RTPR wins 1 million Euros refund from tax authority (ANAF) for international car parts manufacturer
After a year of trial, the RTPR tax litigation team convinces Oradea Court of Appeal to oblige the Tax Administration to return the amount of 1 million Euros to an international car parts manufacturer. In this atypical case in the field of intra-group relationships, the main issue was to qualify the legal nature of payments made by a group entity based in Romania to another entity in the same group, based in Germany, under a multilateral research and development agreement, respectively if these payments represented expenses for the provision of services or royalties for the transfer of know-how.
The interpretation of the tax inspection authorities, which was also confirmed by the authorities responsible for the settlement of the claim, was that the respective payments represent royalties for transfer of know-how, while the RTPR team demonstrated, including by performing a technical accounting expertise in the field of taxation, that the fiscal treatment applied by the company was correct, applying the Convention for the avoidance of double taxation between Romania and Germany.
The RTPR team of lawyers involved in this project was made of Alexandru Stanoiu (Counsel) and Ana Popa (Managing Associate).
“This victory confirms the track record of important successes of the RTPR tax litigation team, which met the client’s expectations in a case of great complexity even for tax professionals. It is another proof that hard work, team spirit and dedication, combined with experience and skill lead to excellent results both for the client and a great satisfaction for us as lawyers.”, declared Alexandru Stanoiu, Counsel at RTPR.