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Intercompany Agreements

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

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

Bifurcation of local vs offshore intangibles: a legal perspective on commercial rationale

29 June 2023   Paul Sutton

Although you could say that the international world doesn’t need yet more unilateral tax measures or country-specific TP compliance rules, I would give the ATO the benefit of the doubt. I applaud the ATO’s attempts to articulate clearly the standards of governance and documentation which MNEs are expected to achieve. The ATO’s recently updated draft…

Intercompany Agreements

Updated ATO guidance raises the bar for TP compliance

12 June 2023   Paul Sutton

ATO updated guidance on intangibles: the role of intercompany agreements On 17 May 2023 the Australian Taxation Office (ATO) released the second draft of its Practical Compliance Guideline (PCG) 2023/D2 on Intangibles Arrangements. The PCG does not express a view on the pricing of individual arrangements. Instead, it provides a high-level framework for taxpayers to…

Intercompany Agreements

Internal carbon pricing: an intercompany legal perspective

21 May 2023   Paul Sutton

The TP treatment of ICP: corporate law fundamentals apply Internal carbon pricing (ICP) is not new – companies such as Microsoft are reported to have introduced internal carbon fees over 10 years ago. ICP policies are designed to factor in the estimated cost of carbon dioxide emissions into business decisions. Such policies can take a…

Intercompany Agreements

Amgen litigation: TP risks can extend far beyond tax compliance

15 May 2023   Paul Sutton

The Amgen class action law suit shows the potential impact of TP risks on M&A On 13 March 2023, a claim was filed against Amgen Inc, the biopharmaceutical group, as part of a proposed class action by investors. It’s an interesting example of how the management of TP risks can have far wider implications than…

Intercompany Agreements
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