A Dutch company, Zinc Smelter B.V., transferred part of it’s business to a Swiss group company in 2010.
In dispute was whether the payment for the transferred activities had been set at arm’s length, and whether the cost-plus remuneration applied to the Dutch company after the business restructuring constituted an arm’s length remuneration for the remaining activities in the company.
The case had previously been presented before the lower court where a decision had been issued in October 2017.
After hearings in the Court of Appeal, Zinc Smelter B.V. and the Dutch tax authorities reached a settlement which was laid down in the decision.
According to the agreement the profit split method was the correct method for determining the arm’s length remuneration of the Dutch company after the restructuring.