Tag: Internal comparables

Portugal vs A S.A., October 2019, Tribunal Arbitral Coletivo, Case No 511/2018-T

Portugal vs A S.A., October 2019, Tribunal Arbitral Coletivo, Case No 511/2018-T

Company A is a Portuguese company in Group G (with an Indian parent) engaged in the production and sale of footwear and fashion accessories. Company C and Company D are also subsidiaries of the Group. Company A sold raw materials and goods to Company C and Company D, but also to unrelated parties. Company A had determined the pricing of the controlled transactions using the TNMM. External comparables were found using a commercial database. The Portuguese tax authority instead applied the TNMM using exclusively internal comparables, and on that basis it was concluded that the pricing of the controlled transactions had not been at arm’s length. The Tribunal found that the method applied by the tax authority was the most appropriate method for pricing the controlled transactions. Part 1 – Click here for translation Part 2 – Click here for translation P511_2018-T - 2019-10-10 - JURISPRUDENCIA ... Continue to full case
France vs. Sté Amycel France, 16 March 2016, CE, No 372372),

France vs. Sté Amycel France, 16 March 2016, CE, No 372372),

In Sté Amycel France the Court held that the Tax Administration must use an “appropriate” comparable when making transfer pricing adjustments. The French company was selling goods to both group companies and unrelated final customers. The tax administration had used a transaction with the third party customers as an internal comparable. However, as the related companies were acting as distributors, the comparison with the pricing applied to a third party customers was considered inappropriate for the purposes of assessing an arm’s length dealing. The court found that the pricing difference actually reflected the fact that the contractual relationship in the two situations was not comparable. Click here for translation France vs Amycel France _16_03_2016_CE no 372372 ... Continue to full case
Italy vs. Solvay s.a., October 2013, Supreme Court, 24005

Italy vs. Solvay s.a., October 2013, Supreme Court, 24005

This case is about transfer pricing methods and the use of the comparable uncontrolled price method. The Supreme Court affirmed that regarding the determination of the normal value of goods and services, the transfer pricing provisions refer to article 9 of the CTA, which recognizes, among the methods proposed by the OECD in the Guidelines, the traditional “comparable uncontrolled price method” Click here for translation Italy Supreme-Court-23-October-2013-No.-24005.pdf ... Continue to full case
Poland vs Lender S.A, October 2013, Supreme Administrative Court, Case No II FSK 2297/11 - Wyrok NSA

Poland vs Lender S.A, October 2013, Supreme Administrative Court, Case No II FSK 2297/11 – Wyrok NSA

At issue in this case is the choice of method for determening interest rates on an intra group loan – More precisely whether or not internal comparables existed that were in fact independent. It is also discussed whether a intra group loan is comparable to a bank loan or not. Click here for translation II FSK 2297-11 - Wyrok ... Continue to full case
Canada vs Alberta Printed Circuits Ltd., April 2011, Tax Court of Canada, Case No 2011 TCC 232

Canada vs Alberta Printed Circuits Ltd., April 2011, Tax Court of Canada, Case No 2011 TCC 232

Alberta Printed Circuits Ltd (APC, the taxpayer) was a Canadian manufacturer of custom prototype circuit boards. The manufacturing process was initially manual and later automated. In 1996, a Barbados company, APCI Inc.,  was formed via a complex ownership structure. The Barbados company provided services to Alberta Printed Circuits Ltd. by performing setup functions, software and website development, and maintenance services. APCI charged the appellant a fixed fee for the setup services and a square-inch fee for non-setup services. Alberta Printed Circuits Ltd charged the same fee for the same services to third-party customers. The tax authorities asserted that the Alberta Printed Circuits Ltd overpaid APCI $3.4 million because the terms and conditions of the agreements differed from those that would have been entered at arm’s length. Alberta Printed Circuits Ltd provided evidence of internal comparable transactions and transfer prices were determined by the comparable uncontrolled price (CUP) method. The court held that the price paid to APCI for the setup fees was arm’s length. It ... Continue to full case
Australia vs. Roche July 2008, Administrative Appeals Tribunal NT 2005/7 & 56-65

Australia vs. Roche July 2008, Administrative Appeals Tribunal NT 2005/7 & 56-65

The Applicant is an Australian subsidiary of the Roche Group, the parent company of which is a resident of Switzerland. Roche is a major pharmaceutical corporation with integrated operations in many countries. It carries on research and development, manufacturing, marketing, selling and distribution of pharmaceuticals, vitamins, chemicals, diagnostic and other products. During the 1993 to 2003 income years (the relevant income years) the Applicant carried on business in Australia marketing, selling and distributing Roche products through three divisions: the Prescription Division (dealing in prescribed drugs), the Consumer Health Division (dealing in over the counter pharmaceuticals) and Diagnostic Products (dealing in diagnostic equipment and supplies). Australia-vs-ROCHE-PRODUCTS-PTY-LTD-July-2008-Administrative-Appeals-Tribunal ... Continue to full case