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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.

Danish Oil Exploration Transfer Pricing Case and Joint Operating Agreements

13 October 2023 Guest Author

This is a guest post by Harold McClure, a New York City-based independent economist with 26 years of transfer pricing and valuation experience. (One of several that he has written for us.) He considers the issues arising from the Denmark’s Supreme Court’s recent ruling in A.P. Møller – Mærsk A/S v. Skatteministeriet. Denmark’s Supreme Court…

Intercompany Agreements

Intercompany agreements for low value-adding intra group services

9 October 2023 Paul Sutton

A reminder of the requirements of the OECD TP guidelines Apologies to any transfer pricing professionals who find this blog post a bit dull. After all, what could be less challenging from a TP perspective than low value-adding services? Isn’t it just cost plus 5%, and done? Well… not quite. One fact which is often…

Intercompany Agreements

Let’s kill the ‘economic owner’

22 September 2023 Paul Sutton

The limited uses – and much greater disadvantages – of the term ‘economic owner’ I’ll start by making it very clear that in the headline of this post I’m talking figuratively, and purely for the purposes of transfer pricing. I hope that goes without saying… The term ‘economic owner’ may in some limited cases be…

Intercompany Agreements

New article in the Tax Notes journal: updated German TP guidelines are a clear statement on economic substance

15 September 2023 Paul Sutton

I’m delighted to announce that my colleague Rebecca Flanagan and I have written an article for the Tax Notes journal. You’ll find it here. In it we examine the German Ministry of Finance’s Administrative Principles on Transfer Pricing, which were updated in June. These will require attention by any groups who operate in Germany. And…

Intercompany Agreements

Intercompany debt: the third (and often neglected) key factor

8 September 2023 Paul Sutton

Some practical thoughts (and a few unpractical ones) about debt Debt is one of the most contentious and emotive issues there is. In some cultures and religions debt is tightly restricted, or at least strongly discouraged, and there are hundreds of proverbs and quotes on the subject dating back centuries. While some are amusing (such…

Intercompany Agreements

Mylan Australia Intercompany Financing: Thin Cap or Pricing?

23 August 2023 Guest Author

This is a guest post by Harold McClure, a New York City-based independent economist with 26 years of transfer pricing and valuation experience. (One of several that he has written for us.) He considers some ongoing litigation in Australia – Mylan Australia Holding Pty Ltd v. Commissioner (FCA 672 2023) – and highlights two critical…

Intercompany Agreements

Risk in TP: the four conditions for effective risk allocation

18 August 2023 Paul Sutton

Why third party agreements are often inappropriate for intra-group transactions Most people would agree that there’s little point in benchmarking a controlled transaction until that transaction has been properly delineated. It would be as futile as attempting to value a property without first identifying its location. Unconnected third parties instinctively price risk in to their…

Intercompany Agreements

‘Tax audit-ready’ AND ‘regulatory audit-ready’ – managing intercompany agreements for regulated groups

13 August 2023 Paul Sutton

We all know that intercompany agreements (aka ICAs) are not just about transfer pricing. They also need to meet the needs of other stakeholders, such as regulators. Regulated groups (such as those in the financial services sector) face a very specific problem when it comes to ICAs: silo-based approaches to the form and content of…

Intercompany Agreements