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Poll

Which member of the BRICS has the most developed TP regime?

Brazil
1%
Russia
19%
India
21%
China
20%
South Africa
39%


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Content

Why Taiwan’s transfer pricing proposals are too vague for taxpayers

Taiwan’s Ministry of Finance (MOF) has announced proposals to amend transfer prising assessment rules. The proposals suggest greater alignment with the OECD but the announcement has left many important questions unanswered. March 31, 2015

UK diverted profits tax a growing concern for taxpayers

HM Revenue and Customs (HMRC) has responded to criticism from tax professionals over the diverted profits tax (DPT) by narrowing notification requirements. While this is welcome news for taxpayers, DPT will still have a far-reaching impact which many feel could undermine the OECD’s base erosion and profit shifting (BEPS) project. March 30, 2015


New German regulations on allocation of profits to permanent establishments

The Upper House of the German Parliament (Bundesrat) approved the regulations on the application of the arm’s-length principle to permanent establishments (PE regulations), which follow the authorised OECD approach (AOA). March 27, 2015

OECD paper on risk and re-characterisation could threaten arm’s-length principle says industry

Industry representatives are concerned about the continued viability of the arm’s-length principle in light of the OECD’s paper on risk and re-characterisation, released as part of the base erosion and profit shifting (BEPS) project. March 27, 2015


China’s SAT issues regulations on outbound service payments as part of crackdown on tax evasion

China’s State Administration of Taxation (SAT) recently issued a notice regarding payments involving related offshore parties. China has openly declared its plans to crackdown on tax evasion, so the issuing of new regulations come as no surprise. March 26, 2015

Taxpayers welcome Delhi High Court’s decision to strike out bright-line test for AMP expenses

The Delhi High Court issued a significant ruling concerning the taxation of advertising, sales, and marketing promotions (AMP) expenses. March 25, 2015


Rio Tinto fears OECD’s BEPS project will discriminate against multinationals and harm investment environment

Rio Tinto’s “taxes paid” report for 2014 revealed the company paid $ 7.1 billion worth of taxes and royalties globally. The report also voiced Rio Tinto’s concerns over the OECD’s base erosion and profit shifting (BEPS) project and the potential for discrimination against multinationals. March 24, 2015

Italian Supreme Court rules TP irregularities must be substantiated with clear avoidance behaviour

In Ruling No. 27296, Italy’s Supreme Court rejected the tax authorities’ appeal against an Italian company’s transfer of goods and services to its German parent. The Supreme Court ruled that if there is no clear economic advantage for a company, simply proving a transaction is not at arm’s-length is insufficient grounds for an adjustment. March 19, 2015


EC reveals tax transparency measures and promotes automatic exchange of information as answer to tackling evasion

On March 18, the European Commission (EC) released its Tax Transparency Package which it hopes will serve as a tool for “healthier” tax competition and help member states recognise illicit tax practices. March 19, 2015

SKAT’s aggressive approach to transfer pricing leaves taxpayers fearing an anti-business agenda in Denmark

Danish tax authority, SKAT, collected DKK 20 billion ($2.9 billion) in tax adjustments in 2014 by challenging 76 companies’ transfer pricing arrangements. The agency’s aggressive tax policy has been widely criticised by business with suggestions that government has an anti-business agenda. March 18, 2015


Release of APA roll-back provisions in India welcome news for taxpayers

India’s long-awaited advance pricing agreement (APA) roll-back provisions have been released. This will come as welcome news to taxpayers who criticised the government’s 2015 Budget for overlooking important transfer pricing issues. March 17, 2015

Tax demand against Cairn contradicts India’s 2015 Budget aim to create investor-friendly environment

The Income-Tax Department (I-T Department) has issued Cairn Energy (Cairn) with a Rs. 10,247 ($1.6 billion) tax demand over its transfer of assets to Cairn India. The tax demand draws similarities with Vodafone and suggests India still has work to do in proving itself as an investor-friendly nation. March 17, 2015


Disparity between the US and Brazil’s approach to royalties increases risk of double taxation

As a result of Brazil’s unique policy to prevent erosion of the tax base, companies often face double taxation. March 13, 2015

Italy’s patent box regime should escape criticism because of alignment with OECD nexus approach

