Do-it-yourself transfer pricing
After the European Court’s decision in the Hornbach case, EU groups may feel a lot more comfortable about extending soft loans, or giving fee-free guarantees for external loans to their ailing subsidiaries. If this happens to result in a lower tax bill for the group, lucky them. The Court basically said that if the lending company can show that the benefit was provided for commercial reasons such as the need to provide economic support to a financially distressed group compan