On 11 January 2024, the Central Administrative Court of the Southern Region in Portugal made a decision regarding the deductibility of payments made to jurisdictions with low tax rates. The case involved a major company providing aircraft maintenance, repair, and modification services across multiple countries. The company utilized an intermediary brokerage service to secure contracts in a low-tax Arabic-speaking country, with commissions ranging from 5% to 10%. According to an anti-abuse rule, payments to entities in jurisdictions with notably favorable tax regimes are non-deductible unless proven to be legitimate transactions at arm’s length. Despite initial rejection by the tax authority, the Lisbon Administrative and Tax Court accepted the company’s claims, citing employee testimony and contract evidence as credible. The tax authority appealed to the Central Administrative Court, which upheld the deductions, considering the presented evidence sufficient to prove the transactions’ legitimacy and absence of exaggeration.