Cargill Bulgaria sold wheat, corn, and other agricultural goods to related Cargill entities in Switzerland and the Netherlands. The Bulgarian tax authority applied TNMM using a return-on-sales profit level indicator, benchmarking against five comparables with an interquartile range of 1.21–1.79%, and assessed additional corporate tax exceeding one million leva. Bulgaria's Supreme Administrative Court ruled in favour of the tax authority and remanded the case for re-examination ... Read more

A Colombian manufacturer within the GKN group made a comparability adjustment in its transfer pricing study to account for the first year of IFRS implementation in 2015. The tax authority rejected the adjustment, determined profitability fell outside the interquartile range, and adjusted results to the median, disallowing deductions. The Supreme Administrative Court ruled in favour of the taxpayer in 2025, accepting the IFRS transition adjustment as valid ... Read more

On 24 November 2025, HMRC released new operational guidance on the use of benchmarks, the narrowing of the arm’s-length range, and adjustments to the median. If the HMRC determines that a taxpayer’s transfer pricing results in outcomes that fall outside the arm’s-length range, it will adjust the pricing, and according to the new guidance, the median is likely to be the most appropriate basis for making these adjustments ... Read more

A Greek motor vehicle wholesale company was assessed additional income tax after authorities excluded comparable companies and adjusted results to the arm's length median, converting declared losses into taxable profits. The Administrative Court of Appeal upheld the adjustments, but Greece's Supreme Administrative Court reversed the decision in 2025, finding the lower court had incorrectly relied on a ministerial decision not applicable to the years under review ... Read more

A Spanish subsidiary of a multinational consumer goods group was audited for 2015–17 over contract manufacturing services, intra-group loans, and cash pooling arrangements. The tax authority rejected part of the taxpayer's comparable set and adjusted margins to the median, also applying group credit ratings and substituting Euribor with Eonia. Spain's TEAC largely upheld the authority's position in its October 2025 ruling ... Read more

FCA Greece S.A., a car importer, reported a tax loss for 2011 using TNMM-based transfer pricing documentation. Greek tax authorities rejected comparables and adjusted results to the interquartile range median, issuing a €6.5 million correction. The Supreme Administrative Court upheld the lower court's annulment, confirming that adjustment to the median without specific justification is unlawful where results already fall within the arm's length range ... Read more

A Greek motorcycle wholesaler challenged a tax authority adjustment that moved its tested operating margin to the median of a recalculated interquartile range for 2008. The Supreme Administrative Court ruled in favour of the taxpayer, finding that the 2008 legal framework created only a rebuttable presumption and that newly enacted transfer pricing rules could not be applied retroactively as a binding methodology for that year ... Read more

A Hungarian automotive electronics contract manufacturer reported a loss of minus 14.7% for FY 2018. The tax authority rejected the company's benchmark study, conducted its own comparable screening, and set a minimum arm's length return of 4.79%, increasing the corporate tax base by HUF 49.8 billion. The Regional Court remanded the case for re-examination in May 2025 ... Read more

EET Group A/S, a Danish IT components reseller, faced transfer pricing adjustments for 2010–2012 after tax authorities claimed its distribution companies earned more than comparable low-risk distributors. The Danish Supreme Court upheld the Court of Appeal's ruling in favour of the taxpayer, finding the transfer pricing documentation was not significantly deficient and that margins falling outside the interquartile range alone did not prove non-arm's length pricing ... Read more

Cipla Kenya Limited, a pharmaceutical distributor, reported an operating margin within the interquartile range under TNMM. The Kenya Revenue Authority adjusted the result to the median, citing comparability defects in the benchmarking study. The Tax Appeal Tribunal sided with the taxpayer in 2025, finding that where defects are explicitly identified, the authority must quantify adjustments rather than default to the median ... Read more

A Colombian emerald producer used the CUP method to justify related-party sales prices, relying on independent appraiser valuations as comparables. The tax authority rejected this approach and applied TNMM using a cost-based profit level indicator, adjusting income to the benchmarking median. The Council of State upheld the assessment in April 2025, confirming that appraiser valuations do not constitute comparable uncontrolled prices under the CUP method ... Read more

