Category: Valuation – DCF and CUT/CUPs
In transfer pricing, valuation of (intangibles) assets are often based on a prior acquisitions of shares in the relevant business – CUT/CUPs.
In situations where reliable CUP for a transfer of assets cannot be identified, it may also be possible to use valuation techniques to estimate the arm’s length price for assets transferred between associated enterprises.
In particular, the application of income based valuation techniques, premised on the calculation of the discounted value of projected future income streams or cash flows derived from the exploitation of the intangible being valued, may be useful.
Depending on the facts and circumstances, valuation techniques may be used by taxpayers and tax administrations as a part of one of the five OECD transfer pricing methods described in Chapter II, or as a tool that can be usefully applied in identifying an arm’s length price.

India vs. M/s Redington (India) Limited, December 2020, High Court of Madras, Case No. T.C.A.Nos.590 & 591 of 2019

Denmark vs. Software A/S, September 2020, Tax Court, Case no SKM2020.387.LSR

Denmark vs Engine branch, January 2020, Tax Tribunal, Case No SKM2020.30.LSR

Israel vs Broadcom, December 2019, Lod District Court, Case No 26342-01-16

US vs Cavallaro, October 2019, TC Memo 2019-144

Israel vs Broadcom, Aug 2019, Israeli Supreme Court, Case No 2454/19

Norway vs Saipem Drilling Norway AS, August 2019, Borgarting lagmannsrett, Case No LB-2018-55099 – UTV-2019-698

US vs Amazon, August 2019, US Court of Appeal Ninth Circut, Case No. 17-72922

Uruguay vs Philips Uruguay S.A., July 2019, Tribunal de lo Contencioso Administrativo, Case No 456/2019

Norway vs Normet Norway AS, March 2019, Borgarting Lagmannsrett, Case No 2017-202539

Norway vs Cytec, March 2019, Borgarting Lagmannsrett, Case No 2017-90184

Luxembourg vs Lux SARL, December 2018, Administrative Court, Case No 40455

Denmark vs Water Utility Companies, November 2018, Danish Supreme Court, Case No SKM2018.627.HR and SKM2018.635.HR

Norway vs. A AS, October 2017, Tax Tribunal, NS 71/2017

France vs. Havas, July 2017, CE, No 400644

US vs. Amazon, March 2017, US Tax Court, Case No. 148 T.C. No 8

Accenture settles Swiss tax claim for $200m

Luxembourg vs LuxCo TM, December 2015, Administrative Court, Case No 33611

Sweden vs Ferring AB, June 2011, Swedish Court, Case no 2627-09
