Tag: VW

Argentina vs Volkswagen Argentina S.A., August 2024, Supreme Court, Case No CSJN 13/08/2024  (TF 30954-I)

Argentina vs Volkswagen Argentina S.A., August 2024, Supreme Court, Case No CSJN 13/08/2024 (TF 30954-I)

The case of Volkswagen Argentina S.A. concerns whether the company’s income for FY 1999 – 2001 had been determined in accordance with the arm’s length principle. For the purposes of its transfer pricing analysis, Volkswagen Argentina (VWA) had included in its profits an extraordinary gain resulting from the waiver of a loan granted by Volkswagen Argentina Holding S.A., and on this basis had concluded that the results were at – or even above – arm’s length. The tax authorities disagreed with the adjustment made to VWA’s profits and found that the company had not been remunerated at arm’s length and an assessment of additional taxable income was issued. An complaint was made to the Tax Court, which ruled in VWA’s favour. The tax authorities then filed an appeal with the Court of Appeal, which was dismissed in December 2019. The case went on to the Supreme Court. Judgment The Supreme Court ruled in favour of the tax authorities. Click here ... Read more
Argentina vs Volkswagen Argentina S.A., December 2019, Court of Appeal, Case No CAF 057064/2013/CA001 - CA002

Argentina vs Volkswagen Argentina S.A., December 2019, Court of Appeal, Case No CAF 057064/2013/CA001 – CA002

The case of Volkswagen Argentina S.A. revolves around benchmarking and comparability adjustments. For purpose of its transfer pricing analysis Volkswagen Argentina had included an extraordinary result resulting from forgiveness of a loan granted by Volkswagen Argentina Holding S.A. in its profits and on that bases concluded that the results had been at arm’s length – or even above. The tax authorities disagreed with the adjustment made by VWA to its profits and found that it had not been remunerated at arm’s length. A complaint was filed with the tax court, which decided in favour of VWA. An appeal was then filed by the tax authorities with the Court of Appeal. Judgment The Federal Court of Appeals supported VWA making the adjustment to VWA’s profits and also the approach of averaging out the results over a period of three year. The appeal of the tax authorities was therefore dismissed. Click here for English Translation ... Read more