On April 26th, 2021, the Danish Supreme Administrative Court ruled in favor of the Danish tax administration (TA) in the Tetra Pak case. This decision is part of a series of rulings in which the Court has dealt with similar problems concerning the adequacy of the transfer pricing (TP) documentation submitted by taxpayers. In this case, the dispute involved two main issues: first, whether the absence of a comparability analysis in the TP documentation submitted by Tetra Pak Processing Systems A/S was compliant with the Danish TP rules, and second, whether the discretionary assessment issued by the TA regarding the financial years 2005 to 2009 was reasonable. This decision highlights the relevance of preparing adequate TP documentation in order to avoid future disputes with tax authorities and, in this case, to prevent discretionary assessments on the taxable income of the taxpayer.
