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.
“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.
RTPR litigation practice has extensive experience in various fields such as tax litigation, competition law, intellectual property, information technology, administrative litigation, national and international arbitration.
RTPR is one of the most experienced and appreciated law firms in Romania, recognised as such by the Legal 500, Chambers and IFLR1000 – the most reputed international legal directories – which constantly include RTPR on top tiers in their rankings for various practice areas, such as Banking and Finance, Corporate/M&A, Capital Markets, Dispute Resolution, Competition, Energy and natural resources, Real Estate and Construction, Employment and Intellectual Property.