International Income Taxation Chapter 8: TRANSFER PRICING
|
|
- Eleanore Lynch
- 6 years ago
- Views:
Transcription
1 Presentation: International Income Taxation Chapter 8: TRANSFER PRICING Professors Wells March 28, 2018
2 Chapter 8 Transfer Pricing Code 482 Issues re establishing the arm s length price between related parties in the following situations: 1) Loans 2) Sales of tangible personal property 3) Leases of tangible personal property 4) Licensing of intangibles 5) Providing of services Purpose of these rules is to place a controlled taxpayer on tax parity with an uncontrolled taxpayer. In this analysis, it is assumed that all the facts are known and both related parties are knowledgeable in the industry. 2
3 Why Engage in Aggressive Transfer Pricing? 1) Tax to shift (a) income from the U.S. or (b) deductions into the United States. Worldwide Taxation US Parent 2) Customs duties to reduce inbound price for imports and, therefore, the amount of customs duties. 3) Corporate planning reduce amount of income of a particular subsidiary where employees or JV partners may participate in profits. Income Shifting Foreign Subsidiary Source Country Taxation Deferral Privilege 3
4 Code 482 Essentials Arm s Length Pricing 1) Commonly controlled entities. Worldwide Taxation 2) Apportionment of gross income, deductions, etc. between parties. 3) To prevent evasion of taxes or clearly to reflect the income... A tax accounting provision to facilitate the determination of the true taxable income of a taxpayer. US Parent Income Shifting Foreign Subsidiary Source Country Taxation Deferral Privilege 4
5 Challenge to the Pricing Adjustment by Taxpayer An accounting adjustment therefore ordinarily more deference to the Service s position on the adjustment. Taxpayer has the burden of proving that any IRS adjustment is arbitrary, capricious or unreasonable. Requirement for correlative allocations and deductions for related parties (if possible). Worldwide Taxation US Parent Income Shifting Foreign Subsidiary Deferral Privilege Source Country Taxation 5
6 Defining Control for Code 482 Purposes p. 715 No specific ownership attribution rules. What about a joint venture, particularly where parallelism of interest exists between the two joint venturers? Example: a joint purchasing arrangement for raw materials. X 50% 50% Y JV, Inc. Standard: Control means any kind of control, direct or indirect, whether legally enforceable, and however exercised. 1. Reality rather than formal control is the critical inquiry. A presumption of control exists if income is artificially shifted. 2. Control exists if two or more unrelated taxpayers act in concern for a common goal. 6
7 Secondary Consequences of Adjustment Under 482 Rev. Rul , p. 716 Triangular dividend treatment. Dividend P Contribution Excessive amount transferred is treated as: X Y 1) Dividend distribution ( 301) upstream to the common parent corporation; this assumes earnings and profits and Excess Value Variations on Rev. Rul ) Capital contribution downstream to the other entity (including foreign) P P Dividend X Y Contribution Dividend X Y I.L.M (Sept. 16, 2013) (can you guess the FTC issue???) 7
8 Impact of Foreign Law Restrictions p. 718 Proctor & Gamble: (1) P&G U.S. owned (2) AG Swiss which owned (3) Espana. Increase the royalty from Espana to AG? Spanish law applied a limitation on the permitted royalties. (Note: This limitation is not permitted under current EU law.) Held: For taxpayer & no income allocation to AG (which would have been Subpart F income). IRS Position: P&G (US) Subpart F inclusion (FPHCI- royalty) Royalty P&G A.G. (Swiss) P&G Espana (Spain) 8
9 Regs. Concerning Foreign Law Restrictions p.719 1) Must be publicly promulgated and generally applied. 2) Taxpayer must exhaust all available local country remedies in seeking a waiver of these rules. 3) The restrictions must prevent receipt. 4) Related parties must not have engaged in arrangements to circumvent the restrictions. 5) Taxpayers must elect to apply this regulation and identify affected transactions on its tax return. Reg (h)(2). 9
10 Mechanisms to Reduce Double Economic Taxation p ) Correlative adjustments if all entities are subject to U.S. income taxation. 2) Competent Authority mechanism to challenge the adjustment where cross-border situations. See 2006 U.S. Model Income Tax Treaty, Article 25. Example: What is the transfer pricing adjustment and correlative adjustments? P X $100x (overpriced by $5x) Y $100x Customer $100x Sales Price $ 60x COGS $ 40x Reported profit $100x Sales Price $100x Purchase Price $ 0x Reported profit 10
11 Concepts of Arm s Length Pricing Under Code 482 p. 722 Best method rule. Reg (c)(1). Since a range of economic results can occur parties must examine these factors to determine the comparability of uncontrolled transactions to that of the controlled transaction that is being tested: 1. Functions. 2. Contractual terms between the parties. 3. Economic risks. 4. Economic conditions. 5. The nature of the property or services. See Treas. Reg (d). 11
12 Interest on Debt Between Related Parties p. 724 Use a safe haven rate based on the applicable federal rate if not in the business of making loans. Range of not less than 100% of the AFR nor more than 130% of the AFR. See Treas. Reg (a)(2) (revised 2009). 12
