Type of court: Administrative Court of Appeal

India vs Mylan Pharmaceuticals Private, December 2022, Income Tax Appellate Tribunal, ITA No.122/Hyd/2022

blank

Mylan Pharmaceuticals is engaged in the business of trading pharmaceutical products in both domestic and export markets. It also provides business support services and research and development activities to other group companies. Following an audit, the tax authorities issued a notice of assessment which partially disallowed deductions for advertising and promotional expenses for the launch […]

Sweden vs TELE2 AB, November 2022, Court of Appeal, Case No 1298-21

blank

The Swedish group TELE2, one of Europe’s largest telecommunications operators, had invested in an entity in Kazakhstan, MTS, that was owned via a joint venture together with an external party. Tele2 owned 51% of the Joint venture and MTS was financed by Tele2’s financing entity, Tele2 Treasury AB, which, during 2011-2015, had issued multiple loans […]

India vs Google India Private Limited, Oct. 2022, Income Tax Appellate Tribunal, 1513/Bang/2013, 1514/Bang/2013, 1515/Bang/2013, 1516/Bang/2013

blank

Google Ireland licenses Google AdWords technology to its subsidiary in India and several other countries across the world. The Tax Tribunal in India found that despite the duty of Google India to withhold tax at the time of payment to Google Ireland, no tax was withheld. This was considered tax evasion, and Google was ordered […]

France vs Yazaki Systems Technologies France, October 2022, CAA de Versailles, Case No. 20VE02286

blank

Yazaki Systems Technologies France (SY France) is wholly owned by the German company SY Systems Technologie Europe GmbH, which became Yazaki Systems Technologie Europe GmbH (SY Europe) in 2013 following the acquisition of 100% of its shares by the Japanese parent company that created the group, Yazaki Corporation Japan. The group develops and distributes wiring […]

India vs Akzo Nobel India Pvt Ltd, September 2022, High Court of Delhi, ITA 370/2022

blank

The tax authorities had disallowed deductions for purported administrative services paid for by Akzo Nobel India to a group company in Singapore. The Income Tax Appellate Tribunal upheld the assessment in a Judgement issued in February 2022. An appeal was then filed by Akzo Nobel India with the High Court. Judgement of the High Court […]

India vs Sulzer Tech India Pvt Ltd, July 2022, Income Tax Appellate Tribunal, Case No ITAT No 633-MUM-2021

blank

Sulzer Tech India Pvt Ltd (the assessee) is in the business of providing design and engineering services. To that end Sulzer Management AG, an associated enterprise provided various IT and support services to Sulzer Tech India. The payment for these services had been determined based on a benchmark study where Sulzer Management AG was chosen […]

Portugal vs “L…. Engenharia e ConstruçÔes, S.A.”, June 2022, Tribunal Central Administrativo Sul, Case 1339/13.0BELRA

blank

At issue was an interest free loan granted by “L…. Engenharia e ConstruçÔes, S.A.” to a related party. The loan had been granted before the parties became related following an acquisition in 2007. The tax authorities had issued an assessment where the interest had been determined to 1.4% based on the interest rate that would […]

India vs Synamedia Limited, February 2022, Income Tax Appellate Tribunal – BANGALORE, Case No ITA No. 3350/Bang/2018

blank

Synamedia Ltd. provides open end-to-end digital technology services to digital pay television platform operators. The company has expertise in the area of providing conditional access system, interactive systems and other software solutions as well as integration and support services for digital pay TV networks. For FY 2014-15 the company filed a tax return with nil […]

Sweden vs Flir Commercial Systems AB, January 2022, Administrative Court of Appeal, Case No 2434–2436-20

blank

In 2012, Flir Commercial Systems AB sold intangible assets from a branch in Belgium and subsequently claimed a tax relief of more than SEK 2 billion in fictitious Belgian tax due to the sale. The Swedish Tax Agency decided not to allow relief for the Belgian “tax”, and issued a tax assessment where the relief […]

Latvia vs SIA Severstal Distribution, December 2021, Administrative Court of Appeal, Case No A420576312, SKA-314/2021

blank

The Revenue Service had audited Severstal Distribution for FY 2008-2009 and found that the company had purchased metal products from related companies at prices above market prices. An assessment was issued where reported losses for 2009 were reduced. During the audit, Severstal Distribution indicated to the tax authorities that it had used the transactional net […]

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

blank

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 […]

Brazil vs AES SUL Distribuidora GaĂșcha de Energia S/A, August 2021, Superior Tribunal de Justiça, CaseNÂș 1949159 – CE (2021/0219630-6)

blank

AES SUL Distribuidora GaĂșcha de Energia S/A is active in footwear industry. It had paid for services to related foreign companies in South Africa, Argentina, Canada, China, South Korea, Spain, France, Holland, Italy, Japan, Norway, Portugal and Turkey. The tax authorities were of the opinion that withholding tax applied to these payments, which they considered […]

Portugal vs “PublicaçÔes Real Estate Lda”, May 2021, Administrative Court of Appeal, Case No 959/13.8BESNT

blank

In 2007 real estate had been transferred from “G gestĂŁo imobiliĂĄria S.A.” to “PublicaçÔes Real Estate Lda”. The Portuguese tax authority issued an assessment, where the pricing of real estate had been adjusted in accordance with the arm’s length principle, based on the prices paid for real estate in the same area. “PublicaçÔes Real Estate […]

France vs Société Générale S.A., Feb 2021, Administrative Court of Appeal, Case No 16VE00352

blank

SociĂ©tĂ© GĂ©nĂ©rale S.A. had paid for costs from which its subsidiaries had benefited. The costs in question was not deducted by SociĂ©tĂ© GĂ©nĂ©rale in its tax return, but nor had they been considered distribution of profits subject to withholding tax. Following an audit for FY 2008 – 2011 a tax assessment was issued by the […]

