Cross-border payments to a US associated enterprise were...

Cross-border payments to a US associated enterprise were examined for classification as fees for included services under the "make available" concept and for withholding-tax noncompliance leading to disallowance under withholding provisions. The tribunal found the nature and basis of claimed marketing, administrative and process outsourcing charges unexplained and disproportionately high (about 53% of revenue); some costs may qualify as fees for included services. Absent proper documentary bases, the tribunal directed treating separately claimed marketing expenses as allowable but limited to 20% if unsubstantiated, allowed hearing before final disallowance, and remitted accounting treatment of recurring refund provisions to the AO for verification and adjustment.