13 Rental of Tangible Property p. 724 Establish an arm s length rental amount based on: 1) The period and the location of use. 2) The owner s investment in the property. 3) Expenses of maintaining the property. 4) The type of property involved. Reg (c). 13
14 Providing Services to a Related Party p. 724 Code 482 determine that amount which would be charged for similar services in independent transactions between unrelated parties under similar circumstances. Treas. Reg (b) & Treas. Reg
15 U.S. Steel Corp. Case p. 725 Services Situation Delaware mining company (activities in Venezuela) & Liberian shipping company (Navios). One planning objective was to limit Venezuelan taxes. US Steel (US) Objective to cause transportation costs to be increased to equalize costs for domestic and foreign ore when sold in the United States. 482 allocation partially approved. CASH Orinco (US) FOB (Venez) Navios (Liberia) Shipping Fees CASH Question: Which entity is entitled to the location savings? Unrelated Customer 15
16 UPS Case p. 732 Customer UPS (US) OPL (Bermuda) Excess Value Charges Insurance Policy Fireman s Insurance? National Union (Fronting Entity) Reinsurance Income from excess value charge deflected from U.S. to Bermuda (with intermediary National Union (independent) & reinsurance with OPL. Court of Appeals held arrangement not a sham transaction and remanded. But, subsequently, a 482 analysis. Section 482 issue: which is the tested party: UPS or OPL? 16
17 Specified Methods For Services Set forth in Treas. Reg p Services cost method, no mark-up (new). 2. Comparable uncontrolled services price method. 3. Gross services margin method. 4. Cost of service plus method. 5. Comparable profits method. 6. Profit split method. 7. Unspecified methods. Note: This is a Two- Sided TP Methodology where both parties are tested and residual profits gets shared between the parties. Note: These are One-Sided TP Methodologies where the tested party gets a routine profit determined under the specified method but importantly the residual profits goes to the untested party. 17
18 Supervisory / Stewardship Expense p. 734 Cf., the cost for management services provided for the benefit of the related/parent corporation. Young & Rubicam case p. 734 No 482 allocation required, since for the benefit of the parent corporation. Compare Treas. Reg (l)(3) with Treas. Reg (e)(4) 18
19 Rev. Rul p. 736 Compare in Same Market Foreign sub sells product to (i) Parent corporation and (ii) unrelated purchasers. P (US) A Market Customer 1) Sub can sell product to unrelated purchasers at a higher price because of market conditions in one jurisdiction as contrasted with another jurisdiction. Price? S X+Y X B Market Customer A Market Customer 2) Higher price to parent corporation than to unrelated purchasers in the same jurisdiction - not an arm s length price. 19
20 Bausch & Lomb Irish Mfg. Sub. p. 738 Irish sub was organized to manufacture and sell contact lenses. Product sold to Parent for $7.50 but the manufacturing cost was only $1.50. B&L (US) Sub also paid royalty to Parent of 5 percent to use the spin cast manufacturing process developed by the parent. B&L (Various) $7.50 $ % Royalty B&L (Ireland) $1.50 cost Held: OK to use Irish subsidiary and $7.50 was an acceptable market price. But, the court then looked at royalty rates and engaged in a profit split approach. CUPS Lombart American Hydron American Optical Hydrocurve 20
21 Current Pricing Rules for Tangible Personal Property p. 746 Best method rule (Reg (c) and -8) Reg choices: 1) Comparable uncontrolled price method; 2) Resale price method; 3) Cost plus method; 4) Comparable profits method (or CPM); based on profit level indicators; 5) Profit split method. Note: This is a Two-Sided TP Methodology where both parties are tested and residual profits gets shared between the parties. Note: These are One-Sided TP Methodologies where the tested party gets a routine profit determined under the specified method but importantly the residual profits goes to the untested party. 21
22 One-Sided Transfer Pricing Methodologies: Compaq Computer (p.749) R es Before TP: Cost + 5% Tested Party After TP: Cost + 5% i d u a l Compaq Parent Compaql Parent Inter-Company Computer Sales Residual Profits Compaq (Asia) PTE. LTD. (Singapore) TP: Residual
23 Speakerhouse Problem p. 749 Basic tax planning issue: What is the best pricing method when taxpayer wants the lowest possible price that can withstand examination by the IRS? 1) Comparable uncontrolled price ($150 if US Distributor sales are comparable) 2) Resale price method ($150 gives Swisterco a 25% GPM- the same GPM as on its RT3000 sales) 3) Cost Plus ($150 sales price less $120 cost gives 25% GPM to Speakerhouse- the same GPM as it earns on its S24 sales to US distributors) 4) Comparable profits (we don t have profitability information for Soundsgood) 5) Profit split (50:50 profit split gives $155 price, but split is unclear) Speakerhouse (US) $150 US Distributors $200 US Customers Price? Swisterco (Switzerland) $200 European Distributors RT3000 Net Profit $75 $10 Extra Cost for Packaging S24 & Advertising S24 23
24 Problem 2 p. 750 Comparability? USM sells gismos: (1) delivered to foreign subs and (2) FOB factory to unrelated parties. Same price. Applicability of comparable sales method? Do transportation and insurance costs have a reasonably ascertainable impact on price so as to enable appropriate adjustments? USM (US) FOB US FOB Europe Unrelated Foreign Distributors Related Foreign Distributors 24
