Transfer Pricing Rules under the ECJ's Scrutiny: Green Light for Non-Arm’s Length Transactions?

S. Buriak & R. Petruzzi, Transfer Pricing Rules under the ECJ's Scrutiny: Green Light for Non-Arm’s Length Transactions?, 25 Intl. Transfer Pricing J. 5 (2018), Journal Articles & Papers IBFD.

12 Pages Posted: 23 Feb 2021

See all articles by Svitlana Buriak

Svitlana Buriak

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

Raffaele Petruzzi

WU Transfer Pricing Center

Date Written: August 16, 2018

Abstract

This article analyses the ECJ decision in Hornbach-Baumarkt (C-382/16) from 31 May 2018 and its implications for the transfer pricing legislations of EU Member States. First, to argue that cross-border transactions targeted by the arm’s length principle are comparable to purely domestic ones, the article scrutinizes the situations when the application of the transfer pricing rules is domestically relevant. Second, the article examines the justification of balanced allocation of taxing powers to the restrictive measure and its possible criteria for proportionality. Finally, the article analyses whether the ECJ allows related parties to act on non-arm’s length terms within the European Union.

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

JEL Classification: K33, K34

Suggested Citation

Buriak, Svitlana and Petruzzi, Raffaele, Transfer Pricing Rules under the ECJ's Scrutiny: Green Light for Non-Arm’s Length Transactions? (August 16, 2018). S. Buriak & R. Petruzzi, Transfer Pricing Rules under the ECJ's Scrutiny: Green Light for Non-Arm’s Length Transactions?, 25 Intl. Transfer Pricing J. 5 (2018), Journal Articles & Papers IBFD., Available at SSRN: https://ssrn.com/abstract=3746890

Svitlana Buriak (Contact Author)

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

Vienna
Austria

Raffaele Petruzzi

WU Transfer Pricing Center ( email )

Vienna
Austria

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