Argentina vs Boehringer Ingelheim S.A. , April 2012, Tribunal Fiscal de la Nación, Case No 26713

Category: Benchmark, Range and Median, Transfer Pricing Methods | Tag: , , , ,
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The tax authorities had not contested but have accepted the method (TNMM) used by the company to assess their transactions with related or affiliated parties, the dispute is therefore limited to certain aspects of the application of the methodology.

Boehringer had used ROS indicator (operating profit margin) which the tax authorities accepted for the resale function but applied the ROTC indicator (profit margin on costs and expenses) for the manufacturing function.

On the use of foreign comparables the tax court held in favor of the company and revoked the adjustment back to the authorities.

 

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Tribunal Fiscal de la Nación





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