25 Problem 3 p. 750 Impact of Trademark? USM sells gismos: Trademark on gismos sold to subsidiaries but not when sold to unrelated distributors. Is the effect on price of the trademark probably material and, therefore, not reasonably estimated? Therefore, the CUP method is probably not reliable here. USM (US) FOB US FOB US +TM Unrelated Foreign Distributors Related Foreign Distributors 25
26 Problem 4 p. 750 Different Area Markets USM sells gismos: Subsidiaries sold to European customers but unrelated distributors sold in Asia. If geographic differences have definitive and reasonably ascertainable effects for which adjustments can be made the CUP method may be acceptable. USM (US) FOB US FOB US Unrelated Asian Distributors Related European Distributors 26
27 Problem 5 p. 750 Foreign Sales Sub Compco (US) sells items - $70 each to Singapore sub to distribute item in Asia. $2 shipment cost (and net $68 to U.S. corp.). Sales to unrelated distributors for distribution elsewhere with terms of sale at $80 FOB factory. Net $68? Compco (US) Pacifico (Singapore) $80 FOB US US Distributors Is the effect to transfer income to the foreign subsidiary and therefore an adjustment should be made? 27
28 Problem 6 p. 750 Foreign Sub Pays Too Much? U.S. corp. sells items for $70 each to Singapore sub to distribute item in Asia. $2 shipment cost (and net $68). Net $68? Compco (US) $60 FOB US US Distributors Sales to unrelated distributors for distribution elsewhere with terms of sale at $60 FOB factory. Taxpayers cannot invoke 482 to make an adjustment. File an amended income tax return based on different prices? Pacifico (Singapore) 28
29 Problem 7 p. 683 Foreign Sub Adds Its Own Trademark to Products Comco affixes its valuable trademark on the products sold to Pacifico but none of its US distributor sales have a trademark. Issue: What is the result now? Price? Compco (US) Pacifico (Singapore) $80 FOB US US Distributors 29
30 Intangible Property Transfers p. 751 Definition: Patents, copyrights, trademarks, confidential know-how, trade secrets. Transfer accomplished either by sale or licensing. Licensing can be either co-extensive with the life of the property or for a shorter period. 30
31 Intangible Property Transfers Regulations p. 754 Best method rule for applicable methods: Comparable uncontrolled method (CUT) Comparable profits method Profit split method (comparable profit split and residual profit split) Unspecified methods. Further consider the super-royalty provision in Code 482 requiring periodic adjustments using the commensurate with income test. P
32 Cost Sharing Arrangements p. 755 Reg T Agreement to share costs and risks of research and development. Foreign-Owned MNE Nestlé TP: Residual Foreign-Owned Parent No royalties paid since each participant in the cost-sharing arrangement is an owner. Residual Profits CSA US Domestic Subsidiary Tested Party US-Owned MNE Apple TP: Cost + 5% Parent (US) Products Customers No Code 482 adjustments if the arrangement is a qualified cost sharing arrangement. TP: Cost + 5% CSA Owner/Developer (Ireland) TP: Residual 32
33 Administration of Transfer Pricing Issues p ) Report and Contemporaneous Documentation Requirements A & 6038C. 2) Penalty Provisions (e). Accuracy Related Penalty of 20% is increased to 40% if price adjustment exceeds $20 million or 20% of the taxpayer s gross income. A reasonable cause exception only exists if there were reasonable cause for the position plus documentation was developed establishing that the taxpayer reasonably used one of the methods as of the date that the tax return was filed. 6662(e)(3)(B). 33
34 APAs p. 760 Rev. Proc ( ) Factual items: 1) Measurements of the profitability and the return on the investment; 2) Functional analysis of the economic contributions of each party; 3) Industry pricing studies; 4) Competitors and financial data; 5) Criteria concerning comparables. Further: Identify critical assumptions? 34
35 Alternatives for Apportionment p ) Formulary approach State taxation apportion on the basis of three factors: (i) labor costs, (ii) asset values, and (iii) sales receipts. 2) Production sharing arrangements in the natural resource context. Each party is entitled to a quantity of the product produced. 35
36 Transfer Pricing Approach for Global Trading p. 762 Notice p. 693 Global trading of commodities and derivative financial products. Functionally fully integrated operations concerning centralized management of risk and personnel. Use profit split method to allocate income of related operations between taxing jurisdictions. 36
37 Arbitration of Intercompany Pricing Disputes p ) In the U.S. between the IRS and the taxpayer. Using baseball arbitration? Tax Court Rule ) Between the taxing authorities of several countries e.g. Germany, Netherlands, Canada & Belgium treaties, and other newer treaties. 37
MP&S DECOSIMO GLOBAL TRANSFER PRICING DOCUMENTATION, CONSULTING AND ARMS-LENGTH PRICE DETERMINATION
TRANSFER PRICING DOCUMENTATION, CONSULTING AND ARMS-LENGTH PRICE DETERMINATION Transforming global problems into global solutions Transfer pricing is a term used to describe all aspects of intercompany
More informationSeventh INTERNATONAL TAX PLANNING CONFERENCE-2001 OF BOMBAY MANAGEMENT ASSOCIATION. T.P.Ostwal Mumbai. 8th Dec 2001 T.P.
