AMP expenses and international transaction treatment rejected absent evidence linking spend to associated enterprise relationship.

Advertising, marketing and promotional expenses were examined to determine whether they constituted a separate international transaction capable of benchmarking under the Bright Line Test. The court treated the issue as factual, noting that the expenses were incurred in the normal course of business and that no material showed they were a transaction with associated enterprises. Relying on earlier decisions, it reiterated that AMP expenditure does not, by itself, amount to a separate international transaction unless there is evidence linking it to the associated enterprise relationship. On that basis, no substantial question of law arose.

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Issues: Whether Advertising, Marketing and Promotional expenses constituted a separate international transaction and could be benchmarked by the Bright Line Test, and whether any substantial question of law arose for consideration.

Analysis: The dispute turned on the factual finding that the AMP expenses were incurred in the normal course of business and no material established that they were a transaction between the assessee and its associated enterprises. The issue was treated as covered by earlier decisions holding that such expenses do not, by themselves, amount to a separate international transaction in the absence of evidence linking them to the associated enterprise relationship. On that footing, no substantial question of law was found to arise.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

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