The Resource The transfer-pricing profit-split method after BEPS : back to the future

The transfer-pricing profit-split method after BEPS : back to the future

Label
The transfer-pricing profit-split method after BEPS : back to the future
Title
The transfer-pricing profit-split method after BEPS : back to the future
Creator
Subject
Language
eng
Summary
In 2018, the Organisation for Economic Co-operation and Development/Group of Twenty (OECD/G20) Inclusive Framework on base erosion and profit shifting (BEPS): action 10 issued revised guidance on the transactional profit-split method. Regrettably, the revised guidance failed to provide the opportunity for the profit-split method to be more often the most appropriate transfer-pricing method. The revised guidance expressly states that the lack of comparable uncontrolled transactions, by itself, is not a basis for the use of the profit-split method. Under the former guidance, the profit-split method was used infrequently. In the revised guidance, the threshold requirements for the use of the profit-split method are still restrictive. Consequently, it is likely that the profit-split method will rarely be the most appropriate transfer-pricing method. Nevertheless, the residual profit-split method is being considered for BEPS action 1, on the taxation of the digital economy. Two of the proposals under pillar 1 of the Inclusive Framework's 2019 short policy note involve the use of the residual profit-split method to allocate profits. These proposals involve new profit allocation rules that go beyond the arm's-length principle
Citation source
In: Canadian tax journal = Revue fiscale canadienne. - Toronto. - Vol. 67 (2019), no. 4 ; p. 1077-1105
http://library.link/vocab/creatorName
Kobetsky, M
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • OECD
  • transfer pricing
  • profit split method
  • BEPS Project (OECD)
  • digital economy
  • Pillar 1 (OECD)
  • allocation of profits
  • MNE
  • arm's length principle
Label
The transfer-pricing profit-split method after BEPS : back to the future
Instantiates
Publication
Label
The transfer-pricing profit-split method after BEPS : back to the future
Publication

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