Transfer Pricing Archives - Page 13 of 16

TPMinds Africa: 07 – 08 November 2023

Africa, Dispute Resolution, Transfer Pricing / Dr Daniel N Erasmus

I/I/T/F Head of Academic Development, Prof Dr Daniel N. Erasmus was in attendance at the event and delivered a key-note presentation on:

HOW TO PREPARE FOR A 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 TRIAL WITH YOUR EXPERTS.

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Stora Enso Wood Products vs Czechia

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

The Supreme Administrative Court (SACC) of the Czech Republic annulled the judgment of the Regional Court in Hradec Králové, which had previously annulled the tax assessmentA tax assessment is a formal determination made by a tax authority to calculate the amount of tax an individual or entity owes. It is a comprehensive evaluation based on financial records, declared income, expenses, deductions, and any applicable tax laws or regulations. Tax assessments may arise from routine self-assessments by taxpayers, or they may be conducted by revenue authorities... More decision of the Odvolací finanční ředitelství against Stora Enso Wood Products Ždírec s.r.o.

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Boston Scientific v. CIT (India): Permanent Establishment and TP Implications

Dispute Resolution, India, International, International Tax, Permanent Establishment, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

This case, heard by the Indian courts, raises significant issues concerning the activities that constitute a PE, especially in relation to 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 (MNEs) operating through subsidiaries.

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CEPSA’s Transfer Pricing Case: Spain vs Compañía Española de Petróleos (CEPSA)

International, Spain, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

The Supreme Court ruled on the tax disputeTax Disputes arise when there is a disagreement between taxpayers and tax authorities regarding the interpretation or application of tax laws. These disputes may concern various issues such as the accuracy of a tax return, the eligibility for tax deductions or credits, the correct amount of tax liability, or transfer pricing adjustments. Tax disputes can lead to lengthy legal proceedings... More between the Spanish tax authorities and CEPSA concerning the allocation of general management and administration expenses to CEPSA’s Permanent Establishment (PE) in Algeria.

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Germany vs “MEAT PE”: Taxation of the Domestic Permanent Establishment of a Hungarian Corporation

Germany, International, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

This case examines the taxation of the domestic permanent establishment of a Hungarian corporation operating in Germany. The central issue revolves around the adjustment of profits under Section 1(5) of the Foreign Tax Act (AStG), specifically how the relationship between the Hungarian corporation and its German branch was treated for tax purposes.

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ST Dupont vs. France Transfer Pricing Judgment

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

ST Dupont, a French luxury manufacturer, contested additional tax assessmentsA tax assessment is a formal determination made by a tax authority to calculate the amount of tax an individual or entity owes. It is a comprehensive evaluation based on financial records, declared income, expenses, deductions, and any applicable tax laws or regulations. Tax assessments may arise from routine self-assessments by taxpayers, or they may be conducted by revenue authorities... More and penalties imposed by the French tax authorities for the financial years 2009 to 2011. The authorities argued that ST Dupont had transferred profits to its subsidiary in Hong Kong by selling products at lower-than-arm’s-length prices.

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Sociedade Unipessoal, LDA vs Portugal

FP News, International Tax, Portugal, Postgraduate Programmes in Transfer Pricing, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / ATL-Editor

This case involves a dispute over the deductibility of financial costs related to loans taken out by the taxpayer (A…, Sociedade Unipessoal, LDA) to finance the acquisition of a 70% shareholding in a related company (C…). The Portuguese Tax AuthorityTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... More (AT) disallowed the deduction, arguing that these financial costs were not indispensable for generating taxable incomeThe tax base is a fundamental concept in taxation, representing the total amount of economic activity or assets upon which a tax is levied. It is the foundation upon which governments calculate the amount of tax owed, based on factors like income, property value, sales, or corporate profits. Understanding the tax base is essential for tax professionals, businesses, and policymakers,... More.

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Germany vs “Z Pipeline”: Transfer Pricing Disputes in Multinational Operations

Dispute Resolution, Germany, International, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

The FG Düsseldorf judgment of May 12, 2023, 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 dispute of a multinational enterprise operating a pipeline network across Germany, Belgium, and the Netherlands. The court found that the defendant’s method of profit allocation did not align with the arm’s length principle and violated the existing double taxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... More treaties.

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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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Skechers USA Inc. vs. USA

FP News, International, Postgraduate Programmes in Transfer Pricing, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing, United States / ATL-Editor

The Wisconsin Tax Appeals Commission ruled in favour of the Wisconsin Department of Revenue, affirming its disallowance of royalty deductions claimed by Skechers USA Inc. in relation to intercompany transactions between Skechers and its subsidiary, Skechers USA Inc. II

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