Transfer Pricing

Mind Map by , created over 5 years ago

Principles of International Tax Law (Transfer Pricing and Thin Cap rules) Mind Map on Transfer Pricing, created by floughnane on 05/07/2014.

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Created by floughnane over 5 years ago
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Transfer Pricing
1 State Practices
1.1 US: (i) extensive guidelines. (ii) Best method rule. (iii) CPM widely used
1.2 UK: (i) follows OECD (ii) BEPS leader
1.3 Germany: (i) OECD Generally (ii) best method based on comparability (iii) limitation on TNMM
1.4 Brazil: (i) Does not follow OECD (ii) safe harbour rates (iii) may use secret comparables
2 DTCs
2.1 Art. 7 Branch apportionment
2.2 Art 9 Adjustments
2.3 Art 25 MAP for TP disputes / or EU Arbitration convention
3 Thin Cap.
3.1 State Practices
3.1.1 KVR summaries
3.2 DTCs
4 Approaches
4.1 Global Formulary Apportionment
4.1.1 (1) measuring income of MNC as a whole (2) useful in Federal States (3) Problem of partial adoption (4) common tax bases and apportionment factors
4.2 Arm's Length Principle
4.2.1 (1) Objective (2) widely accepted (3) absence of comparables (4) States optionality and resulting conflicts (5) documentation burden
5 History


5.1 1933 Carrol Report LoN 1935 Draft Conv. 1995-2013 TP Guidelines 2008 Attribution to PEs
6 APA's
7 Importance of: Without it MNCs could (more) easily manipulate prices to erode tax bases from higher tax jurisdictions to low

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