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Take advantage of our free expert resources, written by the experts at LCN Legal, based on their practical experience of working with multinational groups and their advisers across the globe. If you are interested in these areas, you may wish to bookmark this page to check back regularly for new information.

Intercompany agreements for transfer pricing compliance in regulated groups

Paul Sutton

For regulated groups such as those in the financial services sector, regulatory considerations usually ‘trump’ transfer pricing optimisation. This is for obvious reasons: regulatory compliance is the ‘ticket to play’, as non-compliance can be an existential threat. Special considerations apply to intercompany agreements for these groups. If a regulated entity procures services from another entity,…

Intercompany Agreements

In celebration of German Unity Day

Paul Sutton

    As today is German Unity Day, I thought it would be appropriate to celebrate something that embodies one of that country’s many strengths. Even though our focus at LCN Legal is global and not country-specific, Germany has a very special place in my heart. As part of my law degree I spent a…

Intercompany Agreements

When is it appropriate to ‘backdate’ Transfer Pricing policies?

Paul Sutton

We often get asked whether it is legally possible to backdate intercompany agreements. (Answer: it depends.) But what about backdating of transfer pricing policies themselves? We recently came across the advice below from the TP function of a Big 4 firm: “We note the new formalised TP policy was signed in ***** 2022 but backdated…

Intercompany Agreements

Responsiveness in transfer pricing, tax and legal advice: what standards do you set?

Paul Sutton

I find this a fascinating subject. When I’m a consumer of services, responsiveness is really important to me. So if I send an email asking for help with something, I want: * a prompt (i.e. same-day) acknowledgement of my query * a clear ETA for the relevant deliverables * the deliverables to be actually delivered…

Intercompany Agreements

Do intercompany agreements align with TP policies? Three things to check

Paul Sutton

Here’s how to check that a group’s intercompany agreements (ICAs) align with its TP policies. 1. Identify the intercompany transactions types which feature in the group’s TP policies. If necessary, prioritise for risk and materiality. 2. Check samples of the ICAs actually in place for each transaction type. In each case, consider (i) whether subject…

Intercompany Agreements

Breaking news: scientists slam lawyers for dodgy drafting

Paul Sutton

A recent newsletter from Richard Tromans’ Artificial Lawyer blog (which is well worth subscribing to, by the way) reports on a study by the Massachusetts Institute of Technology which found that a lot of contracts drafted by lawyers are hard to read. I don’t think anyone would seriously argue with that. The same criticism might…

Intercompany Agreements

A reminder to all of us of why we’re here…

Paul Sutton

You’ve probably seen the news story that Yvon Chouinard, the founder of Patagonia, has given his company to a charitable trust – which may amount to around $100 m a year. Coincidentally, I recently posted about Yvon Chouinard, gratuitously using a picture of him to illustrate the concept of ‘legal anchors’ in transfer pricing. But…

Intercompany Agreements

Exclusive Distribution Rights: approach with caution

Paul Sutton

When TP arrangements involve Exclusive Distribution Rights, they can sometimes go off the road. Ordinarily, the grant of a right (including in respect of IP) involves five main elements: 1. the subject matter of the right (e.g. trade marks, patents etc). 2. the permitted use (e.g. to carry on a specified business). 3. the geographical…

Intercompany Agreements

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