Tag: Series of related-party transactions

Ideally, in order to arrive at the most precise approximation of arm’s length conditions, the arm’s length principle should be applied on a transaction-by-transaction basis. However, there are often situations where separate transactions are so closely linked or continuous that they cannot be evaluated adequately on a separate basis. TPG 3.9 – 3.12

Spain vs. Bicc Cables, July 2012, Supreme Court case nr. 3779/2009

Spain vs. Bicc Cables, July 2012, Supreme Court case nr. 3779/2009

In this case an adjustment was made by the tax authorities based on the non-recognition of the tax effects of a series of related-party transactions as part of a leverage acquisition of shares. The Court found that the transaction would not have been agreed by independent companies and accordingly the transaction in question was not performed in accordance with the arm’s length principle. Click here for translation Spain-vs-Bicc-Cables-July-2012-Supreme-Court ... Continue to full case