September 2025 A recent Swiss transfer pricing case examined whether taxpayers can rely on multi-year margin averaging when assessing compliance with the arm’s length principle. The dispute concerned the use of several years of financial results in a benchmarking analysis, rather than evaluating profitability on a year-by-year basis. The taxpayer argued that multi-year data provides a more reliable measure of economic performance by reducing the impact of temporary market fluctuations and...

12 September 2025 France’s Digital Services Tax (“GAFA Tax”) controversy concerns whether countries can impose unilateral taxes on large digital companies generating significant revenue from local users, even where those companies have limited physical presence in the jurisdiction. France introduced the tax after concerns that highly digitalized businesses were benefiting from the French market while paying relatively low levels of corporate income tax. The tax applies a 3% levy on certain...

June 12, 2025 The Zuch v. Commissioner concerns whether the U.S. Tax Court retains jurisdiction over a case when the underlying IRS collection action is no longer active. The taxpayer initiated proceedings under the Collection Due Process (CDP) rules, but during the case, the IRS resolved the liability, effectively removing the basis for the dispute. The case raised the question of whether the Tax Court can continue to hear a matter once there is no ongoing collection activity. The Court held...