General Administration of Taxes charges the Nestlé Morocco group for $110 million
The Tax Administration had rejected the Swiss firm’s transfer pricing technique in Morocco.
The General Administration of Taxes (DGI) sent a tax recall to the Nestlé Morocco Group, which specializes in Nestlé’s coffee and milk products, seeking performance of $110 million, or 1 billion dirhams, according to the Financial Afrik.
Nestlé Morocco was accused of moving earnings earned in Morocco to Switzerland, according to the newspaper, and now had to pay 1 billion dirhams in taxes.
However, the General Administration of Taxes had rejected the Swiss firm’s transfer pricing technique in Morocco, which gathered purchases and sales of goods and services between the company and other group companies as well as the parent company.
According to the magazine, the Swiss business hired a lawyer to represent its division in the National Tax Appeal Commission proceedings.
Thus, Nestlé Morocco approached the tax office to reach an acceptable arrangement and secure a tax adjustment, as per the magazine.