Implications of Recent Supreme Court Decision on Transfer Pricing: An Update on the Arm’s Length Principle, Anti-Avoidance and Burden of Proof

In the Nylstar case, the most recent ruling by the Supreme Court in a case concerning transfer pricing, the Court focused on the legal classification and relevance of the domestic transfer pricing regime, and seemed to establish a new interpretation principle regarding the burden of proof. Indeed, the case provides a good reason for a general discussion of the transfer pricing aspects from an Italian perspective and necessitates an update on the arm’s length principle, anti-avoidance and burden of proof matters.