Honda Motor de Argentina S.A., an importer and distributor of vehicles and motorcycles, challenged an ARS 9.7 million transfer pricing adjustment for fiscal year 2009. Argentina's tax authority rejected a Canadian wholesale distributor as a TNMM comparable due to a negative operating margin, product differences, and a goodwill impairment. The National Tax Court sided with Honda, finding the comparable valid and the authority's grounds for exclusion unsupported ... Read more

A Korean subsidiary of a French luxury goods group imported products from a Hong Kong affiliate and applied the resale price method for transfer pricing purposes. The tax authority rejected the original application and issued a reassessment. Korea's Tax Tribunal upheld the RPM but ordered revised comparability adjustments. On re-investigation, the authority recalculated the arm's length range, issuing a partial refund, while the taxpayer's second appeal was dismissed in favour of the tax authority ... Read more

A Korean subsidiary of a French luxury goods group imported products from a Hong Kong affiliate and applied the resale price method for transfer pricing purposes. The tax authority rejected the original application and issued a reassessment. Korea's Tax Tribunal upheld the RPM but ordered revised comparability adjustments. On re-investigation, the authority recalculated the arm's length range, issuing a partial refund, while the taxpayer's second appeal was dismissed in favour of the tax authority ... Read more

A Korean company paid trademark royalties on its own consolidated sales but collected no royalties from its overseas sales subsidiaries for their use of the trademark. The tax authority added royalty income to the company's taxable income. The Seoul Appeals Commission upheld the assessment in 2022, rejecting arguments that the subsidiaries' limited-risk distributor status and capped profit margins meant the economic benefits of the trademark accrued solely to the parent ... Read more

A Polish wholesale distributor was assessed additional tax after the tax authority found its 2.84% profit margin fell below a range derived from three comparable wholesalers. The Administrative Court dismissed the company's complaint, but Poland's Supreme Administrative Court annulled the decision in 2021, ordering reexamination on issues including aggregation of marketing services, choice of transfer pricing method, benchmarking standards, and the use of the interquartile range with limited comparables ... Read more

A Bulgarian pharmaceutical wholesale distributor challenged a tax assessment covering FY2009 and FY2010, disputing transfer pricing adjustments on pharmaceutical products sold to a related party at prices more than half their acquisition cost, and a related-party loan bearing a below-market interest rate. The Supreme Administrative Court dismissed the appeal in January 2018, upholding the tax authority's findings and confirming the comparable uncontrolled price method was correctly applied ... Read more

Hallmark Marketing Corporation, the exclusive US wholesale distributor of Hallmark products operating under a royalty-free trademark licence, was characterised as a routine limited-risk distributor with income determined using the TNMM and Berry Ratio. The New York Division of Taxation challenged this approach, arguing the company performed manufacturing and brand protection functions and held non-routine intangibles. The New York Tax Appeals Commission ruled in favour of the taxpayer in 2006 ... Read more

Daihatsu Australia, an importer and wholesale distributor of vehicles manufactured by its Japanese parent, was issued amended assessments for FY 1992–1996 after the Australian tax authority determined import prices exceeded arm's length levels. The Federal Court upheld the assessments in 2001, rejecting the taxpayer's challenge and confirming that the Hickman principle offered no relief absent bad faith or improper purpose in issuing the assessments ... Read more