Spain: Judgment given by the Supreme Court of Justice on intra-group operations

Tax Controversy & Dispute Resolution ()
A recent judgment of the Supreme Court of Justice in Spain has established that Spanish laws on transfer pricing requiring exhaustive documentation on the transfer prices between associated companies and imposing penalties if such companies do not keep documentation regarding transfer prices or if the documentation they keep is incomplete or inaccurate are constitutional and meet the principles of legality and proportionality. The Court only considers that certain matters related to the secondary adjustment and the tax procedures for appeals for transfer pricing adjustments are not consistent with the law.