Countries: Ecuador

Ecuador vs Cartorama C.A., May 2016, National Court, Case No. 0119-2015

blank

Cartorama C.A. had been granted extensive credits by a related party Universal Paper S.A. The tax administration (SRI) claimed that no supplier would grant such credits to Cartorama given the company’s financial situation. Hence the loan was instead considered a equity contribution from Universal Paper S.A. and tax deductions claimed by Cartorama C.A. for interest payments for fiscal years 2005 and 2006 were disallowed. The Company disagreed with the assessment at brought the case to […]

Ecuador vs JFC Ecuador S.A., November 2014, National Court, Case No. 488-2012

blank

JFC Ecuador is active in coordination and logistic operations for the transfer of Ecuadorian fruit to related parties in the Russian JFC Group. Following an audit the tax authorities issued an assessment where the prices of these transactions had been determined based on quoted prices issued by the authorities in the SOPISCO NEWS database. However, according to JFC Ecuador, SOPISCO NEWS does not correspond to a publicly available international trade exchange or price database. On […]