Transfer Pricing is one of the major strategic issue areas under “Income Shifting” on the Business Inbound face of the International Matrix. Since the determination of arm’s length pricing is based on the facts and circumstances of each case, the transfer pricing audit is fact intensive. While most major industrialized countries, as members of the Organisation for Economic Co operation and Development (“OECD”), have agreed to apply a common arm’s length principle in their transfer pricing analyses, each country may have varying interpretations of the arm’s length principle. Often a transfer pricing audit results in disagreements with respect to the methodologies applied by the taxpayer and the IRS. Addressing such disputes can be time consuming and a resource challenge to both tax administrators and taxpayers. Therefore, some taxpayers seek to reach agreement on transfer pricing methodologies on a prospective basis. In February 2012, the IRS established the Advance Pricing and Mutual Agreement Program (“APMA”) to oversee its Advance Pricing Agreement (“APA”) program and to act as the representative office of the U.S. competent authority responsible for handling competent authority cases arising under the business profits and associated enterprises articles of U.S. tax treaties. APMA enables the IRS and the taxpayer to resolve transfer pricing issues under IRC 482 and the regulations thereunder, as well as under relevant U.S. income tax treaties. An APA is a voluntary process conducted in a cooperative manner on a prospective basis, and in certain cases, may incorporate prior tax years as well. The APA process increases the efficiency of compliance and audit by encouraging taxpayers to come forward voluntarily and present all the facts necessary for the proper evaluation of the proposed issues to be covered in an APA request (“Covered Issues”), and working cooperatively with the IRS to secure mutual agreement regarding the pricing of the Covered Issues. This gives taxpayers greater certainty, reducing the burden of compliance on the taxpayer. The APA process is also one of the effective Alternative Issue Resolution tools that allow the IRS and the taxpayer to resolve transfer pricing issues.
Transfer Pricing. “thin capitalisation”, “earnings stripping”, “controlled foreign corporation” and other tax restrictions, “exchange control restrictions”, “capital maintenance” rules and “liquidity impairment” rules, tax restrictions, retention of title claims, employee consultation or approval requirements and similar principles may limit the ability of a member of the Group to provide a guarantee or security or may require that the guarantee or security be limited as to amount or otherwise and, if so, the guarantee or security will be limited accordingly, provided that, to the extent requested by the Collateral Agent before signing any applicable security or accession document, the relevant member of the Group shall use reasonable endeavours (but without incurring material cost and without adverse impact on relationships with third parties) to overcome any such obstacle or otherwise such guarantee or security or accession document shall be subject to such limit;
Examples of Transfer Pricing in a sentence
The concept of “roll-back” is further elaborated in paragraph 4.136 of Section F (Advance pricing arrangement) of Chapter IV of the Transfer Pricing Guidelines and in paragraph 69 of Section D.4.2 (Possible retrospective application (“Roll back”)) of the Annex to Chapter IV (Guidelines for Conducting Advance Pricing Arrangements under the Mutual Agreement Procedure (“MAP APAs”)) of the Transfer Pricing Guidelines.
Two questionnaires launched by the EU Joint Transfer Pