A Spanish subsidiary of a multinational consumer goods group was audited for 2015–17 over contract manufacturing services, intra-group loans, and cash pooling arrangements. The tax authority rejected part of the taxpayer's comparable set and adjusted margins to the median, also applying group credit ratings and substituting Euribor with Eonia. Spain's TEAC largely upheld the authority's position in its October 2025 ruling ... Read more

A Korean subsidiary of a Dutch electronics multinational was assessed for excess transfer prices paid to foreign related parties across medical equipment, household appliances, and lighting segments. Tax authorities aggregated maintenance services with product sales and selected comparables based on domestic service businesses. The Korean Supreme Court remanded the case for reexamination in 2025, finding the comparable selection methodology required further review ... Read more

An Italian company receiving intra-group services was assessed for additional taxable income after tax authorities applied TNMM benchmarking and set arm's length profitability at the third quartile. The taxpayer challenged the comparability of selected European companies, citing differences in business models and asset structures, including fleet ownership. The Italian Tax Court ruled in favour of the taxpayer in September 2025, finding the benchmark study fundamentally flawed ... Read more

Nestlé Zambia Limited recorded continuous losses, prompting the Zambia Revenue Authority to issue a transfer pricing assessment. The Tax Appeals Tribunal had invalidated the assessment over unsuitable comparables and methods. On appeal, the Zambia Supreme Court ruled in 2025 that the burden of proof rests with the taxpayer to disprove assessments, deciding largely in favour of the ZRA while addressing comparability and distributor classification issues ... Read more

Sony India faced transfer pricing adjustments across multiple assessment years covering AMP expenses, royalty payments, and advisory services. India's Income Tax Appellate Tribunal held that neither the Bright Line Test nor intensity adjustments are permissible benchmarking methods under the Income Tax Act, deleting both AMP and royalty adjustments. The Tribunal also directed revisions to the comparables set for advisory services, deciding the case mostly in Sony's favour ... Read more

Hitachi Solutions India excluded goodwill amortisation from operating costs in its transfer pricing comparability study, treating it as a non-operating capital item. The Indian tax authority included it, reducing the profit level indicator. The Chennai Income Tax Appellate Tribunal ruled in the taxpayer's favour in 2025, holding that goodwill amortisation arises from a capital transaction and must be excluded from operating expenses to preserve comparability under the transactional net margin method ... Read more

A Luxembourg company reduced its 12% intragroup loan rate to 6% and waived accrued interest on loans to its French subsidiary in financial distress. The tax authority requalified the waiver as a hidden capital contribution and excess interest deductions as hidden dividends. The Administrative Tribunal upheld the assessment in 2025, finding no evidence an independent lender would have accepted the restructured terms and noting the absence of an updated transfer pricing study ... Read more

EET Group A/S, a Danish IT components reseller, faced transfer pricing adjustments for 2010–2012 after tax authorities claimed its distribution companies earned more than comparable low-risk distributors. The Danish Supreme Court upheld the Court of Appeal's ruling in favour of the taxpayer, finding the transfer pricing documentation was not significantly deficient and that margins falling outside the interquartile range alone did not prove non-arm's length pricing ... Read more

A Korean acrylic-resin manufacturer was assessed for FY 2020–2022 across multiple related-party transactions, including sales to a sister company, seconded employee costs, underpriced guarantee fees, and excessive technical support fees. The company argued all transactions were arm's length and supported by comparability analyses. The Review Board decided mostly in favour of the tax authority in April 2025, upholding the bulk of the adjustments ... Read more

A Korean limited risk distributor importing and selling vehicles incurred substantial losses between 2017 and 2021 following a regulatory sales suspension, undertaking market penetration measures funded partly by parent reimbursements. The tax authority disputed the treatment of those compensations as non-operating income. The National Tax Tribunal upheld the authority's position in 2025, ruling that a limited risk distributor cannot bear market penetration costs and that parent reimbursements must be classified as operating income under the TNMM ... Read more

