SAC’s view on parent company orders
Any influencing of an uncontrolled transaction by a related party, usually a parent company, is regarded by the tax authorities as a parent company’s orders. This may be, e.g., a parent company ordering a subsidiary to sell goods to that…
Proving management services and legitimate expectations
In August, the Supreme Administrative Court closed a case concerning the tax deductibility of management services. It explained in detail the taxpayer's obligations when proving services and what the taxpayer can reasonably expect with respect to…
SAC on claiming tax loss from transfer pricing adjustments abroad
Transfer prices are at the heart of many disputes with tax administrators not just in the Czech Republic but also abroad, often dragging on over many years. If tax is additionally assessed for one of group companies abroad, is it at all possible to…
SAC paves way for assessment of additional tax on transactions with unrelated parties
The Supreme Administrative Court has opened transfer pricing’s Pandora's box by allowing tax administrators to assess additional tax based on overall profitability not just for related…
Economic turmoil also affecting transfer prices
Inflation is one of the main economic issues for 2022. The impact of high input prices and disrupted supply chains are other factors businesses must cope with. But there are also other adverse factors. The slowing economy has also revealed new…
Regional court: tax administrator erred in applying transfer pricing rules to transactions between unrelated parties
The Regional Court in Hradec Králové sided with the taxpayer against a tax administrator who, without any basis in law, treated a part of a company's transactions with independent entities as controlled transactions. The tax administrator then…
Transfer pricing: otherwise related persons and arm’s length price
The Supreme Administrative Court (SAC) has recently closed several cases dealing with the assessment of otherwise related persons - a concept from the area of transfer prices between group companies.
Germany: New transfer pricing guidelines
Transfer pricing is a hot issue at a time when all finance ministries are searching for funds to cover their exorbitant budget deficits. The German Ministry of Finance has issued new…