Transfer pricing and exchange of information

The foreign company is being investigated by the foreign tax authority to which it is subject, regarding the group's transfer pricing practices. The foreign tax authority is requesting information exchange from Switzerland concerning the Swiss sister company. More specifically, the foreign tax authority is asking Switzerland to provide: 1) the annual accounts, 2) the management reports, 3) the audit reports, and 4) the tax returns of the Swiss company.

The AFC validates the exchange, considering that these are documents likely relevant to the foreign tax authority for its review of the group's transfer pricing, to which the foreign company and the Swiss company belong.

The Swiss company is seizing the Federal Administrative Court (TAF) to object to the disclosure of these documents to the foreign tax authority. The TAF upholds the decision of the Federal Tax Administration (AFC): the documents of the Swiss company will be transmitted to the foreign tax authority.

The judgment is in German. The applicant foreign state is Mongolia.

TAF, decision A-6359-2023, of 14 July 2025