Italy has introduced a patent box regime based on the OECD’s nexus approach, which will grant exemptions for profits derived from certain intangible assets for corporate and regional tax purposes. Italy’s alignment with the OECD should keep the usual patent box-related criticism at bay. March 12, 2015


HMRC’s 2013-14 transfer pricing statistics show increase in time taken to resolve TP cases

HM Revenue & Customs (HMRC) recently released its transfer pricing statistics for 2013-14. While HMRC collected almost twice as much in additional taxes compared with 2012-13, the time taken to resolve advance pricing agreements (APAs) and mutual agreement procedures (MAPs) has increased. March 11, 2015

How India is striving to attract your company's investment through transfer pricing measures

Following on from the Indian budget last month and various significant developments on the disputes scene, TPWeek thinks it is a good time to put together a Special Focus, bringing together its most recent reports. March 10, 2015


Australian opposition leader’s thin capitalisation proposals met with strong criticism

Australia’s opposition Labor party has received strong criticism from business leaders and advisers over its plans to increase the tax burden on corporations by changing the thin capitalisation threshold. March 10, 2015

Total delivers on plans to promote tax transparency by publishing full list of subsidiaries

French oil company Total has delivered on its promise to publish a full list of its subsidiaries. The move shows Total is making significant efforts to promote transparency, but the list is just a drop in the ocean in comparison with the documentation the OECD and NGOs hope to acquire. March 09, 2015


Indian finance minister keeps transfer pricing at “arm’s-length” in 2015-16 budget speech

Taxpayers think the 2015 Indian budget, announced on Saturday, did not focus strongly enough on transfer pricing and have described it as “disappointing”. March 04, 2015

Microsoft IRS transfer pricing case dismissed

Microsoft and the Internal Revenue Service (IRS) have agreed to end their battle over documents used in transfer pricing audits of the tech company. March 04, 2015


Indonesia wages war on corporate tax avoidance through transfer pricing

The director-general of taxes in Indonesia has confirmed government plans to clampdown on corporate tax avoidance facilitated by transfer pricing. March 03, 2015

Timing of Canada Revenue Agency’s TPM-16 on multiple year data “odd” in light of pending OECD recommendations

The Canada Revenue Agency (CRA) has released transfer pricing memorandum 16 (TPM-16), which formalises guidance on multiple year data. While the guidance is far from ground-breaking, the timing of its release appears odd because the OECD’s final recommendations have yet to be published March 03, 2015


How HMRC is tackling tax arrangements similar to Starbucks’

The Public Accounts Committee (PAC) met last month to ask HM Revenue & Customs (HMRC) about its efforts to curb tax avoidance, including how HMRC has developed its transfer pricing approach to counteract tax arrangements such as those by Google, Amazon and Starbucks. March 03, 2015

Canada Revenue Agency ignores the OECD’s simplified proposals for intra-group services in TPM-15

The Canada Revenue Agency (CRA) has released transfer pricing memorandum TPM-15 on intra-group services which overlooks the OECD’s proposals for a more simplified approach. February 26, 2015


Transfer pricing steals the show in South African finance minister’s 2015-2016 budget speech

South African finance minister, Nhlanhla Nene, has stressed the importance of regulating transfer pricing to tackle profit shifting in the country in his 2015/2016 budget speech. February 26, 2015


Why alleviation of double taxation is not keeping pace with BEPS work

Taxpayers are becoming concerned the OECD’s aim to alleviate double taxation is being out-paced by the BEPS work. Isabel Verlinden, Patrick Boone, Gaby Bes, and David Swenson of PwC explain why this concern is justified. November 26, 2014

Consensus over definition of intangibles and location savings increasingly unlikely

Action 8 of the OECD’s BEPS project on the transfer pricing aspects of intangibles aims to achieve universal consensus over definition. However, this is beginning to look like an impossible task, with influential BRIC countries such as India, making their own interpretations. December 10, 2014

Asia transfer pricing special focus

Transfer pricing in Asia is a rapidly developing market for taxpayers, their advisers and the authorities. TPWeek held its third annual Global Transfer Pricing Forum in Singapore on December 2&3 with a record turn-out from delegates and featuring two keynote speeches from OECD officials. December 17, 2014

