Tag: Escalator

Mechanical conveyor used in commercial and public infrastructure to transport people between levels. In transfer pricing, escalator servicing and maintenance contracts raise questions about licence fees paid for branded equipment upkeep and whether royalty rates reflect arm’s length terms.

Russia vs LLC OTIS LIFT, December 2021, Arbitration Court of Moscow, Case № А40-180523/20-140-3915

Russia vs LLC OTIS LIFT, December 2021, Arbitration Court of Moscow, Case № А40-180523/20-140-3915

/ Royalty and License Payments, Basis for royalty calculation, Elevator, Escalator, Licence agreement, Lifts, Otis, Repair services, Royalty, Royalty and license payments, Service and maintenance, Technology and Trademarks
LLC Otis Lift, a Russian subsidiary of US parent Otis Elevator Company, paid royalties calculated on total maintenance revenue rather than only on Otis-branded goods and services as required by the licence agreement. The Russian tax authority issued an additional income assessment after finding the company had overstated deductible expenses. The Moscow Arbitration Court upheld the assessment in December 2021, ruling mostly in favour of the tax authority ... Read more