Litigation and disputes

Prior to an assignment, we identify which related-party transactions are most audit-sensitive, in which countries investigations may take place and where corrections may be imposed. Using impact assessments, we develop both realistic and worst-case scenarios, like when residual profits are allocated to one country and only a routine margin remains elsewhere. We take practical considerations into account: due to limited capacity at the Dutch Tax and Customs Administration, book audits are often delayed. As a result, the TP policy of many companies is assessed retroactively, typically after three or four years. In practice, this may lead to corrections extending over a period of five years. Early analysis and consistent documentation are therefore crucial.

If a dispute arises, we will determine the strategy together with you and our legal specialists. Where possible, we will seek preliminary consultation or a solution via an Advance Pricing Agreement (APA) or a Mutual Agreement Procedure (MAP) based on a tax treaty or the Tax Arbitration Act. If an objection and/or (higher) appeal is lodged, we will ensure that the case file is carefully prepared and that a clear litigation strategy is in place. We have extensive experience in substantiating the burden of proof and conducting objection and appeal proceedings. We ensure a complete and coherent file, monitor deadlines and focus on clear procedural documents and effective representation. We also assist you with access to the file, hearings, and similar procedural steps.

In TP disputes, the Tax and Customs Administration must demonstrate that a transfer price applied by the taxpayer deviates from what independent parties would agree to. This gives rise to the presumption that the advantage or disadvantage that has arisen as a result is due to the affiliation. That presumption can be rebutted if the taxpayer raises sufficient doubt about its accuracy. A carefully substantiated TP policy and adequate rebuttal of the presumption of evidence prevent the burden of proof from being reversed and increased. This is essential in (impending) TP disputes. The question is who should substantiate the business nature of the transaction: the Tax and Customs Administration or the taxpayer.

We will keep you informed throughout the process about the time and costs involved (a MAP often takes years, but proceedings usually take even longer) and will exploit procedural advantages where appropriate. In tax cases, a solicitor is not required before the Supreme Court; we will represent you effectively and creatively within the given framework, aiming to achieve a predictable and sustainable outcome.