Top Polish Court Backs Taxpayer on Trademark Transfer Pricing

Polish tax authorities improperly reclassified licensing fees as trademark administration services under tax rules that didn’t apply at the time of a company’s transactions, the country’s top court ruled.

The ruling of the Supreme Administrative Court on Wednesday means the authorities will have to reassess transfer pricing adjustments against the company, an unidentified Polish producer of fertilizers and nitrogen compounds.

The court’s decision consists of three separate rulings backing the company, which in 2013 financed the transfer of its trademarks to a related entity and then, over three consecutive tax years, paid this entity licensing fees for the trademarks’ ...