A Slovak company submitted transfer pricing documentation relying on a full-range benchmark, but tax authorities found 9 of 10 comparables lacked independence. The authorities conducted their own TNMM benchmark, concluded the controlled transactions fell outside the interquartile range, and adjusted pricing to the median. The Administrative Court dismissed the taxpayer's appeal in March 2025, upholding the assessment in full ... Read more

A Romanian company challenged additional corporate income tax following transfer pricing adjustments for FY 2012–2017. The Bucharest Court of Appeal had largely upheld the tax authority's position for FY 2013–2017. Romania's Supreme Administrative Court quashed that decision in 2025, finding the lower court had reproduced the tax authority's reasoning without independent analysis and failed to justify its rejection of the court-appointed expert's findings, remanding the case for fresh review ... Read more

A Danish life-saving equipment manufacturer sold products to foreign subsidiaries at lower prices than to unrelated distributors. The tax authority challenged the pricing using TNMM and a benchmark study applying the interquartile range and median adjustment. The district court initially overturned the assessment, but Denmark's Court of Appeal reversed that decision in February 2025, upholding the tax authority's arm's length adjustment ... Read more

A Spanish tyre distributor claimed its intra-group purchases from its German parent used the CUP method, arguing prices matched third-party supplier rates. The tax authority rejected this, applying TNMM with EU car parts wholesaler comparables and adjusting profits to the median. The Audiencia Nacional in 2024 largely upheld the tax authority, finding the CUP application inconsistent and approving the TNMM benchmark, while partially allowing the taxpayer's appeal ... Read more

Argentina's tax authority AFIP excluded R&D, advertising, and commercial costs from comparable companies' financials in Nestlé's TNMM transfer pricing analysis for FY 2009, inflating their margins and increasing Nestlé's taxable income. The Supreme Court found the appellate court had arbitrarily failed to engage with Nestlé's core arguments, violating its constitutional right to defence, and annulled the lower court decision, remanding the case for reconsideration ... Read more

Colombia's Supreme Administrative Court ruled mostly in favour of ABB Ltda in a dispute over the tax authority's rejection of five comparables from a TNMM benchmark study. The court reinstated four of the five excluded companies, finding insufficient grounds for their removal, and only upheld the exclusion of Dulhunty Power Ltd. due to significant intangibles. Recalculating the interquartile range, the court confirmed that the taxpayer's transactions fell within the arm's length range and restored the disallowed expenses ... Read more

A Swiss pharmaceutical company, restructured as a limited risk distributor following acquisition by a Canadian group, reported a -21.8% operating margin in 2018 while claiming a three-year average of 1.2% satisfied arm's length requirements. The tax authority adjusted the 2018 margin to 1.1%, adding CHF 8.9 million to taxable profit. Switzerland's Administrative Court upheld the adjustment in 2024, ruling that Swiss periodicity principles require annual profit assessment and rejecting retrospective multi-year margin smoothing ... Read more

Capitaria S.A. segmented its financial statements to isolate income from a joint venture with related BVI entity KT Financial Group, reporting a 69.24% operating margin. Chilean tax authorities challenged the segmentation methodology, alleging tax base erosion risks. The District Court and subsequently the Court of Appeal in 2024 both ruled in favour of the taxpayer, confirming that the segmented results adequately demonstrated the joint venture's profitability and were supported by sufficient documentary evidence ... Read more

A Hungarian metal parts manufacturer for the automotive industry had reported continuous losses since 2012 while its parent group remained profitable. The tax authority reclassified it as a low-risk contract manufacturer and issued an adjustment treating the losses as a hidden service to the parent. The Supreme Administrative Court ruled predominantly in favour of the taxpayer in October 2024 and remanded the case for reconsideration ... Read more

