March/April 2017  
ITPJ Preview IBFD, Your Portal to
Cross-Border Tax Expertise
International Transfer Pricing Journal
This free e-mail service informs you about the contents of the forthcoming edition of International Transfer Pricing Journal.

Issue No. 2 - 2017 of the International Transfer Pricing Journal is now available online.

Visit for more information about IBFD publications and services.

Archive | Subscribe to other Journal Previews


P.O. Box 20237
1000 HE Amsterdam
The Netherlands
Tel: 31-20-554 0176
Fax: 31-20-622 8658

Other publications and courses available on Transfer Pricing:

9th Latin American Regional Congress
31 May-2 June 2017
Buenos Aires
> Read more

Global VAT – Specific Countries
28-29 June 2017
> Read more
Number 2 - 2017 contains the following:
The Evolving World of Global Tax Planning: Part II
Matthew Herrington and Cym H. Lowell

The authors continue their analysis of the evolving world of global tax planning, with a particular focus here on means of resolving cross-border tax disputes.

Using the Capital Allocation Approach to Attribute Capital to a Permanent Establishment  
Tamara Schwärzler

The author considers the capital allocation approach, emphasizing that the attribution of capital is a pivotal step in the process of allocating profits to a permanent establishment. Attributing capital to a permanent establishment is not only a prerequisite for the full implementation of the authorized OECD approach, but could also have an influence on avoiding or minimizing double taxation or less than single taxation.

An Important Step Forward: Guernsey Introduces Country-by-Country Reporting

Joanna Huxtable

On 21 October 2016, Guernsey signed the OECD multilateral competent authority agreement for the automatic exchange of country-by-country reports. The author considers how such reporting is being implemented in Guernsey and the anticipated effects for taxpayers.

A Step towards Adopting an Approach in Line with BEPS Measures: India Revises Its Comments in the Draft UN Manual
Mansi Agrawal

The Indian tax authorities have updated their comments in the country-specific chapter in the 2016 Draft UN Transfer Pricing Manual, including with regard to marketing intangibles; location savings; intra-group services; financial transactions; the use of multiple year data; and the arm’s length range and its impact on Indian MNEs.

Impact of BEPS Project on Centralized Operating Models
Sunny Kishore Bilaney

The central operating models adopted by MNEs for marketing & distribution and for procurement of commodity products may be challenged by the tax authorities in light of BEPS Final Report. The author considers plausible transfer pricing challenges, and offers solutions that may mitigate transfer pricing risk for MNEs having central operating models.

Implementation of Transfer Pricing Rules in Light of the BEPS Project in Latin and Central America

At the initiative of Ms Sophia Castro, the International Transfer Pricing Journal presents a series of articles on the status of the implementation of transfer pricing rules and the impact of the OECD/G20 BEPS Project in Latin and Central America.

Chilean Transfer Pricing Regime and Implementation of BEPS Actions 8-10, 12 and 13 Recommendations
Paul Valdivieso and Marco Macías

Steps have been taken in Chile to implement the recommendations contained in the Final Reports on Actions 8-10, 12 and 13 as part of the OECD BEPS Project.

New Transfer Pricing Information Returns and Rules for Effecting Transfer Pricing Adjustments
M. Teresa Quiñones and Omar Camacho

Mexico’s implementation of requirements related to BEPS Action 13 appear to go beyond the OECD recommendations, giving rise to an environment of uncertainty for taxpayers and tax practitioners.

Transfer Pricing Changes in Response to the OECD BEPS Project
Luis Laguerre and Juan Moros

The authors review the current transfer pricing rules in Panama and analyse the impact that the BEPS Project has had there.

Administrative Court of Appeals Case on Netting Subsidies and Costs under Cost-Plus Method
Pierre-Jean Douvier and Mathieu Daudé

On 11 October 2016, the Administrative Court of Appeals of Versailles ruled in a case concerning the treatment of state subsidies when determining the cost base under the cost-plus method. The case is also significant as regards the burden of proof in transfer pricing disputes.

Making Transfer Pricing Adjustments Effective: Are the Tax Authorities Obliged to Reopen Fiscal Years for Which Corrective Tax Assessments Have Been Issued, After a Full Tax Audit?
Katerina Perrou

After a recent amendment to the Greek Tax Procedure Code (Law 4174/2013), the tax authorities now have the right and duty to reopen years for which the tax obligation has been finalized after a full tax audit has been conducted and a corrective tax assessment has been issued, only in cases where it obtains new information and only provided that the correction leads to the assessment of additional tax for the fiscal years in question. The author examines the effect of this provision on cross-border transfer pricing audits.

New Reporting Requirements for Companies with Related-Party Transactions Exceeding SGD 15 million

See Jee Chang and Lee Siew Ying

The tax authorities have announced that, with effect from year of assessment 2018, companies must complete a new Form for Reporting of Related Party Transactions for tax return purposes if the value of related-party transactions disclosed in the audited accounts for the financial year exceeds SGD 15 million.

South Africa
Recent Developments in Transfer Pricing Documentation Requirements

Louise Möller

The South African tax authorities have issued the formal Public Notice on transfer pricing documentation requirements. For many taxpayers, this will result in an increased compliance burden effective for years commencing on or after 1 October 2016.

Draft Decree on Transfer Pricing and Direct Tax Administration of Related-Party Transactions
Phat Tan Nguyen and Bich Ngoc Du

Vietnam’s Ministry of Finance released a Draft Decree on tax administration of enterprises with related-party transactions which covers transfer pricing rules and some other aspects of direct taxation. The authors analyse key aspects of the Draft Decree and discuss the appropriateness and possible impacts of the proposed changes on Vietnam-based business operations in light of the OECD BEPS Project, existing transfer pricing rules, practical enforcement and expected developments in Vietnam.