Italian Top Court Rules Against Termoplastic on Transfer Pricing

Italy’s Supreme Court upheld a transfer pricing adjustment against cookware handle manufacturer Termoplastic FBM for 2010 and sent related adjustments for 2011-2012 back to a lower court for reconsideration.

The two rulings, published on the website of the Corte Suprema di Cassazione over the weekend, confirm the tax authority’s right to choose the transactional net margin method to assess whether intra-group pricing adequately remunerated intangible assets.

In the ruling on the 2010 tax year, released May 9, the Italian Revenue Agency won outright when the court confirmed that Italy-based La Termoplastic FBM srl had overpaid its Brazilian and Mexican ...