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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.

Does frequency of invoicing matter in intercompany transactions?

23 August 2021   Paul Sutton

This week we’d like to ask you for your insights. When we work alongside TP professionals to create intercompany agreements for multinational groups, we typically focus on the four main areas of alignment: 1. Delineating the transaction through the parties’ functions and obligations 2. Allocation of risk 3. Ownership of intangible assets 4. Pricing, including…

Intercompany Agreements

Making comparability transparent

2 August 2021   Paul Sutton

One of the key functions of intercompany agreements is to be transparent as regards key matters such as risk allocation, compensation (pricing), and ownership of intangible assets. What does ‘transparent’ mean in this context, and why does it matter? Transparency requires that intercompany agreements should be easily understood by the reader, no matter who that…

Intercompany Agreements

Live Workshop for TP Advisers: Scoping Local Sales Entities

5 July 2021   Paul Sutton

In our experience, MNEs screw up their arrangements involving local sales entities more often than any other intercompany transaction type. We’re talking here from the perspective of legal implementation of TP policies. Why does this matter? Because the transaction will fail at Step 4 of the OECD steps for analysing risk and pricing transactions, since…

LCN Updates

Coca-Cola’s US$ 12 billion IP mistake

24 June 2021   Paul Sutton

The following article first appeared in IP Briefs, the journal of the South African Institute of Intellectual Property Law. One might think that an organisation with one of the most recognised and valuable brands in the world, founded in 1892, might be a well-oiled machine when it comes to managing its intellectual property rights. And…

Intercompany Agreements

TP Audits – Get Your ‘Hard Hat’ at TP Minds International!

14 June 2021   Paul Sutton

It’s TP Minds International this week, and I’m looking forward to contributing to a panel discussion on ‘Managing TP Audits and Defending Your TP Position’ on Wednesday 16th at 13.05 BST. The discussion will feature Catherine Harlow, Head of TP at AstraZeneca and Kurt Wulfekuhler, TP Director at Verizon Communications, and will be chaired by Anton Hume,…

LCN Updates

How should TNMM / CPM arrangements be implemented in ICAs?

8 June 2021   Paul Sutton

Some TP methods – specifically, the cost plus method – imply a specific drafting structure for pricing clauses in intercompany agreements (ICAs). Others do not. Take for example, the Transactional Net Margin Method (TNMM), aka the Comparable Profits Method (CPM). This method may suggest a drafting approach based on the relevant profit or margin, or…

Intercompany Agreements

Checklists for creating, reviewing & updating Intercompany Agreements

24 May 2021   Paul Sutton

Defective intercompany agreements can undermine your transfer pricing policies, and can give rise to unnecessary risks of adverse tax adjustments, fines and penalties. The team at LCN Legal have created a suite of practical checklists which is designed to help multinational groups ensure that their intercompany agreements are aligned with their transfer pricing policies, and…

Intercompany Agreements

Transfer Pricing Override Clauses – Yes or No?

26 April 2021   Paul Sutton

We are sometimes asked to include ‘Transfer pricing override’ clauses in intercompany agreements (ICAs). These clauses are intended to adjust the contractual price to the price charged for tax purposes if there is a TP adjustment at either end of the transaction. This sounds like a good idea: a clause which can go back in…

Intercompany Agreements
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