On the European Commission's understanding of the arm's length principle in international taxation versus State aid matters : treaty violations and high stakes in play

Resource Information

The work On the European Commission's understanding of the arm's length principle in international taxation versus State aid matters : treaty violations and high stakes in play represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

On the European Commission's understanding of the arm's length principle in international taxation versus State aid matters : treaty violations and high stakes in play

Creator

• Castagna, S

Subject

• European Union
• OECD
• EU Treaty
• State aid
• arm's length principle
• OECD Transfer Pricing Guidelines

Language

eng

Summary

The European Union is bound to a duty of consistency between its internal policies and external action and a duty of sincere cooperation with its Member States. When addressing the status of the OECD Transfer Pricing Guidelines and the OECD arm's length principle, the European Commission has adopted two different views: one in matters of domestic income taxation of third states and its Members, and another dealing with EU State aid. This article addresses the consequences of such behaviour. It concludes that the aforementioned duties require the European Commission to deem the OECD Transfer Pricing Guidelines as the only possible implementation of the arm's length principle when addressing State aid transfer pricing matters. The European Commission can, however, still decide to engage Member States to further its positions on the matter in order to develop the understanding of the arm's length principle and the OECD Transfer Pricing Guidelines at the OECD level

Citation source

In: World tax journal. - Amsterdam. - Vol. 13 (2021), no. 3 ; p. 481-497

Geographic coverage

International

Language note

English