Tag: Routine distributor

Italy vs BI S.r.l, November 2018, Tax Tribunal of Milano, Case no. 5445/3/2018

Italy vs BI S.r.l, November 2018, Tax Tribunal of Milano, Case no. 5445/3/2018

The Italian tax authorities had issued an assessment against a local distribution company of a multinational group, where the transfer pricing analysis conducted by the taxpayer had been disregarded. The tax authorities, carried out a new benchmark analysis based on the transactional net margin method (“TNMM”) and adjusted the company’s profitability to the median. The Tax Court cancelled the assessment, noting that the profitability range calculated by the tax authorities “goes, for the year 2013, from a minimum value of 1.40% to a maximum of 18.28%. The local distribution company obtained a 8.38%. Since the last percentage falls between the minimum and the maximum, for this judge the provisions of the aforementioned ministerial decree have to be applied (i.e. Ministerial Decree 14 May 2018)“. Click here for translation Commissione Tributaria Provinciale Lombardia Milano ... Continue to full case
France vs. SA Rocadis, September 2001, CE

France vs. SA Rocadis, September 2001, CE

In the Rocadis case the French taxpayer argued that a related Japanese company was not a routine distributor, but a co-entrepreneur. The court however considered that evidence for such as statement was not provided, and the transfer pricing adjustment was upheld by the court. Click here for translation France vs Rocadis sep 2001 ... Continue to full case