Publication result detail

The Czech Republic v. ERT Automotive Bohemia s.r.o.

SOLILOVÁ, V.; BRYCHTA, K.

Original Title

The Czech Republic v. ERT Automotive Bohemia s.r.o.

English Title

The Czech Republic v. ERT Automotive Bohemia s.r.o.

Type

Chapter in a book

Original Abstract

The judgment in the presented case is a contribution to the field of establishing rules for a comparative analysis and selecting a transaction that is comparable to one between a related party. This judgment of the Supreme Administrative Court thus brings a further piece (clarification) on selected aspects related to the rules of proof and burden of proof. One of the main conclusions to be drawn from the judgment in question is that a transaction that has a broader subject can be used as an independent transaction for determining a reference price. However, it is necessary to comply with the condition that such a ‘broader’ transaction must still be comparable, at least at its core, to the related party transaction and must be capable of being adjusted. In that connection, the Supreme Administrative Court referred to its case law and also emphasized that the subject of the transaction under review (i.e., related party transaction) must constitute a substantial part of the ‘broader’ unrelated party one and that the parties’ position to the two transactions must not differ in any substantial way (i.e., the function-risk profiles must be comparable).

English abstract

The judgment in the presented case is a contribution to the field of establishing rules for a comparative analysis and selecting a transaction that is comparable to one between a related party. This judgment of the Supreme Administrative Court thus brings a further piece (clarification) on selected aspects related to the rules of proof and burden of proof. One of the main conclusions to be drawn from the judgment in question is that a transaction that has a broader subject can be used as an independent transaction for determining a reference price. However, it is necessary to comply with the condition that such a ‘broader’ transaction must still be comparable, at least at its core, to the related party transaction and must be capable of being adjusted. In that connection, the Supreme Administrative Court referred to its case law and also emphasized that the subject of the transaction under review (i.e., related party transaction) must constitute a substantial part of the ‘broader’ unrelated party one and that the parties’ position to the two transactions must not differ in any substantial way (i.e., the function-risk profiles must be comparable).

Keywords

Burden of Proof, Transfer Pricing

Key words in English

Burden of Proof, Transfer Pricing

Authors

SOLILOVÁ, V.; BRYCHTA, K.

Released

24.09.2025

Publisher

Wolter Kluwer

Location

AH Alphen aan den Rijn

ISBN

9789403513294

Book

Transfer Pricing Case Law Around the World 2025

Pages from

39

Pages to

59

Pages count

21

URL

https://law-store.wolterskluwer.com/s/product/transfer-pricing-case-law-around-the-world-2024/01tPg00000BeiIwIAJ?srsltid=AfmBOoqnryjswpJOi6eJmTr5au8NVyBnujL8hIC_04LoZ-3qFtccgjp1

BibTex

@inbook{BUT198944,
  author="{} and Karel {Brychta}",
  title="The Czech Republic v. ERT Automotive Bohemia s.r.o.",
  booktitle="Transfer Pricing Case Law Around the World 2025",
  year="2025",
  publisher="Wolter Kluwer",
  address="AH Alphen aan den Rijn",
  edition="1",
  pages="39--59",
  isbn="9789403513294",
  url="https://law-store.wolterskluwer.com/s/product/transfer-pricing-case-law-around-the-world-2024/01tPg00000BeiIwIAJ?srsltid=AfmBOoqnryjswpJOi6eJmTr5au8NVyBnujL8hIC_04LoZ-3qFtccgjp1"
}