On 7-9 November 2011, delegates from Working Party No. 6’s Special Session on the Transfer Pricing Aspects of Intangibles (“WP6-TPI”) met with private sector representatives to discuss definitional and ownership issues related to transfer pricing for intangibles. The agenda for the meeting, presentation material submitted by private sector participants and list of participants have now been published.
Presentations at the consultation focused on five topics: (i) the definition of intangibles for purposes of Chapter VI of the OECD Transfer Pricing Guidelines; (ii) the definition and treatment of goodwill for transfer pricing purposes; (iii) the definition of the term “brand” and the importance of brand in transfer pricing analyses; (iv) the appropriate approach for determining entitlement to intangible related returns for transfer pricing purposes; and (v)the importance of corporate synergies in a transfer pricing analysis.
Mr. Chris Lennon, the Chair of the BIAC Tax Committee, said that the overriding objective of the business community in connection with the project is to achieve certainty and to achieve a set of rules that will help eliminate double taxation. He pointed out that agreement on a set of consistently applied definitions was a key element in achieving those objectives. He urged the delegates not to reopen issues already clarified in the recently concluded project on business restructuring as reflected in Chapter IX of the 2010 version of the Transfer Pricing Guidelines. (more…)