Cargill Argentina channelled commodity exports through a Uruguayan branch, with AFIP issuing transfer pricing assessments for FY 2000–2003 using the sixth method, pricing transactions at the shipment date rather than the contract date. Argentina's Court of Appeal confirmed the Tax Court's decision, ruling mostly in favour of the taxpayer and finding that AFIP's methodology was not valid under the transfer pricing rules applicable at the time ... Read more

An Argentine agricultural exporter was assessed by tax authorities who argued its commodity export prices fell below the official SAGPyA FOB index and should be adjusted under the sixth method. The National Tax Court and Chamber of Appeals both sided with the taxpayer, accepting internal comparables as valid. In May 2024, the Argentine Supreme Court confirmed those rulings, finding the taxpayer's export prices reflected arm's length market conditions ... Read more

Oleaginosa Oeste SA exported soybean and sunflower seed oil to a related party in Switzerland at prices the Argentine tax authority deemed not arm's length. The Tax Court and Court of Appeal partially annulled the assessment, but the Supreme Court overturned those decisions in 2024, finding that lower courts had failed to adequately examine the taxpayer's insufficient evidence regarding the date of sales, and remanded the case for reconsideration ... Read more

An Argentine cereals and oilseeds exporter conducted export transactions with related foreign companies, including Glencore International AG, applying selective use of the sixth method under Article 15 of the Income Tax Act. The tax authority AFIP challenged the arm's length pricing and issued an additional tax assessment. Argentina's Federal Tax Court ruled in favour of the tax authority in August 2023, upholding the assessment against the taxpayer ... Read more

An Argentine exporter sold products to a related Uruguayan intermediary at prices significantly below those charged on final shipment to Brazil. Argentina's Tax Court upheld the tax authority's 2023 assessment, which applied the sixth method and OECD arm's length principles to adjust the declared export price upward, resulting in additional income tax and VAT liabilities for the triangulated intercompany transaction ... Read more

Cargill Argentine SA routed 98% of its commodity exports through a Uruguayan branch, with the Argentine Revenue Service repricing transactions using the sixth method based on shipment dates. The Tax Court ruled mostly in favour of the taxpayer in 2022, finding the sixth method was not enacted until 2003 and could not apply retroactively to fiscal years 2000–2003, though a partial adjustment on soybean oil sales to Russia was referred back for reassessment ... Read more

A taxpayer challenged the constitutionality of Guatemala's sixth method valuation rules for commodity transactions between related parties, arguing they breached legality, certainty, and ability-to-pay principles. The tax authority defended the provisions as a lawful statutory complement to arm's length methods. In February 2022, Guatemala's Constitutional Court upheld the challenged articles, confirming the regime's validity and ruling in favour of the tax authority ... Read more

ADM Argentina exported agricultural commodities to a related party, and the Argentine tax authority adjusted prices using the sixth method, selecting external comparables the courts found materially flawed. The Federal Tax Court overturned the assessment, the Court of Appeal upheld that decision, and in October 2021 the Supreme Court dismissed the tax authority's final appeal, confirming the adjustments were arbitrary and the chosen comparables were invalid ... Read more

An Argentine malt producer exported goods through a related Uruguayan intermediary before onward sale to a Brazilian brewery at a higher price. The tax authority applied Argentina's Sixth Method, determining the arm's length export price by reference to the final sale price in Brazil. The Tax Court and, on appeal in 2021, the Federal Administrative Court both upheld the assessment and confirmed substantial penalties for under-invoicing ... Read more

An Argentine grain exporter routed commodity sales through British Virgin Islands group traders. Tax authorities applied the sixth method CUP, referencing shipment-date prices and adjusting only unfavourable transactions. The National Court of Appeals partly sided with the taxpayer on the asymmetric adjustment approach but upheld the assessment otherwise. Argentina's Supreme Court ultimately decided in favour of the tax authority in 2021 ... Read more

An Argentine malt producer exported to a related Uruguayan intermediary, which resold to a Brazilian brewery at a higher price. The tax authority applied the sixth method, benchmarking the export price against the Brazil transaction and issued a fine for under-invoicing. Argentina's Tax Court confirmed the assessment in 2019, finding the declared export prices were manifestly inaccurate and that customs transfer pricing rules had been correctly applied ... Read more

B.3. METHODS B .3 .1 .       Introduction to Transfer Pricing Methods B.3.1.1.                         This part of the chapter describes several transfer pricing methods that can be used to determine an arm’s length price and describes how to apply these methods in practice. Transfer pricing methods (or “methodologies”) are used to calculate or test the arm’s length nature of prices or profits. Transfer pricing methods are ways of establishing arm’s length prices or profits from transactions between associated enterprises. The transaction between related enterprises for which an arm’s length price is to be established is referred to as the “controlled transaction”. The application of transfer pricing methods helps assure that transactions conform to the arm’s length standard. It is important to note that although the term “profit margin” is used, companies may also have legitimate reasons to report losses at arm’s length. Furthermore, transfer pricing methods are not determinative in and of themselves. If an associated enterprise reports an arm’s length amount of ... Read more

An Argentine exporter sold cereals and oilseeds through group traders in the British Virgin Islands. The tax authority applied the sixth method using shipment-date prices but only adjusted transactions where quoted prices exceeded agreed prices. Argentina's National Court upheld most of the assessment in 2016 but found the asymmetric adjustment approach unlawful, referring that issue back to the lower court ... Read more

An Argentine tax authority applied the sixth method to intra-group commodity transfers involving Alfred C. Toepfer International S.A. The taxpayer challenged the retroactive application of the rule. The Argentine Supreme Court decided in favour of the taxpayer in March 2015, providing important guidance on the interpretation and retroactive effect of the sixth method in commodity transaction transfer pricing cases ... Read more