What the future holds for Brazil’s judicial and administrative systems
December 20, 2011
Throughout the year, Brazil has been at the centre for conflicting decisions issued by the administrative and judicial courts on transfer pricing matters.
One of the most controversial disputes relates to the resale price less profit (RPL 60) calculation method. As outlined in the article “New decision on transfer pricing “may become important precedent” in Brazil”, Law No. 9430/96 established how to calculate the resale method benchmark, but Normative Instruction No 243/02 (NI 243) introduced yet another calculation method which diverged from the first one. With NI 243 method, the taxpayer undoubtedly reaches a significantly different benchmark and, most of the times, a higher difference to be taxed than the one he would have reached if he followed the wording of Law No. 9430/96.
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