Tag: Services

Malaysia vs Shell Services Asia Sdn Bhd, November 2019, High Court, Case No BA 25-68-08/2019

Malaysia vs Shell Services Asia Sdn Bhd, November 2019, High Court, Case No BA 25-68-08/2019

The principal activities of Shell Services Asia Sdn Bhd in Malaysia is to provide services to related companies within the Shell Group. The company is part of a contractual arrangement for the sharing of services and resources within the Shell Group as provided in a Cost Contribution Arrangement. The tax authorities conducted a transfer pricing audit, and based on the findings, issued a tax assessment for fiscal years 2011 to 2016, where the Cost Contribution Arrangement had been recharacterised as an intra-group services arrangement. The taxable income was adjusted by imposing a markup on the total costs of the company for fiscal years 2012, 2014, 2015 and 2016. Consequently, the company had to pay the additional taxes in the amount of: RM 3,474,978.44; RM 2,559,754.38; RM 7,096,984.69; RM 2,537,458.50; RM 15,669,176.01. The company did not agree with the proposal. The judgement by the High Court only relates to proceedings and no views is expressed regarding the tax assessment. Malaysia vs Shell_High_Court BA-25-68--08-2019 ... Continue to full case
France vs. Sté Property Investment Holding, 9 December 2015, CE No 367897

France vs. Sté Property Investment Holding, 9 December 2015, CE No 367897

In the case of Sté Property Investment Holding a French company deducted fees paid for management services provided by a foreign related company. The court indicated that, even if the recharge concerned fees charged by subcontractors of the foreign company, the French company could only deduct the fees if it could prove that the services provided were real, the services were not duplicates, and the price of the services complied with the arm’s length principle. Click here for translation France vs Sté Property Investment Holding, 9 December 2015, CE No 367897 ... Continue to full case
France vs SA Borsumij Whery France, Feb 1997, Adm Court of appeal, No 94PA00511

France vs SA Borsumij Whery France, Feb 1997, Adm Court of appeal, No 94PA00511

The administration found that the reimbursement of a charge represented a transfer of profits abroad where the French company has not substantiated the benefit of the services which the French company could perform itself. The submission of incomplete documents was deemed to be insufficient. This analysis was confirmed by the French Supreme Tax Court. Click here for translation France vs SA Borsumij Whery France, Feb 1997, Adm Court of appeal, ... Continue to full case