Tag: Eli Lilly

Czech Republic vs. Eli Lilly ČR, s.r.o., August 2023, Supreme Administrative Court, No. 6 Afs 125/2022 - 65

Czech Republic vs. Eli Lilly ČR, s.r.o., August 2023, Supreme Administrative Court, No. 6 Afs 125/2022 – 65

/ Advertising, Arm's length principle, Artificial arrangements, Benchmark Range and Median, Benchmark, Range and Median, Burden of proof (Onus), Czech Republic, Decision in favor of tax authority, Distribution, Distribution rights, District Court, Eli Lilly, Governmental regulation, Interquartile range (IQR), Limited Risk Distributors (LRD), Losses that continue indefinitely, Losses that continue indefinitely, Marketing services, Pharmaceutical, Price controls, Range and Median, Sales and Marketing Hubs, Sales and Marketing Hubs, Services and Fees, Services and Fees, Swiss, Tax treaty interpretation, Value Added Tax (VAT), VAT and Customs Valuation, VAT and Customs Valuation
Eli Lilly ČR imports pharmaceutical products purchased from Eli Lilly Export S.A. (Swiss sales and marketing hub) into the Czech Republic and Slovakia and distributes them to local distributors. The arrangement between the Czech company and the Swiss company is based on a Service Contract in which Eli Lilly ČR is named as the service provider to Eli Lilly Export S.A. (the principal). Eli Lilly ČR was selling the products at a lower price than the price it purchased them for from Eli Lilly Export S.A. According to the company this was due to local price controls of pharmaceuticals. However, Eli Lilly ČR was also paid for providing marketing services by the Swiss HQ, which ensured that Eli Lilly ČR was profitable, despite selling the products at a loss. Eli Lilly ČR reported the marketing services as a provision of services with the place of supply outside of the Czech Republic; therefore, the income from such supply was exempt from ... Read more
Czech Republic vs. Eli Lilly ČR, s.r.o., December 2022, Supreme Administrative Court, No. 7 Afs 279/2021 - 65

Czech Republic vs. Eli Lilly ČR, s.r.o., December 2022, Supreme Administrative Court, No. 7 Afs 279/2021 – 65

/ Advertising, Arm's length principle, Artificial arrangements, Burden of proof (Onus), Czech Republic, Decision in favor of taxpayer, Distribution, Distribution rights, Eli Lilly, Governmental regulation, Limited Risk Distributors (LRD), Losses that continue indefinitely, Losses that continue indefinitely, Marketing services, Pharmaceutical, Price controls, Sales and Marketing Hubs, Sales and Marketing Hubs, Services and Fees, Services and Fees, Supreme Administrative Court, Swiss, Tax treaty interpretation, Value Added Tax (VAT), VAT and Customs Valuation, VAT and Customs Valuation
Eli Lilly ČR imports pharmaceutical products purchased from Eli Lilly Export S.A. (Swiss sales and marketing hub) into the Czech Republic and Slovakia and distributes them to local distributors. The arrangement between the local company and Eli Lilly Export S.A. is based on a Service Contract in which Eli Lilly ČR is named as the service provider to Eli Lilly Export S.A. (the principal). Eli Lilly ČR was selling the products at a lower price than the price it purchased them for from Eli Lilly Export S.A. According to the company this was due to local price controls of pharmaceuticals. At the same time, Eli Lilly ČR was also paid for providing marketing services by the Swiss HQ, which ensured that Eli Lilly ČR was profitable, despite selling the products at a loss. Eli Lilly ČR reported the marketing services as a provision of services with the place of supply outside of the Czech Republic; therefore, the income from such ... Read more
Czech Republic vs. Eli Lilly ČR, s.r.o., December 2019, District Court of Praque, No. 6 Afs 90/2016 - 62

Czech Republic vs. Eli Lilly ČR, s.r.o., December 2019, District Court of Praque, No. 6 Afs 90/2016 – 62

/ Advertising, Arm's length principle, Artificial arrangements, Benchmark Range and Median, Benchmark, Range and Median, Burden of proof (Onus), Czech Republic, Decision in favor of tax authority, Distribution, Distribution rights, District Court, Eli Lilly, Governmental regulation, Interquartile range (IQR), Limited Risk Distributors (LRD), Losses that continue indefinitely, Losses that continue indefinitely, Marketing services, Pharmaceutical, Price controls, Range and Median, Sales and Marketing Hubs, Sales and Marketing Hubs, Services and Fees, Services and Fees, Swiss, Tax treaty interpretation, Value Added Tax (VAT), VAT and Customs Valuation, VAT and Customs Valuation
Eli Lilly ČR imports pharmaceutical products purchased from Eli Lilly Export S.A. (Swiss sales and marketing hub) into the Czech Republic and Slovakia and distributes them to local distributors. The arrangement between the local company and Eli Lilly Export S.A. is based on a Service Contract in which Eli Lilly ČR is named as the service provider to Eli Lilly Export S.A. (the principal). Eli Lilly ČR was selling the products at a lower price than the price it purchased them for from Eli Lilly Export S.A. According to the company this was due to local price controls of pharmaceuticals. Eli Lilly ČR was also paid for providing marketing services by the Swiss HQ, which ensured that Eli Lilly ČR was profitable, despite selling the products at a loss. Eli Lilly ČR reported the marketing services as a provision of services with the place of supply outside of the Czech Republic; therefore, the income from such supply was exempt from ... Read more
Brazil vs Eli Lilly, April 2018, CARF Case No 1302-002-725F

Brazil vs Eli Lilly, April 2018, CARF Case No 1302-002-725F

/ Arm's Length Principle, Arm's Length Principle, Brazil, Eli Lilly, Resale price method (RPM), Transfer Pricing Methods, Transfer Pricing Methods
This case concerns imports from related companies and use of the RPM method. Click here for translation Brazil vs Eli Lilly 11 april 2018 CARF Case No 1302-002-725F ... Read more