South America Archives - Academy of Tax Law

Understanding Intra-Group Losses in Transfer Pricing: Key Insights from Recent Cases

Argentina, Czech Republic, France, International, International Tax, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

Intra-group losses in transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More have become a focal point of legal scrutiny and regulatory enforcement. The recent cases of Dart Sudamericana, ST Dupont, and Stora Enso highlight the complexities and challenges multinational enterprisesWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... More (MNEsWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... More) face in justifying and managing these losses.

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Transfer Pricing Case: Colombia vs. Industria Nacional de Gaseosas S.A. (INDEGA)

Columbia, Dispute Resolution, International Tax, South America, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

In-depth analysis of the landmark transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More case between Colombia and INDEGA, its implications for multinationals, and how preventative measures like tax steering committees can help avoid such disputes.

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Dart Sudamericana Transfer Pricing Case

Argentina, Dispute Resolution, International, International Tax, Tax Dispute Resolution, TP Case Summaries / Dr Daniel N Erasmus

The case revolves around the transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More methods used by Dart Sudamericana S.A. for the importation of EPS pellets from related companies. The primary contention was whether the Comparable Uncontrolled Price (CUP) methodThe Comparable Uncontrolled Price (CUP) Method is a transfer pricing approach that assesses whether the price charged in an intercompany transaction between related entities is consistent with the arm’s length principle. The arm’s length principle, a fundamental concept in transfer pricing, requires that the conditions of a transaction between associated enterprises be equivalent to those which would have been agreed... More or the Net Transaction Margin Method (NTMM) was appropriate for determining the arm’s length price of these transactions.

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International Taxation of E-commerce Business Income

Africa, Asia, Europe, International, North America, Oceania, OECD, South America / ATL-Editor

Article by: Dr. Dennis Ndonga (Lecturer, Murdoch University Australia) The rapid growth of cross-border e-commerce has challenged the existing international tax principles that are structured around national boundaries and State sovereignty. Most tax regimes generally assert jurisdiction to tax business income based on the principles of residence-based and source-based taxation. The residence-based system imposes taxes

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Double Tax Treaties: An Introduction

Africa, Asia, Europe, North America, Oceania, OECD, South America / ATL-Editor

Paper by: Reuven S. Avi-Yonah The existing network of over 2,500 bilateral double tax treaties (DTTs) represents an important part of international law. The current DTTs are all based on two models, the OECD and UN model DTTs, which in turn are based on models developed by the League of Nations between 1927 and 1946.

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ANTI-AVOIDANCE MEASURES OF GENERAL NATURE AND SCOPE-GAAR AND OTHER RULES

Argentina, South America / ATL-Editor

Paper by: Guillermo O. Teijeiro Most countries have either judicial or statutory general anti-avoidance rules (GAAR); Argentina enrols in the second group as GAAR are of statutory nature. Countries in both groups frequently combine GAAR with special anti-avoidance rules (SAAR). GAAR are generally applied to interpret tax rules, to characterize taxpayers acts and transactions (i.e.,

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PARAGUAY – “Tax treaty overrides: tension between Paraguayan Constitutional Law and the Vienna Convention on the Law of Treaties. An economic and legal analysis of the feasibility of implementing Double Taxation Treaties with uncertain reciprocity” – Lui Carísimo

FP News, South America / ATL-Editor

DTC are binding agreements between usually two States and thus are governed by Public International Law. In the majority of jurisdictions, the introduction of DTC into domestic legislation is required for having binding effects. Paraguay follows this legal principle, where ratified treaties are above national law – but below the Constitution – upon exchange of

PARAGUAY – “Tax treaty overrides: tension between Paraguayan Constitutional Law and the Vienna Convention on the Law of Treaties. An economic and legal analysis of the feasibility of implementing Double Taxation Treaties with uncertain reciprocity” – Lui Carísimo Read More »