China’s APA stats show acceptance of different TP methods

China’s State Administration for Taxation (SAT) released its advance pricing agreement (APA) statistics for 2013 on December 5 2014. January 12, 2015

Taxpayers criticise Chinese regulations

China’s transfer pricing regulations, which were published on January 9, will affect how companies manage their tax affairs and add to their compliance costs, say tax directors February 11, 2020


Singapore updates its transfer pricing guidelines

The Singapore revised transfer pricing (TP) guidelines, published January 6 2015, require taxpayers to prepare and maintain contemporaneous TP documentation to support TP positions and have this in place by the time the company’s tax return is filed. January 19, 2015

New TP reforms in Ukraine likely to ramp up disputes and prolong audits

The Ukrainian Parliament has passed new transfer pricing provisions which will flesh out documentation requirements and extend audit periods. The legislation highlights the government’s desire to tighten transfer pricing control. January 14, 2015

China focuses on cross-border transactions in war on tax evasion

The Chinese State Administration of Taxation (SAT) has announced that general anti-avoidance rule (GAAR) measures will take effect from February 1 2015. The move signals a crackdown on profit shifting, which could see cross-border transactions increasingly scrutinised. January 12, 2015

Lack of transfer pricing rules leads to questionable audits in Hong Kong

Despite a self-touted reputation as a leading global financial centre, Hong Kong’s Inland Revenue Department (IRD) has been criticised by tax practitioners for overly aggressive audits on asset managers. Hong Kong has limited transfer pricing legislation and often seeks to enforce arm’s-length pricing through practice notes and a network of tax treaties. January 08, 2015

The transfer pricing implications of the Italian regional tax on productive activities

The provincial tax court of Reggio Emilia has issued ruling No 510/03/14 relating to the Italian regional tax on productive activities (IRAP). January 06, 2015

Reduction in maximum income tax rate for inclusion in Brazil’s black and grey lists

The Brazilian Ministry of Finance has issued Portaria MF no. 488/2014, on December 1, which reduced the maximum income tax rate from 20% to 17% for the purposes of applying the concepts of tax havens and privileged tax regimes. December 08, 2014

Swedish Tax Agency reviews TP legislation and proposes changes

The Swedish Tax Agency has, on request by the Swedish Government (Ministry of Finance), evaluated the transfer pricing documentation rules’ functionality and proposed possible changes to simplify the application. December 08, 2014


The dangers of creating an accidental PE and how to avoid it

As companies’ employees become more globally mobile, there is an increasing risk that a permanent establishment (PE) may occur unintentionally, leaving taxpayers at risk of taxable income liabilities. November 28, 2014

Determining the transfer pricing policy for liquefied natural gas

Tamir Druz, a director at Capra Energy Group, discusses the best methods for determining an optimal transfer pricing policy for liquefied natural gas (LNG). September 01, 2014

Hong Kong signs first bilateral APA

Hong Kong has agreed its first bilateral advance pricing agreement (APA) since its scheme began in March 2012. EY, who facilitated the deal between Hong Kong and the Netherlands, explain how the process progressed with the authorities. July 10, 2014

Marzen Aluminum ruling based on structuring rather than pricing

The Tax Court of Canada has ruled that, while Marzen Artistic Aluminum provided sales and marketing staff to Starline International (SII) at an arm’s-length price, the documentation presented was insufficient. The ruling is significant because it is the first Canadian decision focusing on the structuring of transactions rather than the pricing. June 26, 2014

Netherlands reclaims Swiss company’s profits and applies penalties in transfer pricing case

The Dutch District Court of Zeeland/West-Brabant ruled, on January 17 2014, on a Swiss Captive Insurance company (without employees), taxing most of its profits back in the hands of a related Dutch taxpayer with 50% penalties. March 18, 2014

Intangible assets in the media and entertainment industries: In depth analysis

The US television production industry reported total revenue of $35.6 billion and a profit of $6.1 billion, or 17% of revenue in 2012. Mark Nehoray, Kristine Riisberg, and Anna Soubbotina take an industry focused look at dealing with intangibles. February 18, 2014

The transfer pricing considerations of Suzuki’s 100% subsidiary in India

Car manufacturer, Suzuki, has decided to set up a 100% subsidiary in Gujarat, India, in addition to its majority-owned listed-entity, Maruti Suzuki. Wider business decisions aside, there are transfer pricing implications, which must be considered by any multinational in this position. February 04, 2014

