It was about a year ago when I started with the weekly transfer pricing roundups. They have been fun and I hope you liked them as much as I did, but everything has to end. I have noticed that I spent a lot of time on them, but I don’t have enough time to do both, a transfer pricing roundup and a technical analysis. I do enjoy the technical aspects of transfer pricing and as such have decided to continue with the “A new transfer pricing perspective” posts. These won’t be weekly as they are more time intensive but I will aim to do 1-2 a month.
If you have any topics that you think have not been researched or discussed enough, please let me know and I will try give them a worthy analysis. If you think the weekly roundups will be missed too much, I could try do a monthly one, just on the most important bits? Do let me know your thoughts.
There was a lot of movement in transfer pricing and BEPS around Africa this week. Cameroon signed the relevant MLIs to address BEPS, becoming the 70th member to sign the MLIs. The Ghana Revenue Authority (GRA) held a three day conference on transfer pricing abuse. Continue reading “Weekly transfer pricing roundup – 17 July 2017”
The new transfer pricing guidelines will be released today. Now if that didn’t bring a smile to your face, I am not sure what will on a Monday morning. Last week, Barbados joined the inclusive framework as the 101st jurisdiction and Mauritius signed the multilateral convention to tackle tax avoidance by multinational enterprise. Hopefully, Mauritius won’t take too long to implement this in their law but this BEPS thing is moving along faster and faster. It feels like yesterday when we received thousands of pages to read from the OECD and actual implementation was still years away. Now, in six months time most larger MNEs will have to file CbC reporting, master files and local files. There are still some teething problems but the train has left the station. Continue reading “Weekly transfer pricing roundup – 10 July 2017”
The most exciting news must be that we can expect an updated version of the OECD Guidelines, this week. I have already put it on my wishlist. It should facilitate the reading between the BEPS Action points and the previous OECD Guidelines quite a bit. The info itself is already out there, but we all love a shiny new book, well I do.
Also the OECD mentioned that it will add an online database to its website in July to facilitate the matching of countries’ reservations in the respective MLIs. The OECD is now consulting with countries to check over 150,000 data points to ensure the accuracy of the database. Considering all the reservations this should assist in applying the right clauses. Continue reading “Weekly transfer pricing roundup – 03 July 2017”
Now that all the excitement of the signing of the MLIs is over, what does that mean? The OECD states that 67 countries have signed the MLI with an additional nine countries having expressed their intent to sign. The OECD expects another 25 – 30 countries to sign. This means there will be approximately 100 countries that have signed up to these MLIs shorty. This is in line with the 99 countries that have signed up for the Inclusive Framework. The signed MLIs will modify approximately 1,100 tax treaties to implement the following four action points: Continue reading “Weekly transfer pricing roundup – 19 June 2017”
Last week was a very historic week for transfer pricing enthusiasts all around the world. 67 jurisdictions signed MLIs in line with the BEPS framework to reduce the opportunity for tax avoidance. The signing of the MLIs is likely to result in 1100 tax treaties being amended, which usually would take decades. Continue reading “Weekly transfer pricing roundup – 12 June 2017”
The cat is finally out of the bag. SARS released a public draft notice that requires taxpayers to file their transfer pricing master file and local file with the tax return. The threshold is set at R100mil of total aggregate cross border related party transactions. This is lower than thresholds introduced in Europe but in line with the previous documentation retention requirements, which came into effect 1 October 2016. As always make sure you consider all thresholds throughout the countries you operate in, to make sure you are compliant around the world (same is true for CBCR). Continue reading “Weekly transfer pricing roundup – 05 June 2017”
Our transfer pricing seminars went well last week, both in Kenya and South Africa. Thanks for those of you who attended, it was great catching up. If you missed them, check out my twitter feed for some quick updates.
This week the OECD released a new discussion draft providing guidance on hard-to-value intangibles (HTVI). The approach to HTVI was previously agreed to and is published in the BEPS Action 8-10 final report. You may remember the whole ex post and ex ante discussion. Continue reading “Weekly transfer pricing roundup – 29 May 2017”
Chevron decided to appeal the AUD340 million transfer pricing ruling in relation to its financial arrangement between the US and Australia. The previous ruling is now going to the High Court and I look forward to the drama that will unravel. The ATO already started looking at other taxpayers for similar arrangements and even published some draft guidance on what is high or low risk. But more about that below. Continue reading “Weekly transfer pricing roundup – 22 May 2017”
Arguably this week has been a little softer on us in relation to transfer pricing developments, but tax authorities are still going after MNEs in different ways. The OECD has also released some more info on CRS and a great summary on CBCR per country. See below for more. Continue reading “Weekly transfer pricing roundup – 15 May 2017”