Transfer Pricing in a Post-BEPS World available in Hardcover
Transfer Pricing in a Post-BEPS World
- ISBN-10:
- 9041167102
- ISBN-13:
- 9789041167101
- Pub. Date:
- 08/25/2016
- Publisher:
- Wolters Kluwer
- ISBN-10:
- 9041167102
- ISBN-13:
- 9789041167101
- Pub. Date:
- 08/25/2016
- Publisher:
- Wolters Kluwer
Transfer Pricing in a Post-BEPS World
Hardcover
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$185.00Overview
The OECD’s Base Erosion and Profit Shifting (BEPS) project promises to make effective inroads into the much criticized corporate tax strategy known as aggressive transfer pricing, whereby the profitability of subsidiaries in different jurisdictions is “managed” via mispricing with the intent of minimizing the corporation’s overall tax burden. Although the OECD BEPS project is an ongoing endeavor, its accomplishments to date and developing trends are discernible. This book, including contributions by outstanding and renowned transfer pricing experts both from practice and academia, analyses these trends, and proposes reforms which would ensure that transfer pricing outcomes are better aligned with economic activities and value creation, which achieves a more equitable distribution of profits among different countries.
Each chapter is dedicated to specific sections of the OECD’s BEPS Action Plan. Among the topics and issues covered are the following:
- arm’s length principle and its ongoing development;
- allocation of risk and recharacterization;
- intangibles (both license model and cost contribution arrangements);
- interest deductions and intra-group financing;
- low value-adding services;
- commissionaire arrangements and low-risk distributors;
- attribution of profits to permanent establishments;
- documentation requirements (including Country-by-Country Reporting).
Within these topics, measures to identify the commercial and financial relationships inside multinational enterprises, to accurately delineate actual transactions, as well as guidance on defining risk and its allocation among entities of a multinational enterprise are discussed.
The book is based on papers presented and discussed at the first Global Transfer Pricing Conference hosted in February 2016 by the WU Transfer Pricing Center at the Institute for Austrian and International Tax Law at WU (Vienna University of Economics and Business).
The most up-to-date and thorough consideration of transfer pricing yet published, this book will prove invaluable for all parties currently facing questions related to transfer pricing in a post-BEPS world, especially those in charge of finding an ideal answer to them: academics, practitioners (including in-house and advisory counsel), international organizations, CEOs and CFOs of multinational enterprises, and government officials who are tax and transfer pricing experts.
Product Details
| ISBN-13: | 9789041167101 |
|---|---|
| Publisher: | Wolters Kluwer |
| Publication date: | 08/25/2016 |
| Series: | EUCOTAX Series on European Taxation |
| Pages: | 240 |
| Product dimensions: | 6.30(w) x 9.70(h) x 0.70(d) |
Table of Contents
Editors v
Contributors vii
Preface xvii
Chapter 1 The Arm's Length Principle: Between Legal Fiction and Economic Reality Raffaele Petruzzi 1
I Introduction 2
II The Historical Background 3
III The Origins of the Arm's Length Principle: The Legal Fiction 9
IV The Evolution of the Arm's Length Principle: The Economic Reality 12
V Conclusions and Proposals 27
Chapter 2 Risks Redefined in Transfer Pricing Post-BEPS Sébastien Gonnet 33
I Introduction 34
II The New OECD Risk Framework 36
III A Proposed Framework for Understanding Risks in an MNE 43
IV Case Study 50
V Conclusions 58
Chapter 3 Transfer Pricing Aspects of Intangibles: The License Model J. Scott Wilkie 61
I Introduction 62
II The Significance of Intangibles: The Arm's Length Standard 64
III The License Model 66
IV Transfer Pricing and BEPS 67
V 'Intangibles' 76
VI What Has the OECD Done, and What Are the Implications? A 'Definition' of 'Source' 83
VII Back to the License Model 86
VIII The Practical Reality 88
IX A Concluding Comment 94
Chapter 4 Transfer Pricing Aspects of Intangibles: The Cost Contribution Arrangement Model Yariv Brauner 97
I Introduction 98
II BEPS: The Promise 100
III Promises Undelivered 103
IV CCA 111
V Conclusion: Undelivered Promises 127
Chapter 5 Interest Deductions and Transfer Pricing Aspects of Intra-group Financing Antonio Russo 131
I The Report on Action 4 132
II The 'Best Practice Approach': Overview 133
III General Comments and Policy Considerations 136
IV The Fixed Ratio: Best Practice or Missed Opportunity? 139
V The 'Best Practice Approach': A Bridge to Article 7? 142
VI What Is in Store for the Future? 142
Chapter 6 Transfer Pricing Aspects of Low Value-Adding Services Guglielmo Maisto 145
I Definition of Low Value Services 146
II Services Which Are Excluded from Low Value Services 148
III List of Low Value Services 151
IV The Determination of Costs 153
V The 5% Markup 154
VI The Threshold of the Application of the Simplified Approach 155
VII Procedural Issues and Scope of the Simplified Approach 156
Chapter 7 Commissionaire Arrangements/Low-Risk Distributors and Attribution of Profits to Permanent Establishments Giammarco Cottani 159
I Introduction: The Development of Action 7 of the BEPS Project and Its Outcome 160
II Commissionaire Arrangements and Article 5(5) of the OECD MTC: Historical Background 162
III Commissionaire Structures in Light of the Action 7 BEPS Report: More Clarity or the Beginning of the End? 164
IV Attribution of Profits to PEs: Current Guidance and Future Developments 178
V (Tentative Conclusions): Should the Different Approaches Lead to the Same Outcome? 185
Chapter 8 Transfer Pricing and Documentation Requirements Christian Kaeser Sven Bremer 187
I Introduction 189
II International Developments 189
III Practical Experiences to Date 192
IV TPD According to BEPS Action 13 194
V Additional Challenges in Light of BEPS Action 13 196
VI Concerns about the Master File 197
VII Concerns with Regard to the Local File 200
VIII CbCR Requirements Raising Concerns 201
IX Increasing the Risk of Double Taxation 204
X Review and Outlook 206
Index 209