Tag: Futures contract

Financial derivative obligating parties to buy or sell an asset at a predetermined price on a future date. In transfer pricing, tax authorities challenge whether futures prices are valid comparables under CUP, and whether commodity hedging transactions between related parties reflect arm’s length commercial behaviour.

Ukrain vs "PJSC Vinnytsia Oil and Fat Plant", September 2025, Supreme Administrative Court, Case № К/990/22546/25

Ukrain vs “PJSC Vinnytsia Oil and Fat Plant”, September 2025, Supreme Administrative Court, Case № К/990/22546/25

/ Commodity Transactions, Comparability Analysis, Legality - Legitimacy - Constitutional, Marketing and Procurement Hubs, Transfer Pricing Methods, Agricultural products, British Virgin Islands, Commodities, Comparable Uncontrolled Price method (CUP), Deemed pricing date, Futures contract, Oilseeds, Precise timing of the transaction, Quoted commodity prices, Retroactive application of law, Secret comparables, Soybean oil, Timing issues, Timing of transaction
A Ukrainian oilseed producer sold sunflower, rapeseed, and soybean oil to a British Virgin Islands affiliate during 2015–2017. Tax authorities assessed additional corporate income tax using the CUP method, but Ukraine's Supreme Administrative Court dismissed the appeal, finding the comparable data were not publicly available in the audited years and that forward contract pricing must reference the contract date, not the delivery date, invalidating the authority's assessment ... Read more

Ukrain vs “PJSC Vinnytsia Oil and Fat Plant”, September 2025, Supreme Administrative Court, Case № К/990/22546/25

/ Commodity Transactions, Comparability Analysis, Legality - Legitimacy - Constitutional, Marketing and Procurement Hubs, Transfer Pricing Methods, Agricultural products, British Virgin Islands, Commodities, Comparable Uncontrolled Price method (CUP), Deemed pricing date, Futures contract, Oilseeds, Precise timing of the transaction, Quoted commodity prices, Retroactive application of law, Secret comparables, Soybean oil, Timing issues, Timing of transaction
A Ukrainian oilseed producer sold sunflower, rapeseed, and soybean oil to a British Virgin Islands affiliate during 2015–2017. Tax authorities assessed additional corporate income tax using the CUP method, but Ukraine's Supreme Administrative Court dismissed the appeal, finding the comparable data were not publicly available in the audited years and that forward contract pricing must reference the contract date, not the delivery date, invalidating the authority's assessment ... Read more
Ukrain vs "Novo-Sanzharsky Grain Storage LLC", September 2024, Administrative Court, Case № 440/3712/24

Ukrain vs “Novo-Sanzharsky Grain Storage LLC”, September 2024, Administrative Court, Case № 440/3712/24

/ Commodity Transactions, Comparability Analysis, Legality - Legitimacy - Constitutional, Transfer Pricing Methods, Agricultural products, Commodities, Comparable Uncontrolled Price method (CUP), Deemed pricing date, Futures contract, Precise timing of the transaction, Quoted commodity prices, Secret comparables, Terms of delivery, Timing issues, Timing of transaction
A Ukrainian grain storage company challenged a transfer pricing assessment in which the tax authority compared controlled grain transaction prices using non-public databases and a pricing date different from the contract conclusion date. The Administrative Court found in favour of the taxpayer in 2024, annulling the assessment on grounds that the authority's methodology failed to meet the legality criteria required under Ukrainian administrative law ... Read more
Hungary vs "Seeds Kft", September 2018, Supreme Court - Kúria, No. Kfv. VI. 35.585/2017

Hungary vs “Seeds Kft”, September 2018, Supreme Court – Kúria, No. Kfv. VI. 35.585/2017

/ Commodity Transactions, Delineation - Substance over Form, Commodities, Commodities futures, Contractual arrangement, Economic substance, Futures contract, Resale Price Method (RPM)
A Hungarian cereal and oilseed trading company faced a tax authority challenge over its accounting for commodity futures and the application of the resale price method in its transfer pricing documentation. The tax office found the pricing arbitrary, while the courts found neither party's method correct. The Supreme Court ultimately remanded the case for reexamination in 2018 ... Read more
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