– Experts from the Lower Silesian KAS conducted a customs and tax inspection at a company producing glass products used in construction. When calculating the profitability of transactions between related entities, the “transactional net margin” method was applied – reports Agnieszka Rzeźnicka-Gniadek, press spokesperson for the Lower Silesian KAS.
And she explains:
The “transactional net margin” method is one of the methods used to verify transfer prices applied between related entities. It involves examining the profit ratio achieved by the inspected entity in transactions with a related entity and comparing it with the profitability achieved by other unrelated entities on the market.
Experts from the Lower Silesian KAS determined that the inspected company applied a non-market margin to transactions with related entities. The result? The company filed an amended CIT return and paid more than PLN 1 million in tax, together with interest.