CASES Reviewed This Week (22 October 2024)
Dr Daniel N Erasmus (PhD USTCP Int'l Tax Attorney)
International Tax Litigation Attorney | Transfer Pricing Specialist | Tax Academic
The common theme across this weeks three cases is Transfer Pricing and Blocked Income. I will give a detailed overview of this in my next newsletter.
First take a look at these interesting cases!
Please note: Case summaries generated by The Academy of Tax Law .
CASE #1
Coca Cola vs USA
The Coca-Cola case is a landmark transfer pricing dispute between The Coca-Cola Company (TCCC) and the Internal Revenue Service (IRS). The case centers on the appropriate transfer pricing method to allocate profits between Coca-Cola’s U.S. parent company and its foreign subsidiaries. The IRS argued that Coca-Cola’s existing transfer pricing method resulted in underpayment of U.S. taxes, leading to a significant tax deficiency. This detailed explanation will cover the background, key issues, court decisions, and the importance of the Resale Price Method (RPM) in the context of this case.
CASE #2
EAC vs DENMARK
This case revolves around whether the taxable income of H1 and H2 should be increased under Denmark’s Tax Assessment Act, Section 2, by reclassifying payments between related entities as interest or royalties. The case encompasses two separate tax disputes, one involving whether interest should be applied to royalties due between a Danish parent company and its Venezuelan subsidiary and another focusing on classifying extraordinary dividends as royalty payments.
CASE #3
3M vs USA
This case involved the 3M Company and its subsidiaries (collectively referred to as the “3M consolidated group”) disputing a section 482 adjustment made by the Commissioner of Internal Revenue. The dispute focused on the income tax treatment of intellectual property (IP) transactions between 3M’s U.S. subsidiaries and its Brazilian subsidiary, 3M do Brasil Ltda (3M Brazil), for the tax year 2006.
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 October 2024)
Postgraduate Programmes in International Taxation:
APPLICATIONS NOW BEING ACCEPTED (Closes End of October 2024)
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.