Impresa Pizzarotti and another v Agenţia Naţională de Administrare Fiscală – Direcţia Generală de Administrare a Marilor Contribuabili

In Impresa Pizzarotti and another v Agenţia Naţională de Administrare Fiscală – Direcţia Generală de Administrare a Marilor Contribuabili (Case C 558/19) (8 October) the CJEU held that Romanian transfer pricing legislation as applied to the Romanian branch of a non-resident company did not contravene EU law.

Impresa Pizzarotti (IP) was the Romanian branch of an Italian company. It concluded as lender two loan agreements with its parent company Pizzarotti Italia for €13.7m. Under the Romanian tax code transactions between Romanian persons including branches of non-resident companies and related non-resident persons were subject to transfer pricing legislation and the Romanian tax authorities ruled that the interest rate on the loans should have been set at market value with the result that they issued an assessment for an additional €72 000 in tax. IP brought an action to the national court for...