Seventh INTERNATONAL TAX PLANNING CONFERENCE-2001 OF BOMBAY MANAGEMENT ASSOCIATION By By T.P.Ostwal Mumbai fca@vsnl.com 8th Dec 2001 T.P.Ostwal 1 The process of fixation of Pricing of any Transaction between
More informationU.S. Transfer Pricing Overview. Presented by Will James BKD, LLP
U.S. Transfer Pricing Overview Presented by Will James BKD, LLP Agenda US. Transfer Pricing (TP) Rules Overview Overview of U.S. Documentation Requirements Required Documentation Penalties Tax Return Disclosure
More informationInternational Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES
Presentation: International Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES Professors Wells April 20, 2016 Chapter 12 Exploiting Intangibles Outside U.S. Choices for structuring these arrangements:
More informationTransfer Pricing. General Department of Taxation. Presented by: Mr.Traing Lay Mr. Chea Chantra. 18 January 2018
General Department of Taxation Transfer Pricing Presented by: Mr.Traing Lay Mr. Chea Chantra 18 January 2018 All rights reserved by General Department of Taxation 1 Content 1- Overview of Transfer Pricing
More informationInternational Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES
Presentation: International Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES Professors Wells April 16, 2018 Chapter 12 Exploiting Intangibles Outside U.S. Choices for structuring these arrangements:
More informationLB&I International Practice Service Process Unit Overview
LB&I International Practice Service Process Unit Overview Shelf Business Inbound Volume 6 Income Shifting UIL Code 9422 Part N/A N/A Level 2 UIL N/A Chapter N/A N/A Level 3 UIL N/A Sub-Chapter N/A N/A
More informationInternational Tax Primer Andrew D. Oppenheimer, Esq. October 31, 2017
International Tax Primer Andrew D. Oppenheimer, Esq. October 31, 2017 Agenda International tax concepts Taxation of foreign earnings Sourcing of income and expenses Foreign tax credits Subpart F income
More informationLB&I International Practice Service Transaction Unit
LB&I International Practice Service Transaction Unit Shelf Business Inbound Volume 6 Inbound Income Shifting UIL Code 9422 Part 6.7 Sales or Leases of Tangible Property/Goods Level 2 UIL 9422.07 Chapter
More informationInternal Revenue Service, Treasury
Internal Revenue Service, Treasury 1.482 3 be the basis for a separate allocation. However, if the employee continues to render services to the related entity by supervising the manufacturing operation
More informationInternational Income Taxation Chapter 11
Presentation: International Income Taxation Chapter 11 Professor Wells April 5, 2012 Chapter 11 Outbound International Sale of Goods p. 881 Choices for export sales entity arrangements: 1) U.S. sales office/export
More informationThis section contains major captions for through Allocation of income and deductions among taxpayers.
Transfer Pricing in International Investments Compiled by Lawrence Shoenthal, Consultant with Weiser Mazars LLP in NY 1 516-620-8733 Below is the U.S. Internal Revenue Regulation Section 1.482-0. This
More informationInternational Income Taxation Chapter 13: DIRECT INVESTMENT ABROAD
Presentation: International Income Taxation Chapter 13: DIRECT INVESTMENT ABROAD Professors Wells April 23, 2014 Chapter 13 Direct Investment Abroad p. 1073 Alternative foreign investment situations: Cf.,
More informationTransfer pricing of intangibles
32E30000 - Tax Planning of International Enterprises Transfer pricing of intangibles Aalto BIZ / May 2, 2016 Petteri Rapo Alder & Sound Mannerheimintie 16 A FI-00100 Helsinki firstname.lastname@aldersound.fi
More informationTransfer Pricing Essentials. Steven C. Wrappe KPMG LLP Washington, D.C.
Transfer Pricing Essentials Steven C. Wrappe KPMG LLP Washington, D.C. Notice The following information is not intended to be written advice concerning one or more Federal tax matters subject to the requirements
More informationInternational Tax Update
Managing Effective Tax Rate Through International Tax Planning William James, Principal Matthew Campbell, Senior Managing Consultant June 11, 2009 acumen insight ideas attention reach expertise depth agility
More informationInternational Tax and Transfer Pricing Update December 2, 2016
International Tax and Transfer Pricing Update December 2, 2016 Circular 230 Disclaimer Any written advice contained in or attached to this document/presentation is not intended or written by WTP Advisors
More informationChapter -1. An Introduction to Transfer Pricing
United Nations Geneva Meeting 16 th October 2012 Chapter -1 An Introduction to Transfer Pricing - Mr. T. P. Ostwal (India) October 2012 1 SYNOPSIS Section No. Title 1 What is Transfer Pricing? 2 Basic
More informationInteraction of OECD & US Standards under US Tax Treaties:
Interaction of OECD & US Standards under US Tax Treaties: Branch Profits Allocation & Intangible Property Transfer Pricing Issues for International Banks Andrew P. Solomon June 21, 2010 Outline of Today
More informationUnited States. Transfer Pricing Country Profile. Updated October The Arm s Length Principle
United States Transfer Pricing Country Profile Updated October 2017 SUMMARY REFERENCE The Arm s Length Principle 1 Does your domestic legislation or regulation make reference to the Arm s Length Principle?
More informationChapter 12 - Exploiting Intangibles Outside U.S.
Chapter 12 - Exploiting Intangibles Outside U.S. Choices for structuring these arrangements: 1) Independent licensing for royalties. 2) Transfer of intangible property rights in an independent capital
More informationTax Mgmt., Inc., Intl. J., 2001 January 11, Copyright 2002 Tax Management, Inc., a BNA Company Tax Management International Journal
Page 1 Copyright 2002 Tax Management, Inc., a BNA Company Tax Management International Journal 31 Tax Mgmt. Intl. J. 24 January 11, 2002 LENGTH: 11443 words SECTION: ARTICLES Subscriber Notice Please send
More informationUnited States. The US transfer pricing rules are embodied in. Michelle Johnson, Sheetal Kumar and Emily Sanborn Duff & Phelps LLC.
