Countries: Argentina

Argentina vs Molinos Río de la Plata S.A., September 2021, Supreme Court, Case No CAF 1351/2014/1/RH1

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In 2003 Molinos Argentina had incorporated Molinos Chile under the modality of an “investment platform company” regulated by Article 41 D of the Chilean Income Tax Law. Molinos Argentina owned 99.99% of the shares issued by Molinos Chile, and had integrated the share capital of the latter through the transfer of the majority shareholdings of […]

Argentina vs Nidera S.A., June 2021, Supreme Court, Case No CAF 38801/2013/CA2-CS2

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Nidera S.A. exported commodities (cereals, oilseeds etc.) via group traders domiciled on the British Virgin Islands. In the absence of evidence to the contrary, in transactions involving entities domiciled in low-tax jurisdictions, it was presumed that prices had not been agreed in accordance with the arm’s length principle. The tax authorities issued an adjustment by […]

Argentina vs Transportadora de Energía SA, December 2019, Supreme Court, Case No CAF 39109/2014/3/RH2

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The tax authorities had recharacterized debt to equity and disallowed deductions for interest payments etc. Decision of the Supreme Court The Court decided in favour of Transportadora de Energía SA and set aside the debt to equity re-characterisation. The court also points to the relevance of transfer pricing studies. The Court noted that the tax […]

Argentina vs Volkswagen Argentina S.A., December 2019, Court of Appeal, Case No CAF 057064/2013/CA001 – CA002

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The case of Volkswagen Argentina S.A. revolves around benchmarking and comparability adjustments. In the transfer pricing analysis Volkswagen adjusts the results of the tested party (local entity) for extraordinary losses due to local economic conditions. The Federal Court of Appeals supports the adjustment to the results of the tested party and also the approach of […]

Argentina vs. Nike, June 2019, Court of Appeal, Case No TF 24495-I

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The tax authorities had partly disallowed amounts deducted by Nike Argentina for three expenses; royalties for use of trademarks and technical assistance, promotional expenses for sponsorship of the Brazilian Football Confederation, and commissions of Nike Inc. for purchasing agents. Issue one and two was dropped during the process and the remaining issue before the tribunal […]

Argentina vs. Nike, August 2017, Tribunal Fiscal de la Nación, Case No 24.495-I

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The tax authorities had partly disallowed amounts deducted by Nike Argentina for three expenses; royalties for use of trademarks and technical assistance, promotional expenses for sponsorship of the Brazilian Football Confederation, and commissions of Nike Inc. for purchasing agents. Issue one and two was dropped during the process and the remaining issue before the tribunal […]

Argentina vs Nidera S.A., March 2016, National Court, Case No CAF 38801/2013/CS1-CA1

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Nidera S.A. exported commodities (cereals, oilseeds etc.) via group traders domiciled on the British Virgin Islands. In the absence of evidence to the contrary, in transactions involving entities domiciled in low-tax jurisdictions, it was presumed that prices had not been agreed in accordance with the arm’s length principle. The tax authorities issued an adjustment by […]

Argentina vs Boehringer Ingelheim S.A. , April 2012, Tribunal Fiscal de la Nación, Case No 26713

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The tax authorities had not contested the method (TNMM) used by the company to assess their transactions with related or affiliated parties. The dispute was therefore limited to certain aspects of the application of the methodology. Boehringer had used ROS indicator (operating profit margin) which the tax authorities accepted for the resale function. But for […]

Argentina vs Aventis Pharma SA, February 2010, Tribunal Fiscal de la Nación, Case No 29,083-I

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The principal activity of Aventis Pharma is manufacturing of pharmaceutical products and the secondary activity is the wholesale of pharmaceutical products; In FY 2000 the company carried out various transactions with related companies and based on a transfer pricing study the company concluded that profits were consistent with those obtained by comparable independent parties. Following […]

Argentina vs Laboratorios Bagó S.A. , November 2006, Tribunal Fiscal de la Nación, Case No 16/11/06

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In the case of Laboratorios Bagó S.A. the National Tax Court, rejected an appeal raised on the grounds that the use of information from third party companies by the tax administration violated the tax secrecy enshrined in Article 101 of Law No. 11,683. Decision of the Tax Court The Court stated that the information used […]