Type of court: Federal Administrative Court

Austria vs “Bf AG”, June 2022, Bundesfinanzgericht, Case No RV/7102083/2009

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“Bf AG” had outstanding trade receivables from a sister company, “Leuchten GmbH”. These receivables were non-interest bearing. Following an audit for FY 2002-2004 the tax authorities issued an assessment where additional corporate income tax for FY 2002 to 2004 had been assessed. According to the tax authorities the lack of interest on the outstanding receivables […]

Austria vs C-Group, March 2022, Bundesfinanzgericht, Case No RV/7102553/2021

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C is the parent company of the C-group which is involved in the construction business. C is part of a joint venture and for the expansion of these activities a framework agreement on shareholder loans was concluded. Under the agreement two shareholder loans were granted: ***loan*** II totalling 212,935,716.33 euros and ***loan*** III totalling 446,000,000 […]

Austria vs “ACQ-Group”, February 2022, Bundesfinanzgericht, Case No RV/7104702/2018

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“ACQ-Group” had acquired the shares in foreign subsidiaries and financed the acquisition partially by intra group loans. Furthermore, in the years following the acquisition, goodwill amortisations were deducted for tax purposes. The tax authorities issued an assessment where the interest rate on the loans had been reduced, and where costs related to external financing and […]

Spain vs Sierra Spain Shopping Centers Services S.L.U., January 2022, National Court, Case No SAN 151/2022 – ECLI:ES:AN:2022:151

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Sierra Spain Shopping Centers Services S.L.U. is part of a multinational group that manages shopping centres. Sierra Spain had deducted expenses for services rendered from a related party in Portugal. According to Sierra Spain, the services were related to strategic management and marketing. The tax authorities considered the expenses non-deductible and issued an assessment of […]

Spain vs Varian Medical Systems Iberica S.L., October 2021, Audiencia Nacional, Case No SAN 4241/2021 – ECLI:ES:AN:2021:4241

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Varian Medical Systems Iberica S.L. is the Spanish subsidiary of the multinational company Varian Medical Systems and carries out two types of activities – distribution and after-sales services. The products sold was purchased from related entities: Varian Medical Systems Inc., Varian Medical Systems UK Ltd., Varian Medical Systems International AG and Varian Medical Systems HAAN […]

Spain vs Comeresa Prensa S.L.U., September 2021, Audiencia Nacional, Case No SAN 3857/2021 – ECLI:ES:AN:2021:3857

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VOCENTO, S.A. is the parent company of a multinational publishing group. The registered office of VOCENTO, S.A. is in Bizkaia and it is subject to the regulations of this Territory regarding Corporate Income Tax. COMERESA PRENSA, S.L.U. is a wholly-owned subsidiary of VOCENTO and holds most of the shares in regional press publishing companies held […]

Austria vs. “Yogo Food-Distributor”, August 2021, Bundesfinanzgericht, Case No RV/3100163/2018

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“Yogo Food-Distributor” is a subsidiary in the “Yogo Group” and trades in spices and canned meat and vegetables from the territory of the former Yugoslavia. The main sales markets are Austria and Germany (90%), the remainder being distributed among France, Scandinavia, Great Britain and the Benelux countries. Following an audit the tax authorities issued an […]

Spain vs DIGITEX INFORMÁTICA S.L., February 2021, National Court, Case No 2021:629

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DIGITEX INFORMATICA S.L. had entered into a substantial service contract with an unrelated party in Latin America, Telefonica, according to which the DIGITEX group would provide certain services for Telefonica. The contract originally entered by DIGITEX INFORMATICA S.L. was later transferred to DIGITEX’s Latin American subsidiaries. But after the transfer, cost and amortizations related to […]

Spain vs BIOMERIEUX ESPAÑA SA, February 2021, National Court, Case No 2021:416

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BIOMERIEUX ESPAÑA SA is active in the business of clinical and biological analysis, production, distribution, training and technical assistance. Likewise, the provision of computer services and, in particular, the computer management of laboratories. Following an audit the tax authorities found that the controlled prices agreed for the acquisition of instruments and consumables between bioMérieux España […]

Switzerland vs “Contractual Seller SA”, May 2020, Federal Administrative Court, Case No A-2286/2017

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C. SA provides “services, in particular in the areas of communication, management, accounting, management and budget control, sales development monitoring and employee training for the group to which it belongs, active in particular in the field of “F”.   C. SA is part of an international group of companies, G. group, whose ultimate owner is […]

Germany vs “Asset management Gmbh”, April 2013, Supreme Administrative Court, Case No I R 45/11

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Asset management Gmbh was a subsidiary of a Luxembourg investment fund management company. The German company paid substantial fees to a Luxembourg service company. Both companies in Luxembourg were wholly-owned by a Luxembourg holding company. Asset management Gmbh was obliged to follow the policies of the fund. These could only be revised by a two-thirds […]

Germany vs “Loss Distributor GmbH”, April 2005, Bundesfinanzhof, I R 22/04

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The Bundesfinanzhof confirmed that losses incurred by a simpel distribution entity over a longer period of time trigger a rebuttable presumption in Germany that transfer prices have not been at arm’s length. A German company, Loss Distributor GmbH, imported goods from their Swiss sister company S-AG and had made continious losses over a period of time. The tax […]