Weekly transfer pricing roundup – 13 March 2017

As I am sitting in my hotel room, getting ready for my presentation today, I remembered a great documentary called, “The Price We Pay”. If you should find yourself in a tight spot to explain the issues that brought us BEPS, just put on this trailer.

South Africa: The 2017 South African Budget Review: Cross-Border IP Transactions (ENS)

“…Government has proposed that companies and individuals no longer need the South African Reserve Bank’s approval for “standard intellectual property transactions” and that the “loop structure restriction for all intellectual property transactions” be lifted, provided that such transactions are arm’s length and at a fair market price…”

Even thought the rules have been relaxed, approvals are still required. If indeed SARB is more likely to approve these type of transactions, we still have to consider other applicable laws such as the the South African tax Act so it isn’t all smooth sailing yet.

Who’s afraid of the Google Tax? Not you know who (Financial Review)

“Google is facing a watershed in the next four months over its tax arrangements in Australia – the most visible flashpoint in the dispute that has been building between the tax office and big tech companies for more than three years.

The first key date is at the end of April, when Google Australia usually files its results for calendar 2016.

This is the first year for Australia’s Multinational Anti-Avoidance Law (MAAL), also known as the Google Tax, which came into operation on January 1 last year.

The second date is in June, when tax commissioner Chris Jordan has forecast tax assessments totaling $2 billion will be issued to seven global businesses.

Almost all of these cases grew out of an international collaboration that Mr Carmody proposed at a meeting of the OECD’s Forum on Tax Administration (FTA) in October 2013, to target big tech companies…”

It is going to be interesting, I will blog about the relevant updates or course.

Government hopes to resolve 100 transfer pricing issues by year end (The Economic Times)

“MUMBAI: For the first time the government may end up resolving about 100 transfer pricing issues by signing advance pricing agreements (APAs) with multinationals this fiscal, people in the know said. Till February end, the government has signed about 75 APAs with multinationals, and expects that more transfer pricing issues could be resolved by the end of March, this year…”

Cyprus: Abolition Of The Minimum Acceptable Margins On Loans Between Related Parties (Mondaq)

“The Tax Department has announced in February 2017 its intention to terminate the current tax practice in relation to the minimum acceptable margins on loans granted to related parties.

The decision to abolish this long established practice was driven by the necessity of the Cyprus tax system to be fully compliant with the current international tax developments (OECD/G20 initiative – BEPS) as well as a review from an EU State Aid perspective.

Based on the announcement, the existing practice with the minimum acceptable margins will apply up to 30th June 2017, and from 1st July 2017 any loan transactions between related parties should satisfy the arm’s length principle and be based on current market conditions…”

What are your thoughts?

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