Banana case sets precedent for commodities in Ecuador
March 15, 2011
Sophie Ashley - TPW
A legal battle between Exportadora Bananera Noboa (EBN), Ecuador’s largest corporate conglomerate, and the Tax Administration (SRI) is coming to an end in Ecuador, setting important precedents for the transfer pricing of commodities. Alexis Carrera, of Ernst & Young in Quito, analyses the case.
The adjustment, for 2005 banana exports of EBN, is for more than $226 million just for transfer pricing matters, which, added to other differences being discussed, represents about $90 million in taxes, interests and extra charges.
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