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   November/December 2016  
ITPJ Preview IBFD, Your Portal to
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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. 6 - 2016 of the International Transfer Pricing Journal is now available online.

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3rd IBFD Africa Tax Symposium
10-12 May 2017
Accra, Ghana
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Transfer Pricing Risk Management Implementation and Monitoring
10-11 April 2017
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Number 6 - 2016 contains the following:
European Commission Decision on Fiat: State Aid Case Explained
Marc Rasch and Pawel Wroblewski
The authors consider the decision of the European Commission regarding State aid allegedly arising to Fiat based on an APA granted by the Luxembourg tax authorities, and provide their views on the Commission’s decision.
The Artificial Avoidance of Permanent Establishment Status: A Reaction to the BEPS Action 7 Final Report
Arthur Pleijsier
The author provides a critical analysis of the issues likely to arise from the Action 7 Final Report under the OECD’s BEPS initiative. Suggestions are also offered that would relieve some of the potentially negative effects.
The OECD Master File: Past and Future

Roderick Veldhuizen and

Lazaros Teneketzis

This article provides an overview of the master file requirements that are introduced as part of the revised Chapter V of the OECD Transfer Pricing Guidelines. First, the new master file requirements are compared with the existing master file concept, followed by a discussion of potential issues related to the implementation of and/or conversion towards the new global master file.
Company Life Cycles in Database Analyses: An Approach for the Future?
Volker Trautmann
This article outlines an approach on how to enhance and simultaneously simplify economic analyses in a TNMM environment where commercial company databases are typically used to test the arm’s length nature of a group’s intercompany pricing. By using company life cycle stages derived from cash flow patterns as an additional quantitative screening criterion, this theoretically grounded approach is able to consider the typically unobservable OECD comparability criterion business strategies. In addition to offering better comparability and increased objectivity, this approach can contribute to a significant reduction of efforts linked to qualitative review steps and, therefore, compliance costs for the taxpayer.
Post-BEPS Application of the Arm’s Length Principle to Intangibles Structures
Marta Pankiv
The arm’s length principle, as embedded in article 9 of the OECD Model Convention, is not an anti-avoidance rule and has been misidentified as the primary tool to tackle certain abusive behaviours of multinational enterprises. This article refers to the new OECD guidelines on intangibles as background and provides an overview of the new approaches to transfer pricing analysis in the context of intellectual property; analyses the impact thereof on existing business models; and defines the limitations imposed by the arm’s length principle, as a general principle of international tax law, on making transactional adjustments and disregarding intellectual property arrangements by the tax authorities.
Interplay between Ratio Analysis Techniques and Transfer Pricing
Sunny Kishore Bilaney
Margin-based analysis under transfer pricing involves the use of various profit level indicators or ratios. Thus, understanding of ratio analysis techniques plays an important role in transfer pricing analysis. There are certain ratios which – although very useful – are not frequently used by transfer pricing practitioners, namely the Altman Z-score ratio, the Berry ratio, the operating profit to value added expenses ratio and so on. This article discusses usage and applicability of such uncommon ratios in transfer pricing analysis.
Transactions with Hard-to-Value Intangibles: Is BEPS Action 8 Based on the Arm’s Length Principle?
Oleh Fedusiv
Action 8 claims that the ex post approach is consistent with the arm’s length principle. Based on his analysis in this article, however, the author concludes that the ex post approach may deviate from the arm’s length principle and, consequently, lead to economic double taxation.
Capacity Building and Resources for Tax Administrations in Latin America

Mariela Méndez Prado and

Klelia Guerrero García

The analysis of capacity building and resources for tax administrations remains a recurring topic when discussing international tax. To contribute to this debate within the OECD Task Force of March 2016, this article presents some conclusions from the fourth regional meeting of Latin American tax administrations, including issues that affect their activities, both directly and indirectly, as well as joint proposals. These matters broadly fall under the headings of training, technology and institutions. The proposals are merely one part of a long process consisting of a series of international meetings to share and discuss the experiences of Latin American tax administrations, and the follow-ups by experts in both national and regional contexts.
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 BEPS in Latin and Central America.
Central America

Current State of Transfer Pricing Rules in Central America and Dominican Republic

Sophia Castro
The author reviews the current landscape of transfer pricing rules in Central America and the Dominican Republic, highlighting the key similarities and differences among the countries. The author also notes some trends observed in recent audits.
International/Latin America
Transfer Pricing Audits in Latin America
M. Teresa Quiñones
The author considers current transfer pricing audit trends in some Latin American countries. Topics are selected based on either their importance in the region or their novelty in the transfer pricing arena.
Update of Transfer Pricing Regime in Light of BEPS Actions 8-10 and 13
M. Teresa Quiñones
The author reviews legislative changes to Mexican transfer pricing rules in response to Actions 8-10 and 13 of the OECD’s BEPS initiative.
Licensing of Trademarks and the Use of Group Names: Recent Developments
Cornelia Andree, Sven-Eric Bärsch and Sven Kluge
The authors investigate the conditions under which a trademark identical to the group name must be licensed in accordance with the arm’s length principle from a German transfer pricing perspective. German case law and recent OECD developments are considered in this regard.
New Law Amends Transfer Pricing Documentation Rules and APA Procedure
Katerina Perrou
The Greek parliament has amended the Tax Procedure Code to bring the rules regarding transfer pricing documentation and APA procedures in line with international standards.
Marketing Intangibles: An Indian Perspective
Sunny Kishore Bilaney
The author discusses the approach of the Indian tax authorities to the contentious issue of marketing intangibles, and examines related rulings by various Indian courts in light of the guidance provided by the OECD/G20 in the BEPS final reports.
New Formal APA Programme
Joe Duffy and Tomás Bailey
Ireland has introduced a formal APA programme effective from 1 July 2016 which facilitates the initiation of bilateral APAs in accordance with BEPS best practice. Information on concluded APAs may be exchanged with other jurisdictions under either the OECD spontaneous exchange of information regime or the EU Directive on exchange of information.
Evaluation of the Innovation Box
Danny Oosterhoff and Bram de Nies
The innovation box has been beneficial for Dutch companies that invest in IP, but requires modification due to its status as a preferential regime following recommendations in Action 5 of the OECD BEPS project.
Effect of the OECD BEPS Initiative on Nigerian Transfer Pricing Regulations
Abdulateef Olatunji Abdulrazaq
The author considers the Nigerian transfer pricing regulations and how they will be impacted by the results of the OECD’s BEPS initiative.
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