A Tanzanian coffee exporter received cash advances from a Swiss company to fund coffee procurement between 2009 and 2011. The Tanzania Revenue Authority treated the parties as associates and applied transfer pricing adjustments under the Income Tax Act. The Court of Appeal dismissed the exporter's appeal in 2025, confirming the associate relationship, upholding the assessments, and excluding foreign exchange loss challenges as questions of fact rather than law ... Read more

Umicore Argentina received intercompany loans from a related foreign entity to fund local operations. The Argentine tax authority recharacterised the loans as disguised capital contributions due to prolonged non-repayment, denying interest and foreign exchange loss deductions. The National Tax Court ruled in favour of the taxpayer in 2025, finding that non-repayment resulted from Argentina's exchange controls, not the parties' intent, and confirmed the deductions ... Read more

Tele2 successfully defended SEK 1.8 billion in tax deductions for foreign exchange losses on intra-group loans before the Swedish Court of Appeal in 2022. The Swedish tax authorities had disallowed the deductions, arguing the currency conversion would not have occurred at arm's length. The Court of Appeal disagreed, finding that Tele2 had provided a reasonable and probable commercial explanation for the losses, ruling in the taxpayer's favour ... Read more

Whether foreign exchange gains and losses should be included or excluded from the determination of the net profit indicator raises a number of difficult comparability issues. First, it needs to be considered whether the foreign exchange gains and losses are of a trading nature (e.g. exchange gain or loss on a trade receivable or payable) and whether or not the tested party is responsible for them. Second, any hedging of the foreign currency exposure on the underlying trade receivable or payable also needs to be considered and treated in the same way in determining the net profit. In effect, if a transactional net margin is applied to a transaction in which the foreign exchange risk is borne by the tested party, foreign exchange gains or losses should be consistently accounted for (either in the calculation of the net profit indicator or separately) ... Read more

A Ukrainian mineral fertilizer producer faced transfer pricing challenges on export sales to a related party in Switzerland and natural gas imports from a related party in Cyprus. The tax authority assessed additional corporate income tax of UAH 43 million and reduced loss carryforwards by UAH 195 million. Ukraine's Supreme Administrative Court upheld the assessment in 2019, confirming that delivery conditions and exchange rate differences must be considered in comparability analysis ... Read more

Whether foreign exchange gains and losses should be included or excluded from the determination of the net profit indicator raises a number of difficult comparability issues. First, it needs to be considered whether the foreign exchange gains and losses are of a trading nature (e.g. exchange gain or loss on a trade receivable or payable) and whether or not the tested party is responsible for them. Second, any hedging of the foreign currency exposure on the underlying trade receivable or payable also needs to be considered and treated in the same way in determining the net profit. In effect, if a transactional net margin is applied to a transaction in which the foreign exchange risk is borne by the tested party, foreign exchange gains or losses should be consistently accounted for (either in the calculation of the net profit indicator or separately) ... Read more