A Hungarian cosmetics group member paid royalties and service fees to related parties, including a Cyprus entity. Following an audit, tax authorities imposed penalties for fictitious invoices and disguised employment. Hungary's Supreme Administrative Court upheld the 200% wilful evasion penalty but annulled findings on the arm's length royalty rate, citing insufficient justification for the tax authority's use of an external expert and remanding that issue for re-examination ... Read more

A Czech subsidiary of the Japanese Futaba group, operating as an automotive components manufacturer, challenged a transfer pricing assessment covering loss-making years 2016–2017. The tax authority applied TNMM with net cost plus as the profit level indicator, reallocating the functional and risk profile through a value-chain analysis. The Czech Regional Court upheld the assessment in September 2024, confirming the method selection, comparables range, and risk allocation applied by the tax authority ... Read more

A Slovak contract manufacturer within the Valeo group was subject to a transfer pricing adjustment by the tax authorities, who applied TNMM with an interquartile range and median benchmark and disallowed deductions for intra-group management and technical service fees. The Administrative Court rejected the company's appeal, and the Supreme Administrative Court dismissed the further appeal in September 2024, fully upholding the tax authority's assessment ... Read more

A Portuguese software company applied the TNMM with a 4.1% return on total cost for intra-group services, within the benchmarked arm's length range of 3.4% to 13%. The tax authority added employee bonuses to the cost base, raising additional taxable profit. The CAAD arbitration tribunal ruled in favour of the taxpayer in 2024, finding the authority had not demonstrated a deviation from the arm's length principle and annulled the assessment ... Read more

A Slovak aluminium castings manufacturer within the Alicon Group used the profit-split method and reported a loss in 2012/2013. Tax authorities reclassified the company as a limited-risk manufacturer and applied TNMM, rejecting the reported loss. The Administrative Court ruled largely in the taxpayer's favour in 2024, finding authorities failed to prove limited-risk entities cannot incur losses and identified flaws in the benchmark study, including improper exclusion of loss-making comparables ... Read more

Yazaki Bulgaria's actual net cost plus margins fell outside the arm's length interquartile range for 2014–2016, but the company applied cost basis adjustments to bring them within range. The tax authorities rejected those adjustments and issued an income assessment. Bulgaria's Supreme Administrative Court overturned the lower court's annulment of the assessment in July 2024, ruling in favour of the tax authorities and upholding the original transfer pricing correction ... Read more

Siemens Aktiengesellschaft's Kenyan permanent establishment applied a 3% net cost plus margin based on its limited-risk profile, but Kenya's Tax Appeal Tribunal upheld the tax authority's assessments in 2024, applying a benchmark median of 6.94%. The Tribunal found Siemens failed to discharge its burden of proof and ruled that allocated head office costs constituted management fees subject to withholding tax under Kenyan law ... Read more

Danish tax authorities raised EET Group A/S's taxable income by DKK 128 million for 2010–2012, alleging foreign sales companies were overcompensated as limited risk distributors. The National Tax Tribunal reduced the adjustment significantly. The Court of Appeal upheld the gross profit benchmarking approach, found the transfer pricing documentation adequate, and confirmed interquartile range narrowing, largely ruling in the taxpayer's favour ... Read more

A Peruvian company provided USD 8.3 million to a Luxembourg group entity, characterising the transactions as deposits and applying interest rates of 2.3%–4.6%. The tax authorities recharacterised the arrangements as loans and assessed additional taxable income using higher Peruvian lending rates. Peru's Tax Court upheld the loan characterisation but revised the arm's length range to 5.14%–6.46%, resulting in a partially reduced assessment in 2024 ... Read more

Puma Energy Bahamas SA, a petroleum products wholesaler in Panama, faced a $39 million taxable income adjustment for FY 2013–2014 after the Tax Administration identified inconsistencies in its transfer pricing documentation. The Administrative Tax Tribunal ruled in favour of the tax authority in 2020, and Panama's Supreme Court upheld that decision in 2024, confirming the gross margin benchmark analysis and comparability adjustments applied by the administration ... Read more

