CASES Reviewed Last Week (19 November 2024)
Dr Daniel N Erasmus (PhD USTCP Int'l Tax Attorney)
International Tax Litigation Attorney | Transfer Pricing Specialist | Tax Academic
This week I take a look at 3 new Transfer Pricing cases from the last 2 months.
Please note: Case summaries generated by The Academy of Tax Law.
CASE #1
Italy vs Ilapak
The Italy v. Ilapark SPA case brings forward critical issues in transfer pricing, specifically the appropriateness of the selected transfer pricing method for a business entity under Italy’s tax framework and its alignment with OECD guidelines. Ilapark Italia SPA, an Italian subsidiary within the Ilapak Group, was involved in a dispute with the Italian Revenue Agency over tax assessments concerning intercompany pricing. The core issue was whether the chosen TP method accurately reflected the “normality” of prices in a manner compliant with Italian tax standards.
CASE #2
Slovakia vs Minebea Access Solutions
The Minebea Slovakia transfer pricing case highlights the intricate challenges of aligning intra-group transactions with arm’s length principles. In this landmark ruling, the Supreme Administrative Court of Slovakia dismissed a cassation complaint filed by Minebea Access Solutions Slovakia s.r.o., a subsidiary of the Valeo Group. The decision upheld a tax authority adjustment that disallowed the deduction of €1,837,565.62 for management and technical services and increased the taxable base by €6,288,398 through the application of the median operating margin method.
CASE #3
Portugal vs A Mining SA
The case concerns a tax dispute between A…, S.A., a Portuguese mining company, and AT – Tax and Customs Authority. At the heart of the issue was the sale of an industrial wash plant by A… to B…, S.A., at a symbolic price of €1. AT contended that the sale breached transfer pricing principles under Article 58 of the IRC Code. It argued that a special relationship existed between the parties at the time of negotiating the transaction, which enabled a non-arm’s length price to be set, resulting in an under-reported tax liability.
For more cases and articles go to my website at www.taxriskmanagement.com
POSTGRADUATE EDUCATION
These topics are dealt with in depth in the following Postgraduate Programmes offered by Middlesex University in partnership with the Academy of Tax Law and Informa Connect:
!!NEW PROGRAMME!!
POSTGRADUATE CERTIFICATE in the Mechanics of Tax Risk Management
The Tax Risk Management programme is meticulously designed to equip professionals with the expertise required to navigate the complexities of tax risk and dispute resolution in a global business environment.
This programme offers a comprehensive curriculum that delves deep into identifying, assessing, and mitigating tax risks while providing practical skills for effective tax governance. Participants will explore key areas such as tax risk assessment, transfer pricing challenges for multinational enterprises, and strategies for managing tax audits and disputes.
APPLICATIONS NOW BEING ACCEPTED (Closes End of November 2024)
EXISTING PROGRAMMES
Postgraduate Programmes in Transfer Pricing:
APPLICATIONS NOW BEING ACCEPTED (Closes End of March 2025)
Postgraduate Programmes in International Taxation:
APPLICATIONS NOW BEING ACCEPTED (Closes End of March 2025)
Have some questions about the programmes?
Please don't hesitate to contact our Education Consultant, Ben Ellis, at [email protected] or call us on +44(0)2080522710.