Legal issue: VAT/Customs

Italy vs “VAT ALFA S.p.A.”, December 2021, Tax Ruling of the Italian Revenue Agency, Case No 884/2021

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A ruling was issued by the Italian Revenue Service on the following question on the VAT treatment of Transfer Pricing adjustments. 1) an internal CUP (Compared Uncontrolled Price) methodology is used, on the basis of which, net of appropriate adjustments, the price of goods charged by ALFA S.p.A. to its EU affiliates is compared with […]

Brazil vs GKN do Brasil LTDA, December 2021, Administrative Court of Appeal (CARF), Case No. 11080.724128/2015-21

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In this case the assessed company had imported goods from a related party. It did not fail to declare the relation to the exporter, but indicated in the completion of its import declarations that this relation did not influence the price. It therefore adopted the first method of customs valuation; the transaction value, to establish […]

Italy vs “VAT Group X”, November 2018, Tax Ruling of the Italian Revenue Agency, Case No 60

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A ruling was issued by the Italian Revenue Service on the following question on the VAT treatment of Transfer Pricing adjustments. “Alfa represents that it is part of a multinational Group (hereinafter, the “Group”). The Group is implementing a new integrated development plan, aimed at the joint creation of products and platforms necessary for the […]

Europe vs Hamamatsu, Dec 2017, European Court of Justice, Case No C-529-16

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The case concerns the effect of transfer pricing year-end adjustments on VAT – the relationship between transfer pricing and the valuation of goods for customs (VAT) purposes (Hamamatsu case C-529/16). Hamamatsu Photonics Deutschland GmbH (Hamamatsu) is a German subsidiary of the Japanese company Hamamatsu, and it acts as a distributor of optical devices purchased from […]

Spain vs. Refrescos Envasados S.A., November 2009, Supreme Court, Case nr. 3582/2003

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Refrescos Envasados, S.A. – a Coca-Cola subsidiary in Spain – bought soft drink concentrate manufactured by Coca-Cola companies in Ireland and France. According to the tax authorities the prices paid for the concentrate were above market prices. Hence, an assessment was issued where the prices for the concentrate had been lowered resulting in additional taxable […]

Australia vs Estee Lauder, July 1991, Federal Court of Australia, Case No [1991] FCA 359

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An Australian subsidiary of Estee Lauder paid a licence fees to licensor on sales of cosmetics in Australia whether imported or made locally. At issue is whether this fees should be taken into account in determining price and thus “transaction value” of goods for purposes of assessing customs duty. Judgement of the Federal Court The […]