In a transfer pricing case between the Peruvian tax authorities (SUNAT) and Repsol Comercializadora de Gas S.A. where the tax court had previously decided in favor of Repsol, the Supreme Court set aside the decision of the tax court and established the following rules as binding precedent of mandatory compliance: “3.47.1. In order to determine whether, within an administrative procedure of partial or definitive audit referring to transfer pricing, the guarantee of reasonable time has been violated, the following must be analyzed and evaluated: (i) that the partial or definitive audit carried out by the tax administration is referred to the application of transfer pricing rules; (ii) that it involves companies linked to or through countries or territories of low or no taxation; (iii) the complexity to obtain the information and if the same is located in other territorial areas; (iv) the conduct of the taxpayer in the delivery of information and/or the requested extensions; (v) the conduct of the administration; and (vi) the evaluation as a whole of the above-mentioned factors. 3.47.2. In the partial and/or definitive audit in which the transfer pricing rules are applied, the suspension of the audit period regulated by numeral 6 of article 62-A of the Sole Ordered Text of the Tax Code is applicable, respecting the reasonable term.” Click here for English Translation Click here for other translation ...