International Archives - Page 5 of 15

Italian Supreme Court Ruling on Transfer Pricing: Inclusion of Loss-Making Entities in Comparability Analyses

FP News, International, International Tax, Italy, OECD, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

The Italian Supreme Court’s 2024 ruling mandates including loss-making entities in transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More comparability analysisA Comparability Analysis is an essential framework in Transfer Pricing used to evaluate whether the conditions of a transaction between related entities (such as subsidiaries of the same multinational enterprise) are consistent with the arm’s length principle. The arm’s length principle requires that intercompany transactions reflect terms that independent entities would negotiate under comparable circumstances, ensuring that multinational corporations (MNEs)... More, aligning with OECDThe Organisation for Economic Co-operation and Development (OECD) is an international organisation comprising 38 member countries, established to foster economic growth, trade, and development on a global scale. Founded in 1961, the OECD provides a forum for governments to collaborate, share policy experiences, and develop solutions to common economic challenges. The OECD's core mission is to promote policies that improve... More guidelines.

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Transfer Pricing and Profit Attribution to Permanent Establishments: Insights from Recent Cases

Dispute Resolution, FP News, International, International Tax, Tax Dispute Resolution, Transfer Pricing / Dr Daniel N Erasmus

In the increasingly complex landscape of international taxationFOR MORE INSIGHT ON INTERNATIONAL TAXATION, PLEASE READ THIS ARTICLE: Introduction to International Taxation: Key Concepts & Guidelines International Taxation encompasses the framework of laws, principles, and treaties that govern the tax obligations of individuals and entities engaged in economic activities that span multiple jurisdictions. This field addresses how income, profits, and gains are taxed when operations or investments extend... More, Transfer PricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More and Profit Attribution to Permanent Establishments (PEs) have emerged as critical issues. The intricacies involved in appropriately allocating profits to PEs, especially in cross-border scenarios, continue to challenge multinational corporations and tax authorities alike.

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Dr. Daniel N Erasmus to Address Key Transfer Pricing Challenges at Africa 2024 Conference

Africa, FP News, International, International Tax, Transfer Pricing / Dr Daniel N Erasmus

Dr. Daniel N Erasmus, a leading expert in international tax law and transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More, will be a key speaker at the upcoming Online Transfer PricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More Conference Africa 2024.

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Announcement: Online Transfer Pricing Conference Focused on Africa

Africa, FP News, International, International Tax, Transfer Pricing / Dr Daniel N Erasmus

The Academy of Tax LawTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... More is excited to announce an online Transfer PricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More Conference specifically emphasising Africa. This event will take place in November 2024 and will delve into global transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More issues.

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Exchange of information on reportable cross-border tax arrangements: CJEU Judgment in Case C-623/22

Begium, Dispute Resolution, EU, Europe, FP News, International, International Tax, Tax Dispute Resolution, TP Case Summaries / Dr Daniel N Erasmus

The judgment in the case C-623/22, issued by the Court of Justice of the European Union (CJEU) on July 29, 2024, primarily addressed the validity of certain provisions of Directive 2011/16/EUCouncil Directive 2011/16/EU, often referred to as the "Directive on Administrative Cooperation" (DAC), establishes a comprehensive framework for the exchange of tax information among EU Member States. Its primary objective is to promote transparency and combat tax evasion, ensuring all EU countries have access to information on taxpayers' cross-border income, assets, and activities. This directive mandates administrative cooperation among national... More as amended by Directive 2018/822Directive 2018/822, also known as DAC6, is an amendment to the European Union's Directive on Administrative Cooperation in the field of taxation (DAC). Effective from June 25, 2018, DAC6 mandates the reporting of certain cross-border tax arrangements to ensure transparency, combat aggressive tax planning, and prevent tax avoidance. This directive focuses on specific arrangements that may present potential tax risks,... More, concerning the mandatory automatic exchange of information on reportable cross-border tax arrangementsCross-border tax arrangements refer to any financial, operational, or structural plans designed by entities with activities or investments across multiple countries. These arrangements often leverage international tax laws and treaties to optimise tax liabilities and ensure compliance in each jurisdiction. Cross-border tax arrangements are crucial for multinational corporations (MNCs) as they help balance tax efficiencies with regulatory adherence across diverse... More.

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The Importance of Organizational Structure and Business Overview in Transfer Pricing Documentation

Dispute Resolution, International, International Tax, Tax Dispute Resolution, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

The importance of organizational structure and business overview in transfer pricing documentation cannot be overstated. These elements provide the foundation for accurate and defensible transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More practices.

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Transfer Pricing Policies and Methodologies in Transfer Pricing Documentation

Dispute Resolution, International, International Tax, Tax Dispute Resolution, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

Transfer pricing policiesTransfer Pricing Policies refer to the rules and methods established by multinational enterprises (MNEs) to determine the pricing of transactions between related parties, such as subsidiaries or divisions of the same company. These transactions may involve the transfer of goods, services, intellectual property, or financial arrangements. Transfer pricing policies are essential for ensuring that intercompany transactions adhere to the arm’s... More and methodologies are critical components of transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More documentation, which is essential for multinational corporations (MNCs) to ensure tax complianceTax Compliance refers to the adherence of individuals and businesses to the tax laws and regulations of a specific jurisdiction. It encompasses the timely and accurate filing of tax returns, the payment of tax liabilities, and ensuring that all tax-related obligations are met as stipulated by legislation. Compliance involves more than just submitting tax forms; it includes maintaining accurate financial... More and avoid profit shiftingProfit Shifting is a strategic practice employed by multinational enterprises (MNEs) to reduce their global tax liability by shifting profits from high-tax jurisdictions to low- or no-tax jurisdictions. The primary method involves transferring income-generating activities, intangible assets, or other high-value components within the group to countries with favourable tax regimes. Profit Shifting is a critical concern for tax authorities and... More.

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Importance of Financial Data and Calculations in Transfer Pricing Documentation

Dispute Resolution, International, International Tax, Tax Dispute Resolution, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

The importance of financial data and calculations in transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More documentation cannot be overstated. Accurate financial information forms the backbone of any robust transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More analysis, ensuring compliance with tax regulationsTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... More and mitigating risks associated with cross-border transactionsIntra-Group Transactions are interactions between entities within the same multinational enterprise (MNE). Such transactions form the backbone of related-party dealings and are essential in managing global operations and aligning business objectives across jurisdictions. Understanding intra-group transactions is critical in international tax and transfer pricing, as they directly impact a company's tax obligations, profitability, and compliance standing. Tax professionals, accountants, lawyers,... More.

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Understanding Intra-Group Losses in Transfer Pricing: Key Insights from Recent Cases

Argentina, Czech Republic, France, International, International Tax, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

Intra-group losses in transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More have become a focal point of legal scrutiny and regulatory enforcement. The recent cases of Dart Sudamericana, ST Dupont, and Stora Enso highlight the complexities and challenges multinational enterprisesWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... More (MNEsWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... More) face in justifying and managing these losses.

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The Resale Price Method in Major Transfer Pricing Cases

Dispute Resolution, International, International Tax, Tax Dispute Resolution, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

Transfer pricing continues to be a critical issue for multinational corporations. The resale price method (RPM) plays a significant role in many high-profile cases. This article examines the importance of RPM in four major transfer pricing disputes and offers insights for better managing these risks.

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