Tag: Imabari Shipbuilding

Japan vs Imabari Shipbuilding Co. Ltd., October 2006, Takamatsu High Court, Case No. 17

Japan vs Imabari Shipbuilding Co. Ltd., October 2006, Takamatsu High Court, Case No. 17

Imabari Shipbuilding Co.Ltd., was a Japanese shipbuilding company constructing ships for an affiliate company located in Panama, Panama S.A. The Japanese tax authorities found that prices used in transactions between Imabari Co. and Panama S.A. had not been at arm’s length. A tax assessment was therefore issued where the pricing was based on the comparable uncontrolled pricing method (CUP). Imabari disagreed with the assessement and filed an appeal. At trial, the Takamatsu High Court rejected Imabari’s claim and held that the tax authority’s analysis could be limited to the factors that significantly affected the price, and that not all differences were required to be considered in the calculation of the arm’s length price. A final appeal to the Supreme Court was dismissed 14 April 2007. Click here for translation Shipbuilding-Oct-2006-034729_hanrei ... Continue to full case