MAXIM / Associates obtains a notable solution in terms of transfer pricing

We are delighted to share a favorable solution obtained by our team in terms of transfer pricing, which supports companies that carry out operations with intra-group companies/ affiliates.

Specifically, the court validated the argument that, when analyzing the transfer pricing documentation prepared by the taxpayer, the tax authority has the opportunity to change the sample of comparable companies and, implicitly, the level of the market price, only in exceptional cases, where the taxpayer provides transfer pricing documentation that is not compliant with the secondary legislation. Thus, the Bihor Court validated the reasoning according to which, if the taxpayer used a certain database to identify comparable companies, the tax authority cannot disregard this aspect and cannot resort to other databases in order to verify the compliance of the transfer pricing documentation with the "arm`s length" principle.

The solution of the Bihor Court is a notable success, as it confirms that the relationship between taxpayers and tax authorities must be governed by the principle of predictability and legal certainty, being essential that any taxpayer can anticipate the consequences of their own deeds or accounting records.