A Greek subsidiary of a global electronics group applied the TNMM method using ROS as its profit level indicator to document intra-group goods transactions for 2018. The tax authority rejected six of ten comparables as insufficiently comparable, conducted its own benchmark, and adjusted the taxpayer's income to the median of the interquartile range. The Administrative Tribunal upheld the assessment in May 2024, rejecting the taxpayer's claim of misapplication of the transfer pricing method ... Read more

Bayer Argentina challenged a transfer pricing assessment for FY 1999 in which the tax authority applied the TNMM with an interquartile range and median to adjust taxable income upwards. The Tax Court and National Court both sided with the taxpayer. Argentina's Supreme Court upheld those decisions in March 2024, finding that applying the interquartile range to a period when it was not yet in force violated legal certainty and the constitutional principle of non-retroactivity of tax rules ... Read more

An Irish subsidiary providing services to its US parent challenged a Revenue assessment arguing that employee share option costs should be included in the TNMM cost base for FY2015–FY2018. The Tax Appeals Commission ruled in favour of the taxpayer in February 2024, overturning the assessment and finding that the comparability analysis did not require stock-based compensation to be included in the cost base ... Read more

Following an audit of Beta Healthcare International Limited, a Kenyan subsidiary of the Aspen Healthcare Group, the Kenya Revenue Authority applied the CUP method rather than the TNMM used by the company to determine arm's length prices. The Tax Appeals Tribunal dismissed the company's appeal in 2024, finding insufficient evidence to support its characterisation arguments and upholding the tax authority's transfer pricing methodology and additional income assessment ... Read more

Colombia's Supreme Administrative Court upheld the annulment of a transfer pricing assessment against Masterfoods Colombia for FY2008. The tax authority had replaced the taxpayer's transactional net margin method with the cost-plus method and adjusted results to the median of the interquartile range. The court found the authority's method and comparables inadequate, ruling the TNMM was more appropriate and deciding in favour of the taxpayer ... Read more

Checkpoint Technologies Kenya applied TNMM with a net cost plus margin of 5%, within its benchmarked interquartile range of 4.9% to 7.3%. The Kenya Revenue Authority assessed additional income, arguing the median of 5.5% should apply. The Tax Appeals Tribunal disagreed, ruling in favour of the taxpayer that any point within the arm's length range satisfies the arm's length principle under OECD Transfer Pricing Guidelines paragraph 3.63 ... Read more

PT Acer Indonesia, a distributor of computer and electronics products, was challenged by the Indonesian tax authority over its TNMM comparable companies and the treatment of settlement discounts and channel rebates as income. The Tax Court ruled entirely in the taxpayer's favour in January 2024, finding the taxpayer's comparables appropriate, the authority's replacement set unsupported, and the discounts and rebates genuine price reductions backed by documentation ... Read more

SAS CFEB Sisley, head of the Sisley cosmetics group, was assessed by French tax authorities who alleged that pricing to its Hong Kong subsidiary constituted an indirect profit transfer under Article 57. The Montreuil Administrative Court discharged the assessment, finding internal comparables showed equivalent gross margins. The Paris Court of Appeal dismissed the authorities' appeal in December 2023, confirming the tax authorities had not met their burden of proof ... Read more

A Malaysian edible oil producer challenged transfer pricing assessments issued by the tax authority for FY2011 and FY2014, which adjusted results to the median and interquartile range respectively. The Special Commissioner of Income Tax allowed the appeal in 2023, holding that no adjustment under Section 140A is permissible where the taxpayer's result falls within the arm's length range and no comparability defects justify narrowing the range ... Read more

A Greek company challenged a tax authority assessment covering intra-group sales and purchases in FY 2018 and 2019, arguing the transfer pricing method had been misapplied. The Dispute Resolution Board disagreed, upholding the assessment and confirming that internal comparables — transactions with independent third parties — were more reliable than external benchmarks under OECD Guidelines, given identical accounting practices and a closer relationship to the controlled transactions ... Read more

