Our team successfully represented a company engaged in the energy sector in a Transfer Pricing case before the Court of Appeal.
Tax administration without having challenged the company’s Transfer Pricing file, contested the purchase price of power, imposing taxes to the total amount of approximately €1,3M.
In particular tax administration argued that the company should have purchased power in a lower price than the one agreed with the affiliate company.
On the other hand, the company argued that tax administration’s comparables were erroneous since they disregarded critical aspects of the transaction and in any case, disregarded the fact that the time of the transaction, the quantity of the power and the place of the delivery remain critical factors in terms of comparability in the industry.
Finally, the Court decided that tax administration’s omissions had significant impact on the outcome of the comparison and upheld the company’s appeal in this respect.
Our core team consisted of partners Elina Filippou and Dimitris Gialouris, and Elina Belouli, senior associate, and Panagiotis Stamatogiannis, senior manager.