covering both production and distribution activities, arguing the tax authority improperly replaced market prices and that a forensic expert report supported its position. The Supreme Administrative Court dismissed the appeal in 2020, upholding the tax authority's use of the median and comparable companies, finding the expert's analysis insufficiently reasoned ... Read more

A Romanian company challenged a tax authority assessment that rejected intra-group machinery rental expenses for 2010 to 2013. The dispute centred on whether year-by-year or multi-year financial data should be used in the comparability analysis. Romania's Supreme Administrative Court ruled mostly in favour of the taxpayer in September 2020, affirming that multi-year data is the correct approach under OECD Guidelines paragraphs 3.76 and 3.79 ... Read more

A Romanian company purchased stones from related parties and paid for intra-group services. Following a tax audit, authorities adjusted the purchase price using TNMM and disallowed service cost deductions for failing the benefit test. The court of first instance partly upheld the assessment, and Romania's Supreme Administrative Court confirmed that decision in full in July 2020, finding both appeals unfounded ... Read more

A Romanian company challenged tax authority adjustments after an audit found deficiencies in its comparability study, covering royalties, support services, and strategic management fees. The tax authority replaced the study and disallowed carried-forward losses. Romania's Supreme Administrative Court ruled in favour of the tax authority in 2019, upholding the revised benchmark analysis and confirming the transfer pricing adjustments despite double taxation arguments raised by the taxpayer ... Read more

A Romanian company claimed tax deductions for costs paid to its Italian affiliate, C SpA, but failed to adequately justify its transfer prices. Following a tax audit, authorities applied the transactional net margin method to adjust the pricing. The taxpayer challenged the assessment in court. Romania's Supreme Administrative Court upheld the tax authority's position in 2016, finding the TNMM application correct and the taxpayer's appeal unfounded ... Read more