In this case, the General Directorate for the Administration of Large Taxpayers (DGAMC) considered that in the situation of the existence of a research and development agreement concluded at the level of the group, the expenses incurred by the members of the group represent royalties for the transfer of know-how and not provision of services. However, based on the RTPR lawyers’ pleading, both the Oradea Court of Appeal and the HCCJ ruled that the Company – a producer of spare parts and equipment for the automotive industry – correctly addressed the fiscal treatment of these expenses.

Yet, the real complexity of the case resulted from the need to clarify the legal nature of certain legal concepts specific to other areas of law than fiscal, such as know-how, in the context of intragroup relationship in a multinational organisation.

Last but not least, the presence of the cross-border element should be mentioned, because in this case there were analysed operations that took place in several jurisdictions and not only in Romania, such as Germany and the Netherlands.

The RTPR team of lawyers involved in this project was made of Alexandru Stanoiu (Counsel) and Ana Popa (Nedelcu) (Senior Associate).

Alexandru Stanoiu declared: “This victory is part of a series of important successes of the RTPR tax litigation team, which matched the client's expectations in an extremely complex case even for tax professionals, due to its interdisciplinary nature. This is another proof that hard work, team spirit and dedication combined with experience and skill lead to excellent results for the client and great satisfaction for us as lawyers.”

Ana Popa said: “We are very pleased with the favourable solution obtained for our client in this extremely interesting tax dispute, which combined both specific aspects of tax law and aspects of intellectual property law, such as the notion of know-how and the implications of a transfer of know-how.”