The Resource Intangible property - part 2

Intangible property - part 2

Intangible property - part 2
Intangible property - part 2
QUESTIONS: I. Issue Five: Please elaborate on which are the valuation methods are most utilized in practice by tax authorities in your country to determine the remuneration of controlled transactions involving intangible property (e.g. outright transfer of all substantial rights in the intangible property, the license of intangible property to an associated enterprise or the contribution of intangible property to a cost contribution arrangement [CCA]). In particular, please: a. Comment on how the lack of comparable uncontrolled transactions influences the selection of the most appropriate method. b. Comment on how often profit split methods are used in connection with cases involving transfers of intangible property as a practical matter. c. Indicate whether methods based on analysis of discounted cash flow projections are utilised extensively in valuing transferred intangible property; and, d. Indicate if the legislation or regulatory provisions provide for specific valuation methods for a specific type of transaction (e.g. CCA in the United States). II. Issue Six: Given the tax legislation, guidance, case law and practice in your jurisdiction: a. Having regard to the recent Canadian Federal Court of Appeal decision in GlaxoSmithKline Inc. v. The Queen, F.C.A., No. A-345-08, 7-26-10, is it the practice in your jurisdiction that related party charges for goods should be considered in the context of the relevant IP rights that are also made available to the purchaser? b. Please explain how the following specific situation would be treated in your country from a transfer pricing perspective. In particular, please elaborate on whether tax authorities consider (or have considered) these transactions on an aggregated basis or on a transaction-by-transaction basis. - Company A in Country A is the owner of intangible property (IP). Company A licenses the IP to Company Z, an associated enterprise in Country Z. Company Z (the licensee) utilises the licensed IP to produce products which are sold back to Company A. III. Issue Seven: Please indicate under which circumstances the taxpayer is required to make post-transaction periodic adjustments to the remuneration received in a controlled transaction involving intangible property and on what basis (legal or regulatory provisions, administrative practice, case law or other). IV. Issue Eight: Has your country concluded any APA(s) covering any of the relevant issues arising in controlled transactions involving IP (unilateral, bilateral or multilateral)?
Citation source
In: Transfer pricing forum. - Arlington. - Vol. 2 (2011), no. 1 (February) ; 78 p
Geographic coverage
Language note
  • OECD
  • intangibles
  • valuation
  • associated enterprises
  • cost contribution arrangement
  • APA
  • transfer pricing
Intangible property - part 2

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      52.3736660 4.9336932
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