Tag: Operating Lease  

Lease where the lessor is regarded as the owner of the leased asset for tax purposes. Cf. Finance Lease

Romania vs "Machinery rental" S.C. A. SRL, September 2020, Supreme Court, Case No 4453/2020

Romania vs “Machinery rental” S.C. A. SRL, September 2020, Supreme Court, Case No 4453/2020

An assessment had been issued where the pricing of intra group rental expenses for machinery had been set aside by the tax authorities for FY 2010-2013. By an application filed with the Court of Appeal S.C. A. S.R.L. requested the Court for annulment of the assessment issued by the tax authorities. The Court of Appeal by judgment no. 164 of 31 October 2017, partially partially annulled the assessment. Unsatisfied with this decision, both parties filed an appeal to the High Court. S.C. A. S.R.L. considers that the first court misapplied the substantive rules of law applicable to the case with regard to the additional determination of a corporation tax in the amount of RON 56,715 for 2010, with reference to the interpretation of the OECD Guidelines. “Although the expert appointed by the court of first instance correctly established the adjusted margins of trade mark-up for each of the years 2010 to 2013 and the adjusted margins of operating profit for ... Read more