Transfer pricing dispute concerning import valuation adjustments. Olaechea is representing Toyota del Perú—the official distributor and manufacturer of Toyota vehicles in Peru—in a tax dispute initiated by the Peruvian Tax Authority concerning transfer pricing adjustments. The case focuses on determining the market value of vehicle and spare part import transactions with related parties for the fiscal year 2009.
Defence of transfer pricing adjustments: The Tax Authority challenged Toyota’s valuation and imposed related penalties, which Toyota contested through administrative and judicial appeals. As part of our assistance, we presented evidence supporting compliance with Peruvian transfer pricing regulations. The firm successfully argued before the Tax Court of Appeals, which overturned the Tax Authority’s determination and associated penalties.
Litigation before judicial authorities: The Tax Authority initiated contentious-administrative proceedings seeking the annulment of the Tax Court of Appeals’ decision and requesting a new ruling addressing the substantive issues. The firm is assisting Toyota with both trial court and appellate court proceedings before the Superior Court, as well as in the Supreme Court, ensuring adherence to procedural and substantive tax law principles.
Emphasis on validity of transfer pricing adjustments: The firm is preparing and presenting arguments emphasising the validity of Toyota’s transfer pricing adjustments, supported by international guidelines and local regulations. Representation includes detailed legal analysis, preparation of briefs, and participation in hearings, showcasing expertise in complex tax litigation.
Setting important precedent for import transactions: This case is highly significant, not only due to the scale of the objection raised by the Tax Administration but also because the outcome will set a crucial precedent for future imports conducted by Toyota with its related parties.
Latest development: The Supreme Court upheld the Tax Court of Appeals’ decision, affirming Toyota’s compliance with transfer pricing rules.