A Colombian emerald producer used the CUP method to justify related-party sales prices, relying on independent appraiser valuations as comparables. The tax authority rejected this approach and applied TNMM using a cost-based profit level indicator, adjusting income to the benchmarking median. The Council of State upheld the assessment in April 2025, confirming that appraiser valuations do not constitute comparable uncontrolled prices under the CUP method ... Read more

A Danish life-saving equipment manufacturer sold products to foreign subsidiaries at lower prices than to unrelated distributors. The tax authority challenged the pricing using TNMM and a benchmark study applying the interquartile range and median adjustment. The district court initially overturned the assessment, but Denmark's Court of Appeal reversed that decision in February 2025, upholding the tax authority's arm's length adjustment ... Read more

A Ukrainian wallpaper manufacturer challenged tax assessments covering FY 2013–2015, where authorities insisted only partial-year data should be used to calculate TNMM profit level indicators for controlled transaction periods. The company argued full-year figures were appropriate given the seasonal nature of wallpaper demand and the limitations of comparables databases. Ukraine's Supreme Administrative Court ruled in favour of the taxpayer in January 2025, confirming that annual financial data was the correct basis for the benchmarking analysis ... Read more

A Spanish tyre distributor claimed its intra-group purchases from its German parent used the CUP method, arguing prices matched third-party supplier rates. The tax authority rejected this, applying TNMM with EU car parts wholesaler comparables and adjusting profits to the median. The Audiencia Nacional in 2024 largely upheld the tax authority, finding the CUP application inconsistent and approving the TNMM benchmark, while partially allowing the taxpayer's appeal ... Read more

Argentina's tax authority AFIP excluded R&D, advertising, and commercial costs from comparable companies' financials in Nestlé's TNMM transfer pricing analysis for FY 2009, inflating their margins and increasing Nestlé's taxable income. The Supreme Court found the appellate court had arbitrarily failed to engage with Nestlé's core arguments, violating its constitutional right to defence, and annulled the lower court decision, remanding the case for reconsideration ... Read more

Colombia's Supreme Administrative Court ruled mostly in favour of ABB Ltda in a dispute over the tax authority's rejection of five comparables from a TNMM benchmark study. The court reinstated four of the five excluded companies, finding insufficient grounds for their removal, and only upheld the exclusion of Dulhunty Power Ltd. due to significant intangibles. Recalculating the interquartile range, the court confirmed that the taxpayer's transactions fell within the arm's length range and restored the disallowed expenses ... Read more

A Swiss pharmaceutical company, restructured as a limited risk distributor following acquisition by a Canadian group, reported a -21.8% operating margin in 2018 while claiming a three-year average of 1.2% satisfied arm's length requirements. The tax authority adjusted the 2018 margin to 1.1%, adding CHF 8.9 million to taxable profit. Switzerland's Administrative Court upheld the adjustment in 2024, ruling that Swiss periodicity principles require annual profit assessment and rejecting retrospective multi-year margin smoothing ... Read more

A Polish bedding textiles producer sold goods to a related party at a return on total costs of 1.61%, below the arm's length interquartile range of 4.20%–9.22% established by the tax authorities' benchmark study. The authorities adjusted profits to the median of 5.23%. In November 2024, the Polish Administrative Court upheld the transfer pricing adjustment, confirming the TNMM as the most appropriate method and the validity of the benchmark analysis ... Read more

Sabic India, an intra-group marketing services provider, used TNMM with a Berry ratio and cost-based profit level indicators to price controlled transactions. The tax authority rejected the method without reasons and applied an alternative other method. The Income Tax Appellate Tribunal overturned the assessment, and the Delhi High Court upheld that decision in 2024, finding the TPO had failed to justify rejecting TNMM used in prior years ... Read more

Toyota del Perú applied TNMM with multi-year benchmarking data and comparability adjustments for controlled vehicle import transactions. Peru's tax authority rejected both, relying solely on 2009 single-year data and assessing at the median. The Tax Court ordered a fresh comparability analysis, but Peru's Supreme Court overturned that ruling in 2024 and remanded the case, directing the Tax Court to determine whether Toyota's adjustments and multi-year data were justified ... Read more

