Tag: License of trademark

Germany vs License GmbH, February 2014, Local Tax Court, Case No 4 K 1053/11 E

Germany vs License GmbH, February 2014, Local Tax Court, Case No 4 K 1053/11 E

The Local Tax Court found that the arm’s-length principle requires a licence to be paid for the use of group name where the name/trademark has value in itself. The decision of the Local Court was later overturned by the Supreme Tax Court ruling in Case no. I R 22 14  Click here for translation FG Münster Urteil vom 14 02 2014 - 4 K 1053-11 E ... Continue to full case
Germany vs Trademark GmbH, November 2006, FG München, Case No 6 K 578/06

Germany vs Trademark GmbH, November 2006, FG München, Case No 6 K 578/06

A German company on behalf of its Austrian Parent X-GmbH distributed articles and products manufactured by the Austrian X-KG. By a contract of 28 May 1992, X-GmbH granted the German company the right to use the trade mark ‘X’ registered in Austria; According to the agreement the German company paid a license fee for the right. As early as 1991, X-GmbH had also granted X-KG a corresponding right; By a contract dated 1 July 1992, X-KG pledged to the applicant exclusive distribution rights for the Federal Republic of Germany. In the meantime, the mark ‘X’ had been registered as a Community trade mark in the Internal Market. The tax authorities dealt with the payment of royalties to X-GmbH for the years in question as vGA (hidden profit distribution). Click here for translation K 578-06 ... Continue to full case
France vs. SA Cap Gemini, Nov. 2005, CE, No 266436

France vs. SA Cap Gemini, Nov. 2005, CE, No 266436

In Cap Gemini, the Court concluded that the tax administration did not demonstrate the “indirect transfer of benefit” in the absence of a comparability study. The transaction in question consisted of a licence of the Cap Gemini trademark and logo. The French subsidiaries were charged with a 4% royalty, whereas European and American subsidiaries were charged no or lower royalty. The court found that the value of a trademark and logo may differ depending on each situation and market. In the ruling, the court reaffirmed that a transfer pricing assessment must be based on solid evidence. Click here for translation France vs SA Cap Gemini 7 Nov 2005 No 266436 ... Continue to full case