skupina

Related parties - production in salaries must be profitable

Prices between related parties are increasingly the subject of proceedings before tax authorities and administrative courts. Currently the judgment of the Supreme Administrative Court is fundamental (hereinafter only as the "SAC") 5 Afs 194/2015 - 34 as of September 27, 2016. The SAC identifies itself with applying the method "cost +" (surcharge costs, plus costs), and states that an independent manufacturing enterprise cannot be in the loss. Market risks, foreign exchange risks are borne by a controlling person.

Citation:
An independent person within the group of related persons performs effectively "only" the part of a separated production operation and economic conditions of his/her activities are already in compliance with the Documentation and Agreement of the production completely different from the situation in which he would perform the same activities individually and comprehensively, without the inclusion within the group of related people.

Regarding the method of determining the clearing price in the documnetation it is not possible to require that the complainer bear accidental increasein fixed and other costs by himself/herself. Such a requirement would be in direct conflict with an explicitly expressed key objective use of the method for refining performance, ie. "Costs surcharge" ( " Cost Plus ") Therefore, if the complainer, who represents a detached manufacturing operation performs refining in salaries, in order to be able to cover his/her costs, plus a profit margin.

We have been intensively dealing with the hereinabove judgment and with our clients we are ready to solve steps for protection against the expected increase in the tax administration process, which will undoubtedly be based on the conclusion of the SAC.

publikováno 09.12.2016
share on fb


Kodap skupina - daňové poradenství

mini mapa ČR Choose the office

Specializované kanceláře

+420 485 228 471

info@kodap.cz

cs en de 

ETL Global
newsletter close