Distributors with Losses – The Supreme Administrative Court Overturned the Administrative Court’s Decision

In early April 2020 the Supreme Administrative Court published its ruling SAC 2020:34 on transfer pricing of a loss-making distributor. In addition to a distributor's ability to incur long-term losses, the case also highlights the importance of identifying the relevant related-party transactions to be transfer priced, as well as it considers issues related to the selection of the tested party.