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

blank

“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 […]

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

blank

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 […]

Austria vs S GmbH, November 2020, Verwaltungsgerichtshof, Case No Ra 2019/15/0162-3

blank

S GmbH was an Austrian trading company of a group. In the course of business restructuring, the real estate division of the Austrian-based company was initially separated from the “trading operations/brands” division on the demerger date of 31 March 2007. The trademark rights remained with the previous trading company, which was the parent company of […]

India vs Toyota Kirloskar Auto Parts Private Limited, March 2020, Income Tax Appellate Tribunal – BANGALORE, Case No IT(TP) No.1915/Bang/2017 & 3377/Bang/2018

blank

Toyota Kirloskar Auto Parts Private Limited manufactures auto parts and sold them to Toyota Kirloskar Motors Limited, another Indian corporation in the Toyota Group. In FY 2013-14 Toyota Kirloskar Auto Parts Private Limited paid a 5% royalty to the Japanese parent Toyota Motor Corporation for use of know-how. The royalty rate had been determined by application […]

Italy vs T. SpA, January 2019, Regional Tax Commission, Case No 25/01/2019 n. 376/3

blank

It is up to the Tax Administration to prove the existence of transactions between related companies with clear discrepancies compared to transactions of the same kind on an independent market, while the taxpayer bears the burden of proving that the transactions took place for market values to be considered normal. This is the division of […]

Netherlands vs “Zinc-Smelter Restructuring BV”, September 2017, Rechtbank ZWB, No BRE 15/5683

blank

A Dutch company was engaged in smelting of zinc. The business was then restructured, for which the company received a small compensation. Dutch tax authorities disagreed with both the amount of compensation payment and the arm’s-length remuneration of the post restructuring manufacturing activities. Until 2003 the Dutch Company was a fully fledged business. The company owned the assets and controlled […]

Brazil vs Syngenta Protecao de Cultivos LTDA, September 2016, CARF Case No 16561.000199/2008­16

blank

Syngenta had been issued a tax assessment related to two tax violations: (1) incorrect ascertainment of the PRL 60, in disagreement with IN SRF no. 243, of 2002, in the ascertainment of transfer prices, and (2) omission of revenues arising from inventory differences. Syngenta filed an opposition claiming (1) illegality of IN SRF 243, of […]

Italy vs F. S.p.A., February 2016, Regional Tax Commission, Case No 02/02/2016 n. 258/11

blank

The Provincial Tax Commission had upheld F. S.p.A.’s appeal and set aside the assessment made by the tax authorities, both because it had failed to prove tax avoidance and because it had used the TNMM (Transactional Net Margin Method) method, which the tax authorities advised against in favour of the CUP (Comparable Uncontrolled Price) method, […]

Brazil vs LG Electronics Do Brasil LTDA., May 2016, Administrative Court of Appeals, Case No 1302-001,162

blank

LG Electronics Do Brasil LTDA imported goods from a related company and used the “resale price minus” method to determine the arm’s length price. Following an audit, an assessment was issued for FY 2006 and 2007 where the tax authorities rejected the pricing method chosen by LG Electronics. An appeal was filed by LG Electronics […]

France vs. Ballantine’s Mumm Distribution, Dec 2012, CAA no 10PA00748

blank

Ballantine’s Mumm Distribution (later – SociĂ©tĂ© de participations et d’Ă©tudes des boissons sans alcool or SOPEBSA), is a French wholesaler of beverages, and was, until 1999, a fully fledged distributor on the French market of the products from the English company Allied Domecq Spirits and Wine Limited (ADSW). Both companies are owned by the Allied […]

India vs SC Enviro Agro India Pvt. Ltd, 2012, November 2012, Income Tax Appellate Tribunal, ITA Nos.2057 & 2058

blank

SC Enviro Agro India is a manufacturer of household insecticides and pesticides and had entered into a technology license agreement with a related party – SCCL Japan – and it also purchases the requirement of intermediates from the said company only.  In the years in question, it has purchased intermediates and sold the products to the […]

France vs. SA Astra Fralib (SAS Unilever France holding), December 2011, CAA no 10VE02491

blank

Following an unfavorable decision form the Administrative Court, the Tax Authorities asked the Court of Appeal to: 1°) to annul judgment No. 0703258 of 29 April 2010 by which the Administrative Court of Cergy-Pontoise discharged SAS Unilever France holding of its corporate tax assessments of EUR 27,188 for the financial year ended 31 December 1996 […]

Austria vs A & W AG, October 2009, Verwaltungsgerichtshof, Case No 2006/13/0116

blank

A & W AG, a company based in Germany, had maintained a permanent establishment in Austria which provided “distribution and support of software” services. No profits had been attributed to the Austrian permanent establishment. An assessment was issued where profits for FY 1998 to 2002 had been determined by the tax authorities using the cost […]

France vs SA Borsumij Y France, Feb 1997, Adm Court of appeal, No 94PA00511

blank

The administration found that the reimbursement of a charge represented a transfer of profits abroad where the French company has not substantiated the benefit of the services which the French company could perform itself. Incomplete documents submitted by the company was not considered proof of the purported benefits. This analysis was confirmed by the French […]

France vs Reynolds Tobacco, Nov 1990, Administrative Court of Appeal, Case N° 89PA01172

blank

In Reynolds Tobacco, the 2%-3% commission received was considered arm’s-length, even though competitors received 8% for providing similar services. The services provided by the French company were sufficiently different, and this justified the lower commission rate charged. Excerpt from the Judgement “…by virtue of a contract concluded between the two companies on 14 December 1976, […]