Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
Denial of Preferential Treatment under SAFTA overturned where unchallenged Country of Origin certificate warranted exemption under Notification benefi...
Continuing offence of money-laundering: discharge set aside and proceedings reinstated where laundering continued after inclusion of predicate offence...
Tribunal considered selection of the appropriate tested party...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustment.
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Tribunal considered selection of the appropriate tested party for transfer pricing and held the taxpayer's diamond division is the least complex entity and therefore the appropriate tested party; this conclusion rested on functional analysis showing the division performed routine buying, assortment and sales with modest assets and workforce, and on the fact the TPO accepted the same unit as tested party in a subsequent assessment year. The decision also notes authority that foreign associated enterprises are not precluded from being tested parties where they are less complex than the taxpayer.
Tribunal considered selection of the appropriate tested party for transfer pricing and held the taxpayer's diamond division is the least complex entity and therefore the appropriate tested party; this conclusion rested on functional analysis showing the division performed routine buying, assortment and sales with modest assets and workforce, and on the fact the TPO accepted the same unit as tested party in a subsequent assessment year. The decision also notes authority that foreign associated enterprises are not precluded from being tested parties where they are less complex than the taxpayer.
Note: It is a system-generated summary and is for quick reference only.