Colombia's Supreme Administrative Court ruled in favour of the tax authority in a 2024 dispute over C.I. Banacol's FY2013 transfer pricing for related-party transactions. DIAN rejected the taxpayer's segmented approach and applied TNMM on an aggregated basis, arguing the transactions served a single commercial purpose. The court agreed, confirming that the interrelated fruit marketing transactions should be analysed collectively and that the selected comparables and interquartile range were appropriate ... Read more

Sony India Private Limited, a wholly owned subsidiary of Sony Corporation Japan, faced transfer pricing adjustments by Indian tax authorities who applied TNMM to benchmark distribution activities and used the bright-line test to separately benchmark advertising, marketing and promotion expenses. The Income Tax Appellate Tribunal Delhi Bench ruled mostly in favour of Sony India in 2024, remanding key comparability issues for re-examination ... Read more

A Korean subsidiary importing medical equipment, appliances and lighting products from related parties was audited after tax authorities rejected its business-line segmentation and functional analysis. Authorities reclassified activities and selected new comparables, issuing additional assessments. The Korean High Court ruled in favour of the taxpayer in August 2024, finding the authority's segmentation and comparable selection flawed ... Read more

Scania Argentina applied the Transactional Net Margin Method using Return on Total Costs as its profit-level indicator for intercompany sales, with a comparability adjustment for extraordinary idle capacity. The Argentine tax authority rejected the methodology and substituted ROCE, issuing an additional assessment for FY 2003. The Tax Court and, on further appeal in 2024, the Administrative Court of Appeal both upheld Scania's transfer pricing analysis, finding the tax authority failed to substantiate its objections ... Read more

Yazaki Bulgaria's actual net cost plus margins fell outside the arm's length interquartile range for 2014–2016, but the company applied cost basis adjustments to bring them within range. The tax authorities rejected those adjustments and issued an income assessment. Bulgaria's Supreme Administrative Court overturned the lower court's annulment of the assessment in July 2024, ruling in favour of the tax authorities and upholding the original transfer pricing correction ... Read more

Siemens Aktiengesellschaft's Kenyan permanent establishment applied a 3% net cost plus margin based on its limited-risk profile, but Kenya's Tax Appeal Tribunal upheld the tax authority's assessments in 2024, applying a benchmark median of 6.94%. The Tribunal found Siemens failed to discharge its burden of proof and ruled that allocated head office costs constituted management fees subject to withholding tax under Kenyan law ... Read more

A Kenyan subsidiary of a UK tea trading group faced a Kshs 1.4 billion transfer pricing assessment covering 2015–2018, arising from undocumented transactions with a Pakistani related party, Tapal Tea PVT Ltd. The tax authority applied TNMM after identifying common directorship as evidence of control and classified the company's auction licence as a valuable intangible. The Kenya Tax Appeals Tribunal dismissed the appeal in 2024, upholding the assessment in full ... Read more

Danish tax authorities raised EET Group A/S's taxable income by DKK 128 million for 2010–2012, alleging foreign sales companies were overcompensated as limited risk distributors. The National Tax Tribunal reduced the adjustment significantly. The Court of Appeal upheld the gross profit benchmarking approach, found the transfer pricing documentation adequate, and confirmed interquartile range narrowing, largely ruling in the taxpayer's favour ... Read more

Puma Energy Bahamas SA, a petroleum products wholesaler in Panama, faced a $39 million taxable income adjustment for FY 2013–2014 after the Tax Administration identified inconsistencies in its transfer pricing documentation. The Administrative Tax Tribunal ruled in favour of the tax authority in 2020, and Panama's Supreme Court upheld that decision in 2024, confirming the gross margin benchmark analysis and comparability adjustments applied by the administration ... Read more

