Times Infotainment Media Ltd (TIML India), is in the entertainment business, including running an FM Broadcasting channel in India. It successfully participated in the auction of the radio business of Virgin radio in March 2008 in the United Kingdom. To complete the acquisition, it acquired two SPV companies, namely TML Golden Square Limited and TIML Global Limited. TIML India wholly held TIML Global which in turn wholly held TIML Golden. TIML India received funding from its parent Bennet Coleman & Co. Limited and remitted money primarily as an interest-free loan to TIML Global on 27 June 2008. TIML Global, on behalf of TIL Golden, paid UKP 53.51 million for the acquisition of Virgin Radio Shares. The acquisition of shares in Virgin Radios by TIML Golden was completed on 30 June 2008. TIML India booked the transaction in its accounts as a loan to TIML Global Limited, but the arm’s length interest rate on the loan was claimed at zero percent ... Read more

“F-inance. Sp. z o.o.” provided loans in 2004 – 2006 to a special-purpose vehicle (SPV) which had established to finance an investment. According to the loan agreements repayment of the principal amount and incurred interest for each loan was 31 December 2007. In 2008, these deadlines were extended to 31 December 2008. The tax authorities found that the controlled arrangement deviated from the arm’s length principle, since neither the loans nor the interest had been paid in accordance with the agreement and issued an assessment of additional income. A complaint was filed by “F-inance. Sp. z o.o.” with the Administrative Court. Judgement of the Court The Administrative Court found the complaint to merited consideration. According to the Court the tax authorities had not specified the way in which the agreements was considered to differ from the arm’s length principle. Furthermore, comparable transactions had not been identified by the tax authorities. Excerpts “The applicant is right in asserting that the non-market ... Read more