Before trial, the parties should comply with the court’s standing pretrial order, including filing trial memoranda, identifying witnesses, exchanging expert reports, and disclosing exhibits.
Expert reports are particularly important in transfer pricing cases. Each party’s economist sets out the chosen method, comparable company analysis, and arm’s-length conclusions, followed by rebuttal reports.
These reports frequently address cross-border issues such as the allocation of functions, assets, and risks among related parties, including DEMPE functions for intangibles and relevant market conditions in different jurisdictions.
Next, let’s understand the fourth stage of international tax litigation: the trial stage. During this stage, the parties present evidence, examine witnesses, and make legal arguments before the court. The court then evaluates the evidence and legal issues to resolve the dispute.