A Greek subsidiary of a global electronics group applied the TNMM method using ROS as its profit level indicator to document intra-group goods transactions for 2018. The tax authority rejected six of ten comparables as insufficiently comparable, conducted its own benchmark, and adjusted the taxpayer's income to the median of the interquartile range. The Administrative Tribunal upheld the assessment in May 2024, rejecting the taxpayer's claim of misapplication of the transfer pricing method ... Read more

A Colombian auto manufacturer was assessed additional taxable income for FY2011 after the tax authority challenged its use of prior-year comparables and comparability adjustments for intra-group inventory purchases. The Administrative Court ruled for the taxpayer, and the Supreme Administrative Court upheld that decision in 2024, confirming that the benchmark study, transfer pricing method, and comparability adjustments applied were reasonable and acceptable ... Read more

Israel's tax authority assessed eBay Marketplace Israel Ltd. as a limited risk distributor using TNMM with operating margin as the profit level indicator. The company appealed, challenging the comparability analysis. The District Court remanded the case in April 2024, directing the tax authority to reissue assessments with adjustments for profitability cycles, double-counted transactions, double taxation risks, platform value contributions, and revised comparable company selection ... Read more

Ukraine's tax authority added geographic and company size criteria to Olympex's TNMM benchmark, producing higher comparable margins and an additional taxable income assessment. Olympex challenged the assessment through multiple court levels. The Supreme Administrative Court upheld the Court of Appeal's 2024 ruling largely in favour of Olympex, dismissing the tax authority's appeal and confirming that the additional comparability criteria were not justified ... Read more

PT VVF Indonesia, an oleochemical manufacturer, disputed the tax authority's rejection of its net cost plus benchmark and replacement comparables for related-party sales to VVF India in 2016. The authority tested profitability at company level and substituted seven new comparables, arguing comparability defects were adequately addressed. Indonesia's Tax Court partly granted the taxpayer's appeal in February 2024 ... Read more

Colombia's Supreme Administrative Court upheld the annulment of a transfer pricing assessment against Masterfoods Colombia for FY2008. The tax authority had replaced the taxpayer's transactional net margin method with the cost-plus method and adjusted results to the median of the interquartile range. The court found the authority's method and comparables inadequate, ruling the TNMM was more appropriate and deciding in favour of the taxpayer ... Read more

PT Acer Indonesia, a distributor of computer and electronics products, was challenged by the Indonesian tax authority over its TNMM comparable companies and the treatment of settlement discounts and channel rebates as income. The Tax Court ruled entirely in the taxpayer's favour in January 2024, finding the taxpayer's comparables appropriate, the authority's replacement set unsupported, and the discounts and rebates genuine price reductions backed by documentation ... Read more

SAS CFEB Sisley, head of the Sisley cosmetics group, was assessed by French tax authorities who alleged that pricing to its Hong Kong subsidiary constituted an indirect profit transfer under Article 57. The Montreuil Administrative Court discharged the assessment, finding internal comparables showed equivalent gross margins. The Paris Court of Appeal dismissed the authorities' appeal in December 2023, confirming the tax authorities had not met their burden of proof ... Read more

Ukraine's tax authorities challenged Olympex Coupe International's transfer pricing by adding geographic and company size criteria to its TNMM benchmark study, producing higher comparable margins and an additional taxable income assessment. After proceedings before the District Court and Supreme Court remittal, the Administrative Court of Appeal reconsidered the case in December 2023 and ruled largely in favour of the taxpayer, rejecting the additional comparability criteria applied by the tax authorities ... Read more

RKS, a French manufacturer of large custom bearings controlled by Sweden's SKF group, reported losses from 2005 onward. French tax authorities adjusted results to a 4.17–4.32% median net margin derived from a benchmark study. After earlier appellate rulings and a Conseil d'État referral, the Versailles Administrative Court of Appeal in 2023 ruled in favour of the taxpayer, annulling the additional taxable income assessment following a full FAR and risk-control analysis ... Read more

