Transfer Pricing in the Age of Transparency, Innovation, 17 th Annual Global Transfer Pricing Workshop July 28, 2017 Palace Hotel 2 New Montgomery Street San Francisco, California
About the Event The BEPS Project and the resulting comprehensive measures agreed upon and included in the BEPS Package are driving the transformation of transfer pricing. Companies find themselves in a position where they have to adapt to an environment defined by increased compliance obligations and enforcement activity. The discipline is likely to continue to evolve at a rapid rate especially taking into account the potential for U.S. tax reform, market factors that continue to shape global supply chains and business models, innovation and automation, and data analytics. This summer, in conjunction with our annual Transfer Pricing Subpractice training, Baker McKenzie s tax practice group is pleased to invite you and your colleagues to its annual Global Transfer Pricing Workshop. The all-day Workshop, to be held on Friday, July 28 in San Francisco, will address the ever changing tax landscape, its impact on current transfer pricing structures and the strategies companies can consider. Plenary sessions will focus on potential U.S. tax reform and its implications for transfer pricing, the rise of transfer pricing controversy globally and how the outcomes of Amazon and Medtronic could affect current controversies with the IRS. The workshop will conclude with an interactive session between Baker McKenzie practitioners from around the globe and corporate attendees to discuss the current challenges faced by multinationals and best practices to manage such challenges. Breakout sessions throughout the day will allow participants to customize their conference schedule on topics specific to IP and supply chain structures, permanent establishments, value chain analysis, valuation of intangibles, and more. We hope you will be able to join us. There is no fee to attend, but registration is required and will be accepted on a first come, first served basis. Friday, July 28, 2017 Palace Hotel 2 New Montgomery Street San Francisco, California
Agenda - Friday, July 28, 2017 8:30-9:00 Registration and Continental Breakfast 9:00-9:05 Opening Remarks 9:05-10:05 Tax Reform and Implications for Transfer Pricing The election of Donald Trump to the Presidency and Republican majorities in the House and Senate raised expectations for tax reform. That said, politics in Washington are anything but usual. With a focus on transfer pricing, panelists will discuss: (1) the current state of political affairs in Washington that are at work in shaping a potential tax reform package; (2) the proposed reforms that have been on the table, such as the border adjustment tax, interest deductibility, and a territorial system, and the substantive legal changes that are likely to result; and (3) how a final tax reform package may affect taxpayers and their approach to transfer pricing. Panelists will provide their input on the effects of these changes on planning, pricing, and documenting intercompany transactions. 10:05-10:15 Refreshment Break 10:15-11:05 Workshop Session I Option A: Restructuring Due to Changes in The Tax Landscape: IP Structures, Sales and Marketing Entities and Transfer Pricing Policy As the IRS, the OECD, and governments around the world take an ever greater interest in intangibles transactions and sales and marketing functions, taxpayers continue to face significant uncertainty regarding the long-term impacts of the BEPS initiative on their operational models. Many taxpayers are considering major and minor changes in light of the various BEPS action items and the unilateral measures by certain countries. In this session, we will discuss options for restructuring intangible property ownership structures, sales and marketing models, and key transfer pricing considerations. Option B: PE and Profit Attribution From Preventing Double Non-Taxation to Triggering Triple Taxation or More? The OECD s new standard for defining permanent establishments has created a risk that a company s profits could be taxed multiple times as many jurisdictions target the same income stream. This session will examine the circumstances under which PE will be triggered and how profits should be attributed to new forms of PEs under the most recent guidance. Option C: Transfer Pricing Framework for Tangibles and Services and Transfer Pricing Documentation Requirements: US and OECD Views Recent developments have elevated the importance of preparing robust transfer pricing analyses and documentation, which establish support for taxpayers positions. This session will discuss the transfer pricing framework for the evaluation and documentation of tangible goods and services transactions from a US and OECD perspective. This introductory level workshop will provide an informal atmosphere to motivate discussion within the group. 11:05-11:25 Refreshment Break 11:25-12:15 Workshop Session II Option A: Value Chain Analysis, Evaluation of DEMPE Roles, and Analytical Tools Case Study Discussion The OECD s final BEPS guidance on intangibles requires members of a multinational group to be compensated for functions performed in the development, enhancement, maintenance, protection and exploitation ( DEMPE ) of intangibles. In addition, the OECD included a discussion of Value Chain Analyses ( VCAs ) in its July 2016 discussion draft on profit splits. This session will look at topics of DEMPE, VCAs, and profit splits through case studies. The interaction of these concepts in the light of patent box regimes, centralized IP ownership structures, cost sharing, and matrix organizations will receive particular focus. Option B: Update on Recent Developments in Key Jurisdictions in EMEA and APAC Regions, and Impact on Global Tax Structures and Intercompany Transactions Global trends in politics and economics have given rise to new tax legislation and regulations across the globe that go well beyond BEPS guidance and recommendations. Further, enhanced coordination among tax authorities has impacted the manner in which tax authorities enforce their tax laws. These trends are likely to continue and raise questions regarding the continuing viability of a number of common structures and intercompany transaction flows. This session will highlight the most significant developments in the EMEA and APAC regions in the wake of BEPS. Panelists will consider the impacts of recent changes in key jurisdictions, the impact on common structures, and what the future may hold if existing trends continue.
