A Swedish court has ruled on timelines for information used in benchmarking searches in a case involving The Absolut Company, which produces Absolut Vodka. The court concluded, supported by the OECD Transfer Pricing Guidelines, that looking at data from years after the year under review would constitute hindsight and would not be accepted.
Ukrainian law requires transfer pricing controls on transactions with foreign companies located in black-listed low-tax jurisdictions, regardless of related party status. Companies in Ukraine may be increasingly limiting business with foreign parties to avoid transfer pricing situations.
The Danish tax authority’s focus on transfer pricing has resulted in high levels of controversy over the past few years, especially in permanent establishment cases. Companies are now re-evaluating the usefulness of APAs and are frequently resorting to litigation to resolve disputes.
The US tax reform introduces changes to Subpart F stock attribution rules that are expected to result in the formation of many new controlled foreign corporations. However, the amendments leave room for interpretation with tax professionals mooting whether the new repatriation and GILTI taxes could also be triggered.
