The Resource The OECD Transfer Pricing Guidelines for financial transactions and the Dutch practice of addressing the debt-equity balance

The OECD Transfer Pricing Guidelines for financial transactions and the Dutch practice of addressing the debt-equity balance

Label
The OECD Transfer Pricing Guidelines for financial transactions and the Dutch practice of addressing the debt-equity balance
Title
The OECD Transfer Pricing Guidelines for financial transactions and the Dutch practice of addressing the debt-equity balance
Creator
Subject
Language
  • eng
  • eng
Summary
The Netherlands has in place a system to counter excessive interest deductions on related party loans that is historically based on a hodgepodge of specific anti avoidance rules and related jurisprudence, the fundament of which has been seriously stretched and repurposed over time in such a fashion, that understanding the logic of the system presents a challenge for non-Dutch practitioners. Since this is jurisprudence based on domestic law, in the international context, non-deductible interest payments invariably are exposed to double taxation if the recipient thereof is located in a country where such interest income is currently taxed. With the new OECD transfer pricing guidance for financial transactions available, there is an argument to consider applying the arm's length standard more consistently to analyse and if need be recharacterize (parts of) intercompany loans, for the simple reason that almost every country is likely to understand the basis for the proposed adjustments. This article sets out the relevant part of the new OECD transfer pricing guidance for financial transactions relating to intercompany loans and the Dutch historically grown approach to recharacterizing intercompany/shareholder loans
Citation source
In: International tax journal. - Riverwoods. - Vol. 46 (2020), no. 3 (May-June) ; p. 9-18
http://library.link/vocab/creatorName
  • Herksen, M. van
  • Jie-A-Joen, C
  • Flipsen, P.H.M
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • OECD Transfer Pricing Guidelines
  • intercompany loan
  • interest deduction
  • arm's length principle
Label
The OECD Transfer Pricing Guidelines for financial transactions and the Dutch practice of addressing the debt-equity balance
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2020/G-I/ITJ/3_OECD.pdf
Instantiates
Publication
Note
20200820
Label
The OECD Transfer Pricing Guidelines for financial transactions and the Dutch practice of addressing the debt-equity balance
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2020/G-I/ITJ/3_OECD.pdf
Publication
Note
20200820

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