A French subsidiary of the Italian Menarini Group repeatedly reported operating losses due to overpriced purchases from related Italian entities. The French tax authorities applied the CUP and TNMM methods and adjusted prices to the median, finding an indirect profit transfer under Article 57. The Administrative Court of Appeal in Paris dismissed the taxpayer's appeal in November 2023, upholding the assessment in favour of the tax authority ... Read more

A South African chemical manufacturer purchased precious group metals from a connected Swiss entity to produce catalytic converters. The revenue authority challenged the pricing, rejected the CUP method, and applied TNMM using return on total cost as the profit level indicator, issuing an assessment of over R114 million. The Tax Court ruled in 2023 on the interpretation of the most appropriate transfer pricing method for the transactions ... Read more

A Danish company's transfer pricing documentation was found materially deficient by the Court of Appeal in 2023, as it failed to describe how prices were determined or provide adequate information about the related flow-through entity's business activities. SKAT was entitled to issue a discretionary assessment. The court also upheld withholding tax liability on transfers treated as taxable dividends under Danish corporation tax rules ... Read more

A Colombian coal company made comparability adjustments to account for exchange rate risk assumed by the tested party. The tax authority challenged the reliability of these adjustments. Colombia's Council of State upheld the adjustments in 2023, finding that exchange rate variations are a valid comparability factor affecting price or profit margin, and ruled in favour of Drummond LTDA ... Read more

A Spanish manufacturer of cookers and heaters reported negative profit margins on intra-group transactions in 2010 and 2011, attributing losses to the financial crisis. The tax authority adjusted profits to the median using the TNMM. The Audiencia Nacional largely upheld the assessment in 2023 but reduced the adjustment to the lower quartile, finding that a median adjustment required proven comparability defects that the authorities had not sufficiently established ... Read more

SAS Weg France, a subsidiary of a Brazilian-led group, was audited by French tax authorities who argued it performed a gratuitous financial function by paying group suppliers within 30 days while awaiting goods for up to three months. Authorities adjusted profits to the median of a benchmark study and imposed withholding tax. The French Court of Appeal ruled in favour of the taxpayer in May 2023 ... Read more

A Malaysian edible oils refiner applied the CUP method for its controlled transactions, which tax authorities rejected in favour of TNMM, then adjusted the taxpayer's 2010 results up to the median despite falling within the interquartile range. The Special Commissioners of Income Tax set aside the assessment, and the Malaysia High Court in 2023 dismissed the tax authority's appeal, confirming that an adjustment to the median was not warranted when results already fell within the arm's length range ... Read more

A Ukrainian agribusiness disputed the tax authority's finding that its controlled export transactions with related parties in Cyprus and the British Virgin Islands fell below the arm's length range. The company argued the CUP method was improperly applied due to incomplete cost data, citing Euronext exchange prices. The Supreme Administrative Court upheld the tax authority's position in 2023, confirming the use of the interquartile range median was lawful ... Read more

A Panamanian distributor used the Transaction Net Margin Method to price related-party transactions but excluded USD 6.9 million in ordinary general and administrative costs by classifying them as extraordinary expenses. The tax authority found this understated the operating margin, pushing results outside the arm's length range, and adjusted profits to the median of 4.39%. Panama's Administrative Tax Tribunal upheld the adjustment in March 2023 ... Read more

A Spanish branch performing IT distribution and marketing activities was assessed by tax authorities who adjusted its income to the median of a TNMM benchmark range and disallowed intra-group service fee deductions. The branch appealed, and Spain's TEAC partially upheld the appeal in January 2023, finding deficiencies in the tax authority's comparability analysis and burden of proof regarding the interquartile range adjustment ... Read more

A Panamanian tech distributor received a USD 1.4 million transfer pricing adjustment for FY2013 after tax authorities found inconsistencies in reported transactions, improper inclusion of other income in the TNMM operating margin, and flawed comparability adjustments. The Panama Tax Tribunal upheld the assessment in January 2023, confirming that the rejected comparables and disallowed adjustments placed the company's profit margin outside the interquartile range, warranting adjustment to the median ... Read more