United States Michelle Johnson, Sheetal Kumar and Emily Sanborn Duff & Phelps LLC Issue One Is there official guidance for the treatment of intercompany services in your country (e.g., specific methodologies,
More informationJGARG. Economic Advisors. Tri Nagar Keshav Puram Study Circle Of North India Regional Council. By: CA. Gaurav Garg
JGARG Economic Advisors Tri Nagar Keshav Puram Study Circle Of North India Regional Council By: CA. Gaurav Garg Warm-up Indian TP Regulations Arm s Length Principle The Tax Treaty Aspect Meaning of Associated
More informationWELCOME TO OUR WEBINAR
WELCOME TO OUR WEBINAR International Franchise Structures Tuesday, September 15, 2015 1:00 p.m. EDT If you cannot hear us speaking, please make sure you have called into the teleconference number on your
More informationInternational Taxation Conference
International Taxation Conference Recent developments in Transfer Pricing Mumbai, 2 December 2005 Prof. Hubert Hamaekers 1 Contents 1. Developments in transfer pricing dispute resolution A. MAP B. Arbitration
More informationDomestic Fiscal System and International
Lorenzo Riccardi Vietnam Tax Guide Domestic Fiscal System and International Treaties ^ Springer Part I Vietnamese Tax System 1 Introduction to the Vietnamese Tax System 3 1.1 Legislative Background and
More informationB.4. Intra-Group Services
B.4. Intra-Group Services Introduction B.4.1. This chapter considers the transfer prices for intra-group services within an MNE group. Firstly, it considers the tests for determining whether chargeable
More informationTransfer Pricing: The New Frontier Transfer Pricing Documentation in a Post-BEPS World: Evolution or Revolution? November 8, 2018
Transfer Pricing: The New Frontier Transfer Pricing Documentation in a Post-BEPS World: Evolution or Revolution? November 8, 2018 Today s Speakers Astrid Pieron Partner, Brussels apieron@mayerbrown.com
More informationLB&I International Practice Service Transaction Unit
LB&I International Practice Service Transaction Unit Shelf Business Outbound Volume 1 Outbound Income Shifting UIL Code 9411 Part 1.5 Sales or Leases of Tangible Level 2 UIL 9411.05 Chapter 1.5.1 Outbound
More informationInternal Revenue Service, Treasury
Internal Revenue Service, Treasury 1.482 5 consistent with that status, its activities related to the development of the trademark are not considered to be a service performed for the benefit of FP, and
More informationOECD DISCUSSION DRAFT ON TRANSFER PRICING COMPARABILITY AND DEVELOPING COUNTRIES
Paris: 11 April 2014 OECD DISCUSSION DRAFT ON TRANSFER PRICING COMPARABILITY AND DEVELOPING COUNTRIES Submitted by email: TransferPricing@oecd.org Dear Joe, Please find below BIAC s comments on the OECD
More informationInternational Transfer Pricing Framework
Are you ready for transfer pricing? Seminar on November 28th, 2005 Swissotel, Istanbul International Framework Marc Diepstraten, Partner, PwC Amsterdam, +31 20 568 64 76 PwC Agenda Transfer pricing environment
More informationOECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations
OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2009 Edition B 366258 TABLE OF CONTENTS - 5 Table of Contents Preface 11 Glossary 17 Chapter I The Arm's Length Principle
More informationUSING INTERCOMPANY TRANSFER PRICE METHODS
Property Taxation Valuation USING INTERCOMPANY TRANSFER PRICE METHODS TO SEGREGATE TANGIBLE/INTANGIBLE ASSETS IN UNIT VALUATION PROPERTY TAX APPRAISALS Melvin R. Rodriguez and Robert F. Reilly 3 INTRODUCTION
More informationTable of Contents. Part I La Brienza Winery: Tax Trouble in Wine Country. Chapter 1 Introduction: The Vital Role of Tax in Global Management
Table of Contents Part I La Brienza Winery: Tax Trouble in Wine Country Chapter 1 Introduction: The Vital Role of Tax in Global Management La Brienza Winery, Present Day...3 The Two Objectives of International
More informationTRANSFER PRICING AND CbC REPORTING: A PRACTICAL GUIDE TO DOCUMENTATION FOR LARGE AND SMALL BUSINESSES. Jeremy Capes KPMG
TRANSFER PRICING AND CbC REPORTING: A PRACTICAL GUIDE TO DOCUMENTATION FOR LARGE AND SMALL BUSINESSES Jeremy Capes KPMG Agenda 1 BEPS: has the world begun to change? 2 What does Action 13 mean for Australia?
More informationWhat is Transfer Pricing and Why is it Important?
UN-ATAF Workshop on Transfer Pricing Administrative Aspects and Recent Developments Ezulwini, Swaziland 4-8 December 2017 LEARNING OBJECTIVES What is transfer pricing? INTRODUCTION TO TRANSFER PRICING
More informationUS TAXATION SYSTEM. Omri Yaniv International Tax Manager, PwC
US TAXATION SYSTEM Omri Yaniv International Tax Manager, PwC US Taxation System - List of Topic Basis of taxation Taxation of foreign corporations US domestic law US tax treaties Types of U.S. entities
More informationINLAND REVENUE BOARD
July 18, 2003 TEC/004/07/2003 INLAND REVENUE BOARD EXTENSION OF TIME FOR SUBMISSION OF BORANG C AND BORANG R TRANSFER PRICING GUIDELINES 1. Extension of Time for Filing Borang C and Borang R for Year of
More information14.01 TRANSFER PRICING IN MEXICO
Yoshio Uehara & Gustavo Méndez * 14.01 TRANSFER PRICING IN MEXICO Recent efforts of the Organization for Economic Cooperation and Development ( OECD ) 1 members in the tax area is to prevent that multinational
More informationTECHNICAL EXPLANATION OF THE SENATE COMMITTEE ON FINANCE CHAIRMAN S STAFF DISCUSSION DRAFT OF PROVISIONS TO REFORM INTERNATIONAL BUSINESS TAXATION
TECHNICAL EXPLANATION OF THE SENATE COMMITTEE ON FINANCE CHAIRMAN S STAFF DISCUSSION DRAFT OF PROVISIONS TO REFORM INTERNATIONAL BUSINESS TAXATION Prepared by the Staff of the JOINT COMMITTEE ON TAXATION
More informationTECHNICAL EXPLANATION OF THE INNOVATION PROMOTION ACT OF 2015
TECHNICAL EXPLANATION OF THE INNOVATION PROMOTION ACT OF 2015 July 28, 2015 CONTENTS Page A. Deduction for Innovation Box Profits... 1 B. Special Rules for Transfers of Intangible Property From Controlled
More informationTransfer Pricing Country Summary Venezuela
Page 1 of 6 Transfer Pricing Country Summary Venezuela July 2018 Page 2 of 6 Legislation Existence of Transfer Pricing Laws/Guidelines Transfer pricing legislation in Venezuela was introduced through a
More informationWORKING DRAFT. Chapter 4 - Transfer Pricing Methods (Traditional Methods) 1. Introduction
This is a working draft of a Chapter of the Practical Manual on Transfer Pricing for Developing Countries and should not at this stage be regarded as necessarily reflecting finalised views of the UN Committee
More informationTransfer Pricing Country Summary China
