Freedom of Establishment and Transfer Pricing Threats for the EU Single Market

R. Petruzzi & S. Buriak, Freedom of Establishment and Transfer Pricing Threats for the EU Single Market, 25 Intl. Transfer Pricing J. 4 (2018), Journal Articles & Papers IBFD

11 Pages Posted: 23 Feb 2021

See all articles by Raffaele Petruzzi

Raffaele Petruzzi

WU Transfer Pricing Center

Svitlana Buriak

Vienna University of Economics and Business - Institute for Austrian and International Tax Law

Date Written: May 28, 2018

Abstract

This article aims to examine the arguments and conclusions made by Advocate General Bobek in his Opinion delivered on 14 December 2017 in Hornbach-Baumarkt (C-382/16) and their potential consequences for taxpayers in EU Member States. In particular, it argues that cross-border situations targeted by the arm’s length principle (ALP) are comparable with purely domestic situations, which escape the burden of compliance with the ALP. The German transfer pricing rules may be considered disproportionate to the aim they pursue due to the limitation on a taxpayer’s rights to provide the commercial justifications for the transactions that do not comply with the ALP resulting from the parent company’s status as a shareholder.

Keywords: EU Fundamental Freedoms, ALP, Hornbach-Baumarkt, C-382/16, Freedom of Establishment, Commercial Justifications

JEL Classification: K33, K34

Suggested Citation

Petruzzi, Raffaele and Buriak, Svitlana, Freedom of Establishment and Transfer Pricing Threats for the EU Single Market (May 28, 2018). R. Petruzzi & S. Buriak, Freedom of Establishment and Transfer Pricing Threats for the EU Single Market, 25 Intl. Transfer Pricing J. 4 (2018), Journal Articles & Papers IBFD, Available at SSRN: https://ssrn.com/abstract=3746887

Raffaele Petruzzi

WU Transfer Pricing Center ( email )

Vienna
Austria

Svitlana Buriak (Contact Author)

Vienna University of Economics and Business - Institute for Austrian and International Tax Law ( email )

Vienna
Austria

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