Category: Local Country Guidelines

Spain vs Varian Medical Systems Iberica S.L., October 2021, Audiencia Nacional, Case No SAN 4241/2021 - ECLI:ES:AN:2021:4241

Spain vs Varian Medical Systems Iberica S.L., October 2021, Audiencia Nacional, Case No SAN 4241/2021 – ECLI:ES:AN:2021:4241

Varian Medical Systems Iberica S.L. is the Spanish subsidiary of the multinational company Varian Medical Systems and carries out two types of activities – distribution and after-sales services. The products sold was purchased from related entities: Varian Medical Systems Inc., Varian Medical Systems UK Ltd., Varian Medical Systems International AG and Varian Medical Systems HAAN GmbH. The remuneration of Varian Medical Systems Iberica S.L. had been determined by application of the net margin method for all transactions and resulted in a operating margin of 2.86% in 2005 and 2.75% in 2006. In 2010 an audit were performed by the tax authorities for FY 2005 and 2006, which resulted in an adjustment. The tax authorities accepted the net margin method, but made various corrections in its application. The adjustments made by the tax authorities resulted in a operating margin of 6.45% in the two years under ... Continue to full case
Italien Transfer Pricing Guidelines, Ministerial Decree of 14 May 2018, published in the Official Gazette no. 118/2018

Italien Transfer Pricing Guidelines, Ministerial Decree of 14 May 2018, published in the Official Gazette no. 118/2018

Italien legislation on transfer pricing is contained in Article 110, paragraph 7 of the Consolidated Income Tax Act, where the first sentence states that “the components of income deriving from transactions with companies not resident in the territory of the State, which directly or indirectly control the company, are controlled by it or are controlled by the same company that controls the company, are determined by reference to the terms and prices that would have been agreed between independent parties operating in conditions of free competition and in comparable circumstances, if an increase in income is the result”. The rule was last amended by Article 59 of Decree-Law No. 50/2017 which, as far as it is of interest, replaced the reference to “normal value” with the “arm’s length principle”, referred to in the aforementioned Article 9 of the OECD Model Convention, in determining the value ... Continue to full case
Brazil vs Syngenta Protecao de Cultivos LTDA, September 2016, CARF Case No 16561.000199/2008­16

Brazil vs Syngenta Protecao de Cultivos LTDA, September 2016, CARF Case No 16561.000199/2008­16

Syngenta had been issued a tax assessment related to two tax violations: (1) incorrect ascertainment of the PRL 60, in disagreement with IN SRF no. 243, of 2002, in the ascertainment of transfer prices, and (2) omission of revenues arising from inventory differences. Syngenta filed an opposition claiming (1) illegality of IN SRF 243, of 2002; (2) undue inclusion of freight, insurance and taxes in the price charged. (3) inadequacy of the revenue omission and (4) inapplicability of default interest on ex-officio fine. In the lower court, the opposition was partially granted, in order to partially exempt the assessments related to the omission of revenues arising from inventory differences. Due to the exonerated tax credit, the President of the Panel then filed an ex-officio appeal. A voluntary appeal was filed by Syngenta, returning the matters presented via opposition, which was heard by the second instance ... Continue to full case