Page 1 of 8 Transfer Pricing Country Summary China March 2018 Page 2 of 8 Legislation Existence of Transfer Pricing Laws/Guidelines The transfer pricing legislation in China is mainly contained in the
More informationIssues Involving Comparability and Profit Based Methods in Transfer Pricing
G L O B A L T R A N S F E R P R I C I N G S E R V I C E S Issues Involving Comparability and Profit Based Methods in Transfer Pricing International Taxation Conference 2008 December 5, 2008 T A X Uday
More informationTransfer Pricing Report
Tax Management Transfer Pricing Report July 28, 2011 Reproduced with permission from Tax Management Transfer Pricing Report, Vol. 20 No. 7, 7/28/2011. Copyright 2011 by The Bureau of National Affairs,
More informationTransfer Pricing Country Summary Turkey
Page 1 of 8 Transfer Pricing Country Summary Turkey August 2018 Page 2 of 8 Legislation Existence of Transfer Pricing Laws/Guidelines Formal transfer pricing rules were introduced in Turkey on 21 June
More informationAll you ever wanted to know about the BEAT and other exciting but ignored provisions of the Tax Cuts and Jobs Act
All you ever wanted to know about the BEAT and other exciting but ignored provisions of the Tax Cuts and Jobs Act by Ian Shane, Esq. Prime Global 2019 Tax Conference January 6-9, 2019 BEAT BEAT imposes
More informationIRAS e-tax Guide. Transfer Pricing Guidelines (Fourth edition)
IRAS e-tax Guide Transfer Pricing Guidelines (Fourth edition) Published by Inland Revenue Authority of Singapore Published on 12 Jan 2017 First edition on 23 Feb 2006 Disclaimers: IRAS shall not be responsible
More informationU.S. Taxation of Foreign Corporations
University of Miami Law School Institutional Repository University of Miami Inter-American Law Review 10-1-1976 U.S. Taxation of Foreign Corporations Follow this and additional works at: http://repository.law.miami.edu/umialr
More informationInternational Income Taxation Chapter 10
Presentation: International Income Taxation Chapter 10 Professor Wells March 29, 2012 Overview of 367 Tax-free treatment under the Subchapter C rules 367(a): Governs transfer of appreciated property by
More information26 CFR Ch. I ( Edition)
1.482 6 (v) Applying the ratios of average operating profit to operating assets for the 1994 through 1996 taxable years derived from a group of similar uncontrolled comparables located in country M and
More informationThe New Services Regulations: Are We There Yet?
Tax Management Memorandum April 30, 2007, Vol. 48 No. 09 MEMORANDUM The New Services Regulations: Are We There Yet? Page 1 of 17 The New Services Regulations: Are We There Yet? by Steven C. Wrappe and
More informationThe transfer pricing rules apply for transactions between resident persons, as well as for transactions between resident persons and non-residents.
18. Bulgaria Introduction The Bulgarian tax legislation requires that taxpayers determine their taxable profits and income by applying the arm s-length principle to the prices for which they exchange goods,
More informationBasics of International Taxation 2015
TAX LAW AND ESTATE PLANNING SERIES Tax Law and Practice Course Handbook Series Number D-440 Basics of International Taxation 2015 Co-Chairs Linda E. Carlisle John L. Harrington To order this book, call
More informationLB&I International Practice Service Process Unit Overview
LB&I International Practice Service Process Unit Overview IPS Level Number Title UIL Code Number Shelf N/A Business Outbound Volume 1 Income Shifting (Business Outbound) Level 1 UIL 9411 Part 1.7 Other
More informationTransfer Pricing for Mid-Market Companies: New IRS Directives, Intercompany Agreements, Avoiding Risk and Penalties
FOR LIVE PROGRAM ONLY Transfer Pricing for Mid-Market Companies: New IRS Directives, Intercompany Agreements, Avoiding Risk and Penalties THURSDAY, MAY 31, 2018, 1:00-2:50 pm Eastern IMPORTANT INFORMATION
More informationInternational Transfer Pricing
www.pwc.com/internationaltp International Transfer Pricing 2013/14 An easy to use reference guide covering a range of transfer pricing issues in nearly 80 territories worldwide. www.pwc.com/tptogo Transfer
More informationU.S. Final Transfer Pricing Regulations
University of Miami Law School Institutional Repository University of Miami Law Review 4-1-1996 U.S. Final Transfer Pricing Regulations John S. Nolan Follow this and additional works at: http://repository.law.miami.edu/umlr
More informationChapter 2. Dispute Channels. 1. Overview of common dispute process
Chapter 2 Dispute Channels Suzan Arendsen * This chapter is based on information available up to 1 October 2010. 1. Overview of common dispute process Authorities worldwide increasingly consider transfer
More informationInternational Income Taxation Chapter 2: SOURCE RULES FOR INCOME AND DEDUCTION
Presentation: International Income Taxation Chapter 2: SOURCE RULES FOR INCOME AND DEDUCTION Professors Wells January 24, 2018 Whom do you see? An Old Lady or a Young Lady? Your Perspective Matters 2 Chapter
More informationTransfer Pricing Principles By Wilfred Alambo KPMG Advisory Services Limited
Transfer Pricing Principles By Wilfred Alambo KPMG Advisory Services Limited Introduction, African overview and TP methods Table of contents 1. Background & introduction 2. Overview TP in Africa 3. TP
More informationwww.bakertillyinternational.com Arm's Length Principle Transfer Pricing Methods From January 1997, as part of the tax reform, new transfer pricing rules based on the arm's length principle have been applicable,
More informationImportance of Intangibles. TP Problems Related to Intangibles. Intangible Issues in Developing Countries
UN-ATAF Workshop on Transfer Pricing Administrative Aspects and Recent Developments Ezulwini, Swaziland 4-8 December 2017 TRANSFER PRICING FOR CASES INVOLVING INTANGIBLES Wednesday, 6 December 2017 2.00pm
More informationTransfer Pricing Country Summary Turkey
Page 1 of 6 Transfer Pricing Country Summary Turkey 20 July 2015 Page 2 of 6 Legislation Existence of Transfer Pricing Laws/Guidelines Formal transfer pricing rules were introduced in Turkey on 21 June
More informationChinese Transfer Pricing Regulations and Their Implications
Chinese Transfer Pricing Regulations and Their Implications Pim Fris Special Consultant December 12, 2006 Shanghai Introduction Masterfile outline OECD documentation Typical OECD compliant transfer pricing
More informationROMANIA. minimum of 25% of the number/value of shares or voting rights in the two entities.
