Tag: Carlos Maximiliano

Quote on interpretation of law:

‘The word is a bad vehicle of thought; therefore, although the form is translucent in appearance, it does not reveal the entire content of the law, there is always room for a concept of doubts; the letter itself does not always indicate whether it must be understood to the letter, or applied extensively; finally, even the external clarity is illusory; under a single verbal wrapper several ideas are gathered and hidden, values broader and deeper than those resulting from the simple literal appreciation of the text'(Hermeneutics and Application of Law, ed.Forense, 17th ed,p.36).

Brazil vs LG Electronics Do Brasil LTDA., May 2016, Administrative Court of Appeals, Case No 1302-001,162

Brazil vs LG Electronics Do Brasil LTDA., May 2016, Administrative Court of Appeals, Case No 1302-001,162

/ Administrative Court of Appeal, Arm's Length Principle, Arm's length principle, Arm's Length Principle, Brazil, Carlos Maximiliano, Decision predominantly in favor of taxpayer, Interpretation, Interpretation of law, LG, Local tax regulations, Most appropriate method (MAM), Resale price method (RPM), RPL 60 / PRL 60, Transfer Pricing Methods, Transfer Pricing Methods
LG Electronics Do Brasil LTDA imported goods from a related company and used the “resale price minus” method to determine the arm’s length price. Following an audit, an assessment was issued for FY 2006 and 2007 where the tax authorities rejected the pricing method chosen by LG Electronics. An appeal was filed by LG Electronics with the Administrative Court of Appeal. Judgement of the Court The Court set aside the assessment of the tax authorities and ruled mostly in favor of LG Electronics. “It is also important to remember that the transfer pricing rule is not intended to grant tax benefits or stimulate domestic production, because its purpose is only to prevent the transfer of tax bases to other jurisdictions, for the various reasons that lead taxpayers to do so, including to reduce tax burden. The age-old, but never forgotten, teaching of Carlos Maximiliano professed that: ‘The word is a bad vehicle of thought; therefore, although the form is translucent ... Read more