In the present case, the tax authorities had concluded that Article 13(4) of the Double Taxation Convention with Spain did not prevent the Chilean State from taxing indirect transfers. On this basis, the tax authorities determined that capital gains resulting from an indirect transfer were fully taxable in Chile. An action brought by Inversiones Capital […]
The US group, Avery Dennison, manufactures and distributes labelling and packaging materials in more than 50 countries around the world. The remuneration of the distribution and marketing activities performed Avery Dennison Chile S.A. had been determined to be at arm’s length by application of a “full range” analysis based on the resale price minus method. […]
The US group, Avery Dennison, manufactures and distributes labelling and packaging materials in more than 50 countries around the world. The remuneration of the distribution and marketing activities performed Avery Dennison Chile S.A. had been determined to be at arm’s length by application of a “full range” analysis. Furthermore, surplus capital from the local company […]
In 2009, Walmart acquired a majority in Distribución y Servicio D&S S.A., Chile’s leading food retailer. With headquarters in Santiago, Walmart Chile operates several formats including hypermarkets, supermarkets and discount stores. Following an audit by the tax authorities related to FY 2015, deduction of interest payments in the amount of CH$8.958,304,857.- on an “intra-group loan” […]
Monsanto Chile, Since 2018 a subsidiary in the Bayer group, had been issued a tax assessment related to FY 2009 and 2010 resulting in additional taxes of approximately $800.000.000. and penal interest of 1,5% per month in an amount of $2.216.759.197. Monsanto filed an appeal in regards to the penal interest of $2.216.759.197. In the […]
Monsanto Chile – since 2018 a subsidiary of Bayer – is engaged in production of vegetable seeds and Row Crop seeds. The company uses its own local farmers and contractors, employs some 250 people and hires a maximum of 2,000 temporary workers in the summer months. It receives parental seed from global planners in the […]
Sociedad de Ahorro Homar Ltda. is a holding company and owns shares, receive dividends, participate as a partner, shareholder or co-owner in companies of any nature, and manage the assets acquired. In 2011 Ahorro Homar entered into a written contract with a related party, Málaga Asesorías e Inversiones Ltda., by virtue of which the latter […]
Maderas Anchile exported wood chips to a Japanese corporation, Itochu, which indirectly owned 9.8499% of the shares in Maderas Anchile through another company, Forestal Anchile. At issue was whether these transactions between Maderas Anchile and Itochu were controlled. Based on the wording of the transfer pricing provisions in force at the time (Article 38 of […]
Whether the rule applicable to the specific situation had to be in force at the time the taxable event – in this case to the sales of the land, which were made during 2008 , 2009, 2010 and 2011, The time when the former Article 17 No. 8 of the Income Tax Law was in […]
The Tax Court accepted a claim filed against an assessments resulting from the application of transfer pricing rules. MMM Limitada indicated that the Internal Revenue Service was unable to exercise its powers to challenge the prices of exports made, since the companies participating in the disputed transactions were not related. It added that the Revenue […]
