OECD Meets with Business Commentators on the Valuation of Intangibles for Transfer Pricing Purposes

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. Continue Reading

INTERNATIONAL TRANSFER PRICING REVIEW

Konsilia, the Spanish and Qatari member Firm of The Leading Edge Alliance contributed to the publication of “Transfer Pricing, a comparative Analysis of 60 countries” published by REA, our associated Firm in Peru.

The report compares the regulatory treatment of transfer pricing in 60 countries and how they affect the allocation of gains in intra-group transactions between different tax jurisdictions in which a multinational operates, even for operations in tax havens or low, or no, tax.

Transfer prices are the prices at which an enterprise transfers physical goods, intellectual property or provides services to a related company. Essentially, it is the agreed price for transactions between two or more divisions that belong to the same group of companies.

The aim of the report was to create easily understandable and accessible research for a reader interested in transactions between related companies around the world, and not just for tax specialists seeking a tool in comparative law analysis.

The report can be downloaded here Transfer Pricing 2010, and you can direct any questions regarding the report to Fernando del Canto at Konsilia

 

From KYC to KY3.- The new anti bribery and corruption regulations in the US and the UK

Know Your Customer or KYC, predominated on the hyper regulated financial and legal profession in the 90s. Now that you Know Your Customers, it is time to start thinking in Knowing Your “Third Party” or KY3, and what are they doing for you.

As prosecution on acts of bribery and corruption is top in the agenda for the UK and the USA, a new compliance framework is being developed, specially for those trading in emerging markets, or in well established markets with sophisticated corruptions systems.

Bribery and corruption are rapidly establishing themselves as a permanent part of the financial crime portfolio as the UK and US begin to lock-step both legal practice and enforcement. Keith Korenchuk and Oliver Kerridge of Arnold & Porter LLP talk to MLB editor Timon Molloy about the transatlantic lessons and risks. Continue Reading

2010 OECD Model Tax Convention, Transfer Pricing and updated PE definition

From the OECD site 22 July 2010 — The OECD Council today approved the 2010 versions of the OECD’s Model Tax Convention, the 1995 Transfer Pricing Guidelines and the 2008 Report on the Attribution of Profits to Permanent Establishments. The updates are the result of several years of work to improve these core OECD instruments in the area of international taxation.

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