Tag: Soft drinks

France vs SA Tropicana Europe Hermes, August 2022, CAA of DOUAI, Case No. 20DA01106

France vs SA Tropicana Europe Hermes, August 2022, CAA of DOUAI, Case No. 20DA01106

SA Tropicana Europe Hermes is a French permanent establishment of SA Tropicana Europe, located in Belgium. The French PE carried out the business of bottling fruit juice-based drinks. In 2009, a new distribution contract was concluded with the Swiss company FLTCE, which was accompanied by a restructuring of its business. Before 1 July 2009, Tropicana was engaged in the manufacture of fresh fruit juices in cardboard packs and purchased fresh fruit juices which it pasteurised. As of 1 July 2009, its activity was reduced to that of a contract manufacturer on behalf of FLTCE, which became the owner of the technology and intellectual property rights as well as the stocks. The re-organisation led to a significant reduction in the company’s turnover and profits. Tropicana Europe was subject to two audits, at the end of which the tax authorities notified it of tax reassessments in respect of corporate income tax, withholding tax and business value added contribution (CVAE) for the years ... Read more
Spain vs. Refrescos Envasados S.A., November 2009, Supreme Court, Case nr. 3582/2003

Spain vs. Refrescos Envasados S.A., November 2009, Supreme Court, Case nr. 3582/2003

Refrescos Envasados, S.A. – a Coca-Cola subsidiary in Spain – bought soft drink concentrate manufactured by Coca-Cola companies in Ireland and France. According to the tax authorities the prices paid for the concentrate were above market prices. Hence, an assessment was issued where the prices for the concentrate had been lowered resulting in additional taxable profits. In regards to the tax assessment, the tax authorities argued that they were not bound by the valuation carried out for customs purposes. Judgement of the Supreme Court According to the Supreme Court the pricing applied for the purpose of calculating the customs, is linked to the pricing applied for transfer prices purposes. The tax authorities can choose a transfer pricing method, but the method chosen must be used for both CIT and customs purposes. Click here for english translation Click here for other translation Spain Supreme Court 3582-2003 ... Read more