The notions of ownership, substance and commercial rationality are identified as controlling criteria for complia ...
The notions of ownership, substance and commercial rationality are identified as controlling criteria for compliance with the arms length principle, which has its origin in contract law. This conclusion is reinforced with analysis of international court cases. Common intercompany arrangements of IP holding, cash pooling and debt factoring further suggest that the starting point of any transfer pricing analysis should be the identification of the mandatory terms of intercompany contracts. A template for contract analytics is therefore also provided.
The framework for contemporary transfer pricing analysis that is developed defines the boundaries of the arms length principle, with the objective of eliminating economic double taxation and neutralizing the effect of corporate income taxation on foreign direct investment. This book is unique in that it takes a legal approach to transfer pricing in the context of tax law. It can be consulted by transfer pricing practitioners, tax officials and academics alike in countries where the arms length principle based on article 9 of the OECD Model is endorsed in domestic law.
Publication date: 2017-06-01
Number of pages: 262
Subjects: Non-fiction, Business / Law, Business Communication