A Malaysian subsidiary of Thomson Reuters acted as a local distributor of information and dealing services, applying TNMM with a 2% target operating margin. The tax authority rejected five comparables, added three local ones, and included SG&A costs in the margin calculation. The Special Commissioner of Income Tax upheld the authority's assessment in 2023, dismissing the taxpayer's reliance on pan-Asian comparables and excluding extraordinary costs ... Read more

A French subsidiary of the Italian Menarini Group repeatedly reported operating losses due to overpriced purchases from related Italian entities. The French tax authorities applied the CUP and TNMM methods and adjusted prices to the median, finding an indirect profit transfer under Article 57. The Administrative Court of Appeal in Paris dismissed the taxpayer's appeal in November 2023, upholding the assessment in favour of the tax authority ... Read more

A South African chemical manufacturer purchased precious group metals from a connected Swiss entity to produce catalytic converters. The revenue authority challenged the pricing, rejected the CUP method, and applied TNMM using return on total cost as the profit level indicator, issuing an assessment of over R114 million. The Tax Court ruled in 2023 on the interpretation of the most appropriate transfer pricing method for the transactions ... Read more

Eli Lilly ČR distributed pharmaceuticals at a loss, offset by marketing service fees from its Swiss principal, Eli Lilly Export S.A. The Czech tax authority assessed additional VAT, arguing the marketing services were not exempt from Czech VAT. Both the Administrative Court and the Supreme Administrative Court dismissed Eli Lilly's appeals in 2023, upholding the VAT assessment on the intra-group service income ... Read more

A Danish company's transfer pricing documentation was found materially deficient by the Court of Appeal in 2023, as it failed to describe how prices were determined or provide adequate information about the related flow-through entity's business activities. SKAT was entitled to issue a discretionary assessment. The court also upheld withholding tax liability on transfers treated as taxable dividends under Danish corporation tax rules ... Read more

A Panamanian banana exporter priced related-party sales using TNMM and adjusted its negative ROTC of -1.83% upward by adding unearned insurance income from storm damage. The tax authority rejected both the method and the adjustment, applying the CUP method using quoted commodity prices and issuing an assessment of over B/. 20 million. Panama's Administrative Tribunal upheld the authority, ruling the unearned income adjustment was impermissible ... Read more

A Hungarian subsidiary of a global electronic components group faced tax authority challenges over its manufacturing remuneration and excessive interest payments to a Luxembourg group entity under a cash pool arrangement. The Court of Appeal relied on an expert opinion the Supreme Court found seriously questionable. In June 2023, Hungary's Supreme Court set aside the lower court's judgment and remanded the case for new proceedings with proper expert scrutiny ... Read more

A Spanish manufacturer of cookers and heaters reported negative profit margins on intra-group transactions in 2010 and 2011, attributing losses to the financial crisis. The tax authority adjusted profits to the median using the TNMM. The Audiencia Nacional largely upheld the assessment in 2023 but reduced the adjustment to the lower quartile, finding that a median adjustment required proven comparability defects that the authorities had not sufficiently established ... Read more

On 29 May 2002, Malaysia updated its existing TP rules. The new rules are largely in line with the OECD Transfer Pricing Guidelines, but there are minor differences. For example, the new rules state that the arm’s length range is defined as the range between the 37.5th and 62.5th percentiles of a data set. Furthermore, according to the new rules, the tax authorities may make adjustments to the median or any point above the median, even if a taxpayer’s price is already within the arm’s length range where there is a lower degree of comparability or comparability defects in the dataset. “13. Adjustment by Director General (1) Notwithstanding any other provision under these Rules, where the Director General has reason to believe that any price including the rate of interest imposed or would have been imposed in a controlled transaction is not at arm’s length, the Director General may make an adjustment to reflect the arm’s length price or arm’s ... Read more

ESAB CZ, a contract manufacturer for ESAB Europe, disputed a transfer pricing adjustment by Czech tax authorities requiring that depreciation and amortisation be included in the cost base used to calculate its target profit margin for 2014 and 2015. The Czech Regional Court ruled in favour of the tax authority in May 2023, finding that ESAB CZ failed to demonstrate the asset write-downs were unrelated to its contract manufacturing activities ... Read more