Agenda - Friday, July 28, 2017 Option C: Transfer Pricing Framework for Intangibles: US and OECD Views Transfer pricing analyses, valuations, and documentation related to intangibles are facing intense scrutiny in the US and abroad. Tax authorities around the world are likely to look to the guidance under BEPS Action Items 8-10 and profit split discussion drafts, when evaluating pricing for intangible transactions, thus putting additional pressure on other methods. This session will discuss the transfer pricing framework for the valuation of intangibles and pricing for intangible transactions from a US and OECD perspective. This introductory level workshop will provide an informal atmosphere to motivate discussion within the group. 12:15-1:45 Lunch 1:45-2:35 Workshop Session III Option A: Planning While Managing Controversy Tax departments are often straddling the business s past, present, and future by simultaneously managing tax audits/controversies of prior periods, implementing current period transactions, and planning for future transactions. This discussion will focus on best practices for managing controversies with ongoing planning. Our panelists will discuss key issues being raised in audits, and potential impact on planning and defending transfer pricing, as well as procedural considerations around work product and privilege protections. Option B: Information Exchange, Multijurisdictional Audits, APAs, and the Multilateral Instrument While all audits present challenges, multijurisdictional audits are on the rise and have unique implications. Enhanced coordination among tax authorities, including the automatic exchange of APAs and other tax rulings in the EU, have impacted the manner in which tax authorities enforce their tax laws. In the wake of the OECD s recent release of the Multilateral Instrument and Explanatory Statement under BEPS Action Item 15, the tax treaty landscape is likely to change in material ways for many taxpayers. This session will discuss various developments related to APAs, exchange of information among countries, practical approaches to handling global audits, and key aspects of the Multilateral Instrument. Option C: Financial Valuations in the Context of Tax Planning and Transfer Pricing Financial valuations/appraisals are often performed for accounting or tax planning/restructuring purposes, such as purchase price allocation, impairment testing, valuation of stock options, valuation of shares, etc. This session will discuss: (1) commonly used valuation approaches and particular challenges, (2) intersection and sensitivities vis-à-vis tax planning and transfer pricing positions, and (3) efficient practices for managing financial valuation and transfer pricing analyses to achieve consistent defensible outcomes. 2:35-2:50 Refreshment Break 2:50-3:55 Transfer Pricing Controversy Update: The More Things Change, the More They Stay the Same Transfer pricing controversy in the United States is on the rise, and there are numerous high-profile cases receiving lots of attention, including the recent taxpayer victories in Amazon and Medtronic. Further, IRS practices during field audits have become more burdensome and invasive for taxpayers. This session will discuss those recent audit developments, recent cases, and what their outcomes may mean for companies engaged in current controversies with the IRS. 3:55-5:00 What Other Companies Are Doing: Let s Learn From Each Other Given the changes in tax and transfer pricing rules, many companies are reconsidering their approaches to transfer pricing. This interactive workshop will engage the audience regarding the hot topics and challenges faced by multinationals and what they are doing to address the risks and demands of the transfer pricing environment. 5:00 Cocktail Reception
Registration Attendee Name: Title: Company: Address: Phone Number: Email: Registration and additional Information: To register for the workshop, complete and return this form by email to taxnews@bakermckenzie.com or follow the link here to register online. For additional program information or to cancel your registration please send a note to the same email address provided above. There is no fee to attend, but registration is required and will be accepted on a first come, first served basis. This workshop is not open to other professional service providers. Overnight Accommodations: We have secured a discounted group rate on a limited number of guest rooms at the Palace Hotel. Rooms will be reserved on a first come, first served basis. Please contact Ashley Defay at 312 861 2647 or by email at ashley.defay@bakermckenzie.com for additional information. Breakout Selections: To help us plan our Workshop, please designate which breakout sessions you wish to attend 10:15-11:05 Workshop Session I A: Restructuring Due to Changes in the Tax Landscape: IP Structures, Sales and Marketing Entities, and Transfer Pricing Policy B: PE and Profit Attribution From Preventing Double Non-Taxation to Triggering Triple Taxation or More? C: TP Framework for Tangibles and Services and TP Documentation Requirements: US and OECD Views 11:25-12:15 Workshop Session II A: Value Chain Analysis, Evaluation of DEMPE Roles, and Analytical Tools Case Study Discussion B: Update on Recent Developments in Key Jurisdictions in EMEA and APAC Regions, and Impact on Global Tax Structures and Intercompany Transactions C: Transfer Pricing Framework for Intangibles: US and OECD Views 1:45-2:35 Workshop Session III A: Planning While Managing Controversy B: Information Exchange, Multijurisdictional Audits, APAs, and the Multilateral Instrument C: Financial Valuations in the Context of Tax Planning and Transfer Pricing Application has been made for minimum Continuing Legal & Professional Education Credit for this activity. Approved for 5.5 California, Illinois, Texas general CLE credits, and 6.50 New York areas of professional practice CLE credits. This program is appropriate for both experienced and newly admitted attorneys. Participants requesting CLE will receive Uniform CLE Certificates. Baker & McKenzie North America Tax Practice Group is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. This conference will be conducted as a Group Live panel discussion. Participants can earn up to 6.5 CPE credits in the Business Law field of study. This program is designed as an overview for tax practitioners of all levels, and advanced preparation and prerequisites are not required to attend. 2017 Baker & McKenzie. All rights reserved. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a partner means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an office means an office of any such law firm. This may qualify as Attorney Advertising requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.