In the case of The Absolut Company AB the Swedish tax administration had issued an assessment of additional SEK 247 mio. taxable income. The assessment was based on the position that (1) The Absolut Company AB had been selling below the arm’s length price to an US group company – The Absolut Spirit Company Inc. (ASCI), and (2) that acquired distribution services from ASCI that had been priced above the arm’s length price.
The Swedish Supreme Administrative Court has now ruled in favor of The Absolute Company AB.
According to the Supreme Administrative Court the Swedish Tax Agency did not fulfill the burden of proof.
The Supreme Administrative Court further states that the full range of results in the benchmark study could be applied and that a multiple year analysis of the tested party data can be used to support an arm’s length result.Sweden vs Absolut AB 2019