2023 Marcum Year-End Tax Guide

THE MARCUM YEAR-END TAX GUIDE 2023 65

Argentinian Customs Authority v. Materia Pampa S.A. The Argentinian Tax Court confirmed the transfer pricing adjustment conducted by the Customs Authority to the Argentinian company Materia Pampa S.A. In this case, the Customs Authority challenged the triangulation scheme used by the Argentinian company under which it exported products to a Brazilian company, Companhia De Bedidas Das Americas in Brazil (Ambev), via a related party located in Uruguay, Maltería Uruguay S.A. The Argentinean taxpayer failed to explain the economic reasons behind the significant differences between the price declared on exports to Uruguay and the price used for the subsequent final shipment to Brazil. The Customs Authority applied the ALP to

redetermine export prices between related parties. This case illustrates the interplay between customs valuation and transfer pricing. Commodity trading is an important economic activity for several countries in the world, to the extent that the BEPS Action 10 dealing with high-risk transactions included a deliverable dedicated to cross border commodities transactions whose recommendations were incorporated into the OECD Guidelines.

CONCLUSION While all these recent changes in the tax environment introduce new complexity to transfer pricing, they also create international tax and transfer pricing planning opportunities. Now is the time for large MNEs, as well as small and mid-sized MNEs, to take a fresh look at their transfer pricing policies and to identify new opportunities to maximize deductibility further and reduce global effective tax rates. Marcum offers a full range of assurance, tax, and advisory services to clients operating businesses abroad who seek financing in the U.S. markets. From international business structuring to complex tax and transfer pricing matters, our professionals bring the Marcum standard of best-in-class service and a depth of knowledge to the international arena. Marcum’s International Tax Services group provides a broad range of international tax services to both domestic and foreign clients with global operations. Our international tax team has extensive experience in tax planning, cross-border transactions, and international tax compliance. Likewise, Marcum’s International Tax Services Group has the technical knowledge and skill to assist in transfer pricing support for clients, including planning, preparation of documentation to confirm with IRS and OECD requirements, and assistance in defending tax return positions in the event of a tax audit.

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