A Russian subsidiary of the Mazda Motors Group had been claiming losses.
In the opinion of the tax authority, the losses incurred by the Russian distributor were mainly due to non-arm’s length transfer pricing within the group of companies. An assessment was issued where the pricing had been determined using the Resale Price Method.
Decision of the Russian Arbitration Court
“Having evaluated the arguments of the parties and the evidence presented in the case, taking into account the provisions of Art. 71 APC RF, the appeal court considers the conclusions of the court of first instance as motivated, consistent with the circumstances of the case and the requirements of the law.
In the presence of these circumstances, the claims claimed by the company were rightly rejected by the court of first instance.
Thus, the decision of the court is legal and justified, corresponds to the materials of the case and the current legislation, in connection with which it is not subject to cancellation.
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