Intercompany Agreements

The LCN Interview: Andrew Spiers

Andrew Spiers is a Senior Associate at LCN Legal. He has extensive experience of a wide range of corporate legal work. As we speak you’ve been at LCN Legal for about a month; has the reality matched your expectations? To be honest, it has exceeded them. Everyone has been fantastic, and the work…

Interviews

Intercompany Agreements

Virtual reality: are intercompany agreements ‘artificial’ or not?

Paul Sutton

At my recent TP Minds session in Sydney (‘How not to screw up your intercompany agreements’) we polled the audience on several questions, including the one posed in the subject line of this newsletter. We asked them to agree or disagree with the statement: ‘Intercompany agreements are artificial and only exist for transfer pricing purposes’….

Intercompany Agreements

Sweden prevails in intercompany loan arrangements where the taxpayer attempted to ignore its original agreements

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. (You may also remember him from another blog he wrote for us about the implications of the demise of LIBOR.) Here he examines the recent judgment in the case Sweden vs. Nobel…

Intercompany Agreements

Aspro, Inc. v. Commissioner: déjà vu all over again

Paul Sutton

I follow many TP and tax experts on LinkedIn, and one that I’d recommend is Filippo Miotto of BDO Australia. He recently shared an article that I found particularly striking. It concerned a recent judgment in a tax case in the USA, Aspro, Inc. v. Commissioner, which concerned the years 2012 to 2014. Over an extended period, Aspro had paid its…

Intercompany Agreements

A different view on TP audits

Paul Sutton

This week I’m in Sydney, preparing for the TP Minds Australia conference. I’ll host a panel discussion on TP audits with three experts: Evelyn Lim (Ericsson), Ben Egan (Iron Mountain) and Adnan Begic (Michelin). Tax and legal professionals often advise on risks and best practices. But they don’t always see what it’s really like from an inside perspective as part…

Intercompany Agreements

It can be hard to do the splits

Paul Sutton

Some of the most difficult intercompany agreements to create are ones that apply to profit splits. As for any intercompany transaction, it’s not enough for the agreements to faithfully implement the intended TP policies. The agreements must also map the profit splitting arrangement against what is happening from a legal perspective. Otherwise there’ll be a…

Intercompany Agreements

The secret sauce

Paul Sutton

I’d like to tell you about a case study that featured in a workshop at TP Minds Americas in April. The session, hosted by Yvonne Golby and Damon V. Pike, was entitled ‘The Secret Sauce – Blending Customs Valuation and Transfer Pricing Into A Winning Formula’. Yvonne and Damon very generously allowed me to participate, to explain the…

Intercompany Agreements

Intercompany Invoice Finance: four key legal distinctions

Paul Sutton

Factoring and invoice discounting can be used as part of intercompany financing arrangements. The terminology involved can differ from country to country, so before attempting a transfer pricing analysis it’s critical to look behind that terminology, and understand what is actually happening from a legal and commercial perspective. Here are four fundamental legal distinctions: 1….

Intercompany Agreements