IBFD Course Programme Transfer Pricing: Compliance and Audit Management in Southeast Asia

Transcription

1 IBFD Course Programme Transfer Pricing: Compliance and Audit Management in Southeast Asia

2 Summary This course will provide you with the best practices for implementing transfer pricing documentation requirements as part of your transfer pricing defence strategy. It will also bring you up to speed on what to look out for currently when the tax authorities audit companies in, as well as the latest OECD transfer pricing policy developments. Overview and Learning Objectives Many countries in (e.g. India, Indonesia, Vietnam, Malaysia and Thailand) have partially or fully implemented in their legislation the three-tiered standardized OECD approach to transfer pricing (TP) documentation or are planning to do so. With the efforts being made by various international organizations, legislators and tax authorities, it is now more important than ever for multinational corporations to have excellent TP documentation in place. Businesses need to relay current and accurate data that matches their business activities and operating model and that aligns with the tax profile presented to the authorities and the public. Penalties are due when the CbC report, Master File and Local File are not filed, not filed on time, or not filed correctly. Failure to comply may also trigger a TP audit and present a potential risk of TP adjustment. The goal is to minimize the risk of adjustments and penalties. In addition, the number of TP audits is growing. Given the increasing attention tax authorities around the world are paying to TP and the growing interest for international exchange of information, it may only be a matter of time before any multinational is subjected to a TP audit. Such audits may give rise to substantial risks and disputes, which makes proper preparation by multinationals crucial to managing these risks. Meanwhile, the OECD launched new projects on the transfer pricing of intra-group finance, as well as on the revision of TP practices concerning services and dispute prevention. These projects need to be closely monitored by the corporates. This three-day course is designed to provide you with in-depth knowledge of the current developments in transfer pricing as well as TP compliance and audit management. On the first day, you will look at the state of play, background and context of the recently launched OECD projects. On Day 2 and Day 3, you will learn, among other things, (i) the who, what, when and how of preparing and filing the CbC report, Master File and Local File; (ii) how to make sure the information in the reports is aligned; and (iii) how technology can help you with that. Furthermore, you will be taken through the various stages of an audit, the potential outcomes and the remedies that can be chosen for a particular challenge. In addition, you will become aware of the importance of the first contact with the tax authorities in an audit, and you will be given a checklist on how to deal with compliance and TP audits in an efficient and effective way, so that you will be prepared for a TP audit in the future. This course will give you the tools to successfully engage with the tax authorities, now that they are increasingly exchanging information and coordinating their audit activities. Field of Study Taxes Who Should Attend? The course is suitable for transfer pricing advisers, lawyers, accountants, in-house transfer pricing managers, controllers and finance staff. Course Level and Prerequisites This is an intermediate-level course. Participants taking this course will be expected to have a good understanding of transfer pricing principles. 2

3 Day Registration Welcome and IBFD Overview Transfer Pricing Post-BEPS Summary of BEPS Actions 8-10 application of the new, 2017 OECD TP Guidelines on Chapter I, risk analysis and comparability factors application of profit split methods effects of post-beps TP methodology on supply chain analyses the role of funding and capital examples and cases New OECD Discussion Draft on TP Aspects of Financial Transactions Related to BEPS TP and intra-group finance Treasury function intra-group loans cash pooling hedging Guarantees Captive insurance Practical examples New OECD Project To Revise the Guidance in Chapter VII of the OECD TPG, Special Considerations for Intra-Group Services TP and intra-group services Recent developments on transfer pricing at the level of the OECD and their relevance for services OECD BEPS and the 2017 OECD TPG low-value-adding services Introduction to the new OECD project on the revision of Chapter VII background and context comments from the business community received by the OECD The current challenges of MNEs surrounding transfer pricing of intra-group services, including: the identification of chargeable services the benefit test excluded activities The transfer pricing exercise The arm s length principle for services The direct and indirect charging methods Key TP challenges for MNEs Analytical approach to detecting, controlling and managing TP risks Break Refreshments New OECD Project to Revise the Guidance in Chapter VII of the OECD TPG, Special Considerations for Intra-Group Services (continued) 3

4 Day Setting the Scene: Compliance and TP Audits Public scrutiny Why TP audit has become prominent regional trends Flexibility of taxpayers and tax authorities Different and converging directions of governmental standard setters OECD developments OECD International Compliance Assurance Programme UN developments EU developments Extended audit/investigating rights of tax administrations Tax Inspectors Without Borders Case law Compliance in Master File and Local File introduction Master File Local File practical issues Country-by-country reporting who needs to file? what needs to be filed? which sources of data can be used? what happens if MNE does not file on time or complete report? Implementation of three-tiered approach by different countries in the region different thresholds exemptions format Challenges in: scoping data gathering data definitions reporting Case Study: Compliance Break Refreshments Case Study: Compliance (continued) 4

5 Day Experiences of Compliance Issues in TP Audits in Regional specifics Selection process audit Red flags for tax authorities in the various countries Penalties/responsibilities tax advisers, tax directors and board members Managing TP Audits in an Efficient Way Functions and features of TP audit plan Pre-audit managing TP risks actively documentation rulings/apas Actual audit period develop and apply audit strategy audit process management, e.g.: negotiations settlement Post-audit evaluating audit results Evaluating TP policy Implementation of TP adjustments Preparation process evidence of audit in records Case Study: TP Audit Assuming you did an excellent job on TP documentation, there are still some issues to be dealt with during a TP audit. This session will give you the tools to survive a TP audit. At the end of the session you will have a draft plan showing you the dos and don ts during a TP audit, how to prepare for an audit and how to train the organization for an audit Break Refreshments Case Study: TP Audit (continued) 5