McKesson Canada: CRA wins in Tax Court but taxpayer files with Court of Appeal

The Canada Revenue Agency (CRA) saw pharmaceutical company McKesson’s arguments dismissed by the Tax Court in December 2013 but the company has now filed its arguments with the Federal Court of Appeal. January 24, 2014

How to organise your TP department to avoid dispute

Governments' hard-line approaches to companies' transfer pricing arrangements has resulted in a rise in transfer pricing cases being resolved in court, explains Fabrizio Lolliri, European director of transfer pricing for Hogan Lovells. January 21, 2014

The new cost of global compliance: Private company data for local comparables

All of us in the tax world know that transfer pricing has been a hot topic this year. Around the globe, tax authorities have become more aggressive, primarily to reduce government fiscal deficits. January 20, 2014


Ireland transfer pricing documentation guide

By Barbara Dooley and Gavan Ryle of PwC, Dublin. June 23, 2011

UN tax committee publishes draft transfer pricing manual

The UN Committee of Experts on International Cooperation in Tax Matters will consider its draft Transfer Pricing Manual for Developing Countries at its eighth session in Geneva from October 15-19. October 03, 2012

Ecuador transfer pricing documentation guide

Alexis Carrera, of Ernst & Young in Quito, reports on the distinctive documentation rules in Ecuador March 23, 2011

Norway transfer pricing documentation guide

Hans-Martin Jørgensen and Michael Vorndran of Deloitte August 09, 2012

Austria transfer pricing documentation guide

By Andrea Lahodny and Gabriele Holzinger of Deloitte August 08, 2012

Canada transfer pricing documentation guide

Todd Miller and Michael Friedman of McMillan in Toronto, Canada explain the documentation rules in Canada and how recent treaty developments and court decision will affect taxpayers. April 20, 2010

Greece transfer pricing documentation guide

By Stefanos Mitsios of Ernst & Young August 08, 2012

Indonesian transfer pricing documentation guide

By Permana Adi Saputra of PB Taxand August 08, 2012

Malaysia transfer pricing documentation guide

By Bernice Tan of Taxand Malaysia August 08, 2012

Denmark transfer pricing documentation guide

Tim Holmes and Thomas Bjerre of Ernst & Young Copenhagen outline the approach to the transfer pricing documentation requirements in Denmark. August 03, 2012

Egypt – Transfer Pricing Documentation Requirements

Anthony Mahon and Andy El Zayaty of Deloitte provide a guide to the transfer pricing requirements in Egypt. December 15, 2010

US transfer pricing documentation guide

By Kathrine Kimball and Minjung Kim of Charles River Associates July 26, 2012

UK transfer pricing documentation guide

By Graham Head (Senior Manager) and Liz Hughes (Transfer Pricing Director), Grant Thornton UK July 24, 2012

South Korea transfer pricing documentation guide

By Taehyung Kim of Deloitte July 23, 2012


HMRC is exchanging unilateral APA information with treaty partners

HMRC is exchanging the terms of its unilateral advance pricing agreements (APA) with UK tax treaty partners. The measure is part of the revenue’s drive towards greater transparency and began this month. February 26, 2013


How to survive a transfer pricing audit in India

Hardev Singh and Saurabh Dhanuka, of KPMG, TP Week’s correspondent in India, give practical advice on dealing with India’s revenue authorities May 22, 2008

How to survive a transfer pricing audit in Malta

Mirko Rapa, of PricewaterhouseCoopers in Valetta, explains the environment for transfer pricing audits in Malta April 15, 2008

How to survive a transfer pricing audit in the Czech Republic

Jiri Teichmann and Libor Fryzek of Ernst & Young in Prague provide insight into the transfer pricing audit process April 07, 2008

How to survive a transfer pricing audit in China

Glenn DeSouza and Qian Min looks at the impact of April 2008 guidelines on the conduct of transfer pricing audit April 06, 2008

How to survive a transfer pricing audit in Poland

Mike Ahern and Piotr Wiewiorka, of PricewaterhouseCoopers in Warsaw, outlines the approach to transfer pricing audits in Poland March 14, 2008