Category: Non-Recognition and Recharacterisation
An intercompany transaction as accurately delineated may be disregarded, and if appropriate, replaced by an alternative transaction, where the arrangements made in relation to the transaction, viewed in their totality, differ from those which would have been adopted by independent enterprises behaving in a commercially rational manner in comparable circumstances, thereby preventing determination of a price that would be acceptable to both of the parties taking into account their respective perspectives and the options realistically available to each of them at the time of entering into the transaction. It is also relevant to consider whether the MNE group as a whole is left worse off on a pre-tax basis since this may be an indicator that the transaction viewed in its entirety lacks the commercial rationality.

Israel vs Medingo Ltd, May 2022, District Court, Case No 53528-01-16

Denmark vs Maersk Oil and Gas A/S, March 2022, Regional Court, Case No BS-41574/2018 and BS-41577/2018

Poland vs “X-TM” sp. z o.o., March 2022, Administrative Court, SA/PO 1058/21

Italy vs BenQ Italy SRL, March 2021, Corte di Cassazione, Sez. 5 Num. 1374 Anno 2022

Hungary vs G.K. Ktf, December 2021, Court of Appeals, Case No. Kfv.V.35.306/2021/9

Denmark vs EAC Invest A/S, October 2021, High Court, Case No SKM2021.705.OLR

Israel vs Sephira & Offek Ltd and Israel Daniel Amram, August 2021, Jerusalem District Court, Case No 2995-03-17
Luxembourg vs “Lux PPL SARL”, July 2021, Administrative Tribunal, Case No 43264

Poland vs A S.A., June 2021, Provincial Administrative Court, Case No I SA/Gl 1649/20

Germany vs Lender GmbH, May 2021, Bundesfinanzhof, Case No I R 62/17

Germany vs A… GmbH, March 2021, BUNDESVERFASSUNGSGERICHT, Case No 2 BvR 1161/19

Canada vs Cameco Corp., February 2021, Supreme Court, Case No 39368.

Portugal vs “B Lender S.A”, January 2021, Supremo Tribunal Administrativo, Case No JSTA000P26984

Netherlands vs X B.V., December 2020, Supreme Court (Preliminary ruling by the Advocate General), Case No 20/02096 ECLI:NL:PHR:2020:1198

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

Romania vs Lender A. SA, December 2020, Supreme Court, Case No 6512/2020

Israel vs The Barzani Brothers (1974) Ltd., Oktober 2020, Jerusalem Court of Appeal, Case No 54727-02-17

Canada vs AgraCity Ltd. and Saskatchewan Ltd. August 2020, Tax Court, 2020 TCC 91

Peru vs. “P Services”, July 2020, Tax Court, Case No 03052-5-2020
