Popovici Nitu Stoica & Asociatii has successfully represented Azomures before Romania's High Court of Cassation and Justice in a dispute hinging on intra-group tax relations.
According to the firm, through the high court's decision, "the contested administrative-fiscal acts were annulled in part, with regard to the additional profit tax and accessories established by the fiscal bodies as a result of the rejection of the deductibility of expenses with the services provided by affiliated companies." The court also required the tax authorities to return the amount for which the cancellation was ordered, with interest.
PNSA had initially "obtained a favorable decision at the Targu Mures Court of Appeal, upheld by the High Court of Cassation and Justice, whereby the court, definitively: (i) held that the method of internal comparison of the prices used by the company is the most appropriate to establish whether the prices for the services provided by the affiliated companies comply with the principle of market value, (ii) considered deductible when calculating the profit tax the expenses for the handling, storage and transshipment services provided by the affiliated companies and (iii) found that the profit tax and accessories related to the adjustment of expenses with the services provided by the affiliated companies were illegally determined by the tax authorities."
The PNSA team included Partner Raluca Rusu, Of Counsels Mihaela Vrabie and Mihaela Pohaci, and Managing Associate Bianca Chiurtu.