ROMANIA TRANSFER PRICING COUNTRY PROFILE 1. Reference to the Arm s Length Principle The arm's length principle was introduced in the domestic tax law in 1994 and is applicable to all related party transactions,
More informationFACULTY OF BUSINESS LAW. European and International Tax Law University of Lund
FACULTY OF BUSINESS LAW European and International Tax Law University of Lund Zhanna Gres zhanna.gres@gmail.com +46764091235 VALUATION OF INTANGIBLE PROPERTY FOR TRANSFER PRICING PURPOSES Master Thesis
More informationTransfer Pricing Methods and Selection of Most Appropriate Method. Vaishali Mane Partner Grant Thornton India LLP Mumbai
Transfer Pricing Methods and Selection of Most Appropriate Method Vaishali Mane Partner Grant Thornton India LLP Mumbai Agenda Transfer Pricing Quick background Arm's Length Principle Overview of Methods
More informationEligibility for Treaty Benefits Under The Switzerland-U.S. Income Tax Treaty
Volume 62, Number 6 May 9, 2011 Eligibility for Treaty Benefits Under The Switzerland-U.S. Income Tax Treaty by Jason Connery, Douglas Poms, and Jennifer Blasdel Reprinted from Tax tes Int l, May 9, 2011,
More informationPlanning for Intangible Property Migration in an Uncertain Environment. ABA Section of Taxation Mid Year Meeting January 25, 2013
Planning for Intangible Property Migration in an Uncertain Environment ABA Section of Taxation Mid Year Meeting January 25, 2013 1 Presenters Moderator Kenneth Christman, Ernst &Young Panelists Chris Bello,
More informationTransfer Pricing Implications for State & Local Tax
Transfer Pricing Implications for State & Local Tax G I A N LU CA P I T ET T I K P M G K E I T H R O B I NSON, P H D P WC I N S T I T U T E F O R P R O F E S S I O N A L S I N TA X AT I O N 2 0 1 6 I N
More information2009 International Taxation Conference TRANSFER PRICING: THE YEAR IN REVIEW. ITC Maratha Hotel, Mumbai, India December 3-5, 2009
2009 International Taxation Conference TRANSFER PRICING: THE YEAR IN REVIEW Elinore Richardson Borden Ladner Gervais LLP erichardson@blgcanada.com Al Meghji Osler Hoskin & Harcourt LLP ameghji@osler.com
More informationThe Impact of China's New Enterprise Income Tax Law on M&A Transactions and Advance Pricing Agreements
The Impact of China's New Enterprise Income Tax Law on M&A Transactions and Advance Pricing Agreements Julie Zhang Partner, Mayer Brown JSM +86 10 6599 9299 julie.zhang@mayerbrownjsm.com Ray Dybala Partner,
More informationTEI School - Houston. Intangible Property ( IP ) - Basics in IP Planning. May 3, 2017
TEI School - Houston Intangible Property ( IP ) - Basics in IP Planning May 3, 2017 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global
More information2017 Transfer Pricing Overview Slovakia
2017 Transfer Pricing Overview Slovakia slovakia@accace.com www.accace.com www.accace.sk Contents Introduction 3 Applicable legislation 4 Arm s length principle 5 Applicability 5 General terms 5 Documentation
More informationIntra-Group Services & Intangibles
Intra-Group Services & Intangibles Mbiki Kamanjiri @ 2016 Grant Thornton All rights reserved. What is covered under Intangible Property Definition: Property with no physical existence but whose value depends
More informationIntellectual property in the age of BEPS
Intellectual property in the age of BEPS Tax Executives Institute Michigan Chapter Detroit 28 October 2015 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms
More informationUNIVERSITY OF FLORIDA GRADUATE TAX PROGRAM
UNIVERSITY OF FLORIDA GRADUATE TAX PROGRAM International Transfer Pricing Professor David N. Spring Semester 2016 I. OVERVIEW This LL.M. course provides a practical, historical, and theoretical understanding
More informationOverview of Transfer Pricing Regulations. CA Akshay Kenkre
Overview of Transfer Pricing Regulations CA Akshay Kenkre 1 What is Transfer Pricing What is Transfer Price? A Price at which one person transfers physical goods, services, tangible or/ and intangibles
More informationTransfer Pricing in India Examining inter-company cross-border transactions
Transfer Pricing in India Examining inter-company cross-border transactions 1 Contents Background and history Meaning of International transaction Specified Domestic Transaction Arm s Length Price Associated
More informationTHE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness No. 20/2017/ND-CP Hanoi, February 24, 2017 DECREE
THE GOVERNMENT -------- THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness --------------- No. 20/2017/ND-CP Hanoi, February 24, 2017 DECREE PRESCRIBING TAX ADMINISTRATION FOR ENTERPRISES
