Countries: El Salvador

El Salvador vs “E-S Cosmetics Corp”, December 2020, Tax Court, Case R1701011.TM

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“Cosmetics Corp” is active in wholesale of medicinal products, cosmetics, perfumery and cleaning products. Following an audit the tax authorities issued an assessment regarding the interest rate on loans granted to the related parties domiciled in Cayman Islands and Luxembourg. An appeal was filed by the company. Judgement of the Tax Court The court partially upheld the assessment. Excerpt “In this sense, it is essential to create a law that contains the guidelines that the […]

El Salvador vs “E-S. Sales Corp”, December 2020, Tax Court, Case No R1705038.TM

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Following an audit the tax authorities issued an assessment regarding various intra group costs of sales deducted for tax purposes by “E-S. Sales Corp”. An appeal was filed by the company. Judgement of the Tax Court The court partially upheld the assessment, but in regards of application of the OECD Transfer Pricing Guidelines, the assessment was set aside. For the years in question the OECD guidelines had not yet been implemented by El Salvador. Excerpt […]

El Salvador , May 2018, Supreme Court, Case No 96-2014

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In this case a complaint was filed requesting that Legislative Decrees Nos. 762, 763 and 764, approved at the Plenary Session of the Legislative Assembly on 30-VIII-2014, which ended on 31-VII-2014, be declared unconstitutional on procedural grounds, for the alleged violation of art. 135 inc. 1 of the Constitution of the Republic. The fundamental reason for the declaration of unconstitutionality is that there was no real possibility for parliamentary deliberation and discussion. Decision of the […]

El Salvador vs Distribuidora Salvadorena de Petroleo S.A. DE C.V., September 2013, Supreme Court, Case No 386-2010

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Distribuidora Salvadorena de Petroleo S.A. DE C.V. (DSP), is active in “the wholesale and retail marketing of oil, derivatives, gas, lubricants, additives and energy in general. Following an audit the tax authorities issued an assessment regarding sale of oil. According to the authorities the prices determined by DSP for oil sold to a related party – Nejapa Power Company L.L.C. – had not been at arm’s length. An appeal was filed by the DSP. Judgement […]