The tax authorities had applied the TNMM and used the interquartile range and median to determine the arm’s length income of Bayer Argentina S.A. for FY 1999 and this resulted in a tax assessment being issued where the taxable income had been adjusted upwards. Not satisfied with the assessment Bayer Argentina S.A. filed a complaint. Both the Tax Court and later the National Court set aside the assessment and decided in favour of Bayer Argentina S.A. An appeal was then brought by the tax authorities before the Supreme Court. Judgment of the Supreme Court The Supreme Court upheld the decision of the National Court and decided in favour of Bayer Argentina S.A. According to the Court, the application of the interquartile range used by the tax authorities to support the assessment of additional taxable income for FY 1999 was inadmissible, since the median and interquartile range was not applicable in the period and a contrary conclusion would seriously undermine legal certainty and would imply disregarding the need for the State to clearly prescribe the taxes and exemptions, so that taxpayers can easily adjust their respective conduct in tax matters. Click here for English Translation Click here for other translation ...

On 18 November 2022 Malta published Legal Notice 284 of 2022 whereby transfer pricing rules are implemented into its legislation. The new rules will come in to effect 1 January 2024 in relation to transactions/arrangements entered into on or after that date. For arrangements that have been entered into before that date, the rules will only apply to transactions/arrangements that are materially altered on or after that date. The new transfer pricing provisions will apply to cross border transactions/arrangements carried out between associated parties having 50% or more of common direct or indirect control ...

Effective as of 1. January 2022 Finnish Transfer Pricing legislation has been updated to align the rules with the OECD Transfer Pricing Guidelines in regards to non-recognition and recharacterisation. Going forward the arm’s length provision in the Tax Procedure Act, section 31, will include the possibility for non-recognition and recharacterisation which according to Finnish Case Law has not been possible under the previous wording of the provision ...

The French Supreme Tax Court has ruled on 2 March 2011 that the transfer pricing legislation is in conformity with the French Constitution. “The plea of SOCIÉTÉ SOUTIRAN ET COMPAGNIE, that the article 57 of code general of the taxes infringing the rights and freedoms guaranteed by the Constitution must be regarded as not serious” Click here for translation ...