The Resource The pricing of financial instruments in tax disputes

The pricing of financial instruments in tax disputes

Label
The pricing of financial instruments in tax disputes
Title
The pricing of financial instruments in tax disputes
Creator
Subject
Language
  • eng
  • eng
Summary
The pricing of uncertainties, when establishing the market value of financial instruments, is problematic in tax litigation since the outcome of the litigation is binary. Different values can be equally correct, depending on the choice of models, assumptions regarding model parameters and forecasting techniques. The purpose of this article is to illustrate the challenges for tax administrations and courts in terms of the need and ability to price uncertainties in the market valuation of financial instruments. The authors illustrate the complexities with a case based on a publicly traded instrument, which gives a lower limit of the uncertainty associated with valuation. The authors then problematize the valuation of over-the-counter traded and non-publicly traded instruments, which, due to uncertainty, tends to create leeway for tax arbitrage. This illustration shows the necessity to further understand the manner in which courts reason, the dependency on experts and the use of models
Citation source
In: Derivatives and financial instruments. - Amsterdam. - Vol. 21 (2019), no. 2 ; 11 p
http://library.link/vocab/creatorName
  • Hilling, A
  • Sandell, N
  • Vilhelmsson, A
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • transfer pricing
  • financial instrument
  • valuation
  • dispute resolution
Label
The pricing of financial instruments in tax disputes
Instantiates
Publication
Note
20190508
Other control number
dfi_2019_02_int_1.html
Label
The pricing of financial instruments in tax disputes
Publication
Note
20190508
Other control number
dfi_2019_02_int_1.html

Library Locations

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      52.3736660 4.9336932
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