Trial typically begins with opening statements, followed by the taxpayer’s case-in-chief and the government’s presentation of evidence.
Fact witnesses may include corporate officers, finance personnel, and operational managers who can testify regarding the functions performed, assets employed, and risks assumed by different entities within the group. Expert witnesses often include economists addressing transfer pricing methodology, industry experts describing market conditions, and, in some cases, foreign law experts.
Documentary evidence commonly includes intercompany agreements, transfer pricing studies, corporate records, and treaty or regulatory materials. In District Court cases, a jury may decide factual questions.
Next, let’s understand the fifth stage of international tax litigation: post-trial briefing. During this stage, the parties submit written arguments summarizing the evidence, legal authorities, and positions presented during trial. These briefs assist the court in evaluating the issues before issuing a decision.