More informationInternational Income Taxation Chapter 3: FOREIGN PERSON S US TRADE OR BUSINESS INCOME
Presentation: International Income Taxation Chapter 3: FOREIGN PERSON S US TRADE OR BUSINESS INCOME Professors Wells February 1, 2016 Chapter 3 Foreign Persons: U.S. Trade or Business Income Fundamental
More informationTransfer Pricing - Japan
Transfer Pricing - Japan 1. History (1) TP provision for international transactions enacted as Article 66-5 (now Article 66-4) of the Special Taxation Measures Law ( STML ) in 1986 (2) APA created by a
More informationSerbia Country Profile
Serbia Country Profile EU Tax Centre July 2015 Key tax factors for efficient cross-border business and investment involving Serbia EU Member State Double Tax Treaties With: Albania Austria Azerbaijan Belarus
More information26 CFR Ch. I ( Edition)
1.482 4 contract with Cancan, Amcan had received a bona fide offer from an independent Canadian waste disposal company, Cando, to serve as the Canadian distributor for toxicans and to purchase a similar
More informationTax Seminar: Transfer Pricing A Customs Perspective. Peter Caxton Kinuthia Director, Tax Services KPMG Kenya. 30 April 2015
Tax Seminar: Transfer Pricing A Customs Perspective Peter Caxton Kinuthia Director, Tax Services KPMG Kenya 30 April 2015 Presentation Outline Background TP and Customs Valuation Worldwide Developments
More informationPlanning with the New FTC Baskets
Planning with the New FTC Baskets 2018 U.S. Cross-Border Tax Conference May 15 17, 2018 kpmg.com Agenda 01 Significant Tax Reform changes to FTC rules - New FTC baskets and FTC limitation - Deemed paid
More informationTRAINING ON TRANSFER PRICING. Income Tax Workshop DATE: 12th 13th April 2018 VENUE: Grand Regency Hotel Nairobi
TRAINING ON TRANSFER PRICING Income Tax Workshop DATE: 12th 13th April 2018 VENUE: Grand Regency Hotel Nairobi 1 www.kra.go.ke 18/04/2018 INTRODUCTION TO TRANSFER PRICING What is Transfer Pricing? Prices
More informationCross-border Outsourcing
1 st Subject IFA Mumbai October 2014 Cross-border Outsourcing Issues, Strategies & Solutions Natalie Reypens, partner Loyens & Loeff IFA Belgium 15 October 2013 Content 1. Introduction 2. Domestic law
More informationto: Supervisory Appeals Officer Technical Services, Technical Guidance, Technical Guidance Team 3 Office of Appeals
Office of Chief Counsel Internal Revenue Service Memorandum Release Number: AM-2007-007 Release Date: 3/23/07 CC:INTL:B06:TAVidano POSTN-123864-06 UILC: 482.11-00, 482.11-05, 482.11-08, 482.11-10 date:
More informationU.S. Intl. Tax Law - 4 U.S. Passive Income. Foreign Persons: Nonbusiness U.S. Source Income. Why impose tax on a gross basis?
U.S. Intl. Tax Law - 4 U.S. Passive Income Investment income taxed - 871(a), 881(a) Gross withholding at source is applicable. Exemption from income tax liability for:portfolio interest; bank interest;
More informationOverview of Transfer Pricing
Overview of Transfer Pricing Contents Legislative framework Transfer pricing study Assessment and Litigation Key Recent Developments Page 2 Transfer Pricing in India- Background April 1, 2001 onwards Comprehensive
More informationResolving transfer pricing controversies, handling audits and queries, and best practices in TP documentation: A practical guide
Resolving transfer pricing controversies, handling audits and queries, and best practices in TP documentation: A practical guide Douglas Fone Global Partner, Transfer Pricing Associates 1 Content 1. Introduction
More informationFDU: U.S. International Corporate Tax
190 Controlled Foreign Corporations 191 CFCs: Introduction Subpart F designed to prevent deferral of portable income Applies to US Shareholders of Controlled Foreign Corporations earning Subpart F income
More informationSilicon Valley Chapter
Silicon Valley Chapter Subpart F: Sales Income Review and Planning Strategies March 23, 2017 Biltmore Hotel & Suites, Santa Clara Lowell D. Yoder lyoder@mwe.com Subpart F Sales Income CFC purchases property
More informationHONG KONG. 1. Introduction. Contact Information Henry Fung Candice Ng
HONG KONG Contact Information Henry Fung +852 2969 4054 hernyfung@pkf-hk.com Candice Ng +852 2969 4016 candiceng@pkf-hk.com 1. Introduction 1.1. Legal context Currently, the Hong Kong Inland Revenue Ordinance
More informationDOMESTIC TRANSFER PRICING CONFERENCE
DOMESTIC TRANSFER PRICING CONFERENCE Importance of FAR & Comparability; Selection of the Most Appropriate Method and Issues in disclosure in new Form 3CEB from SDT perspective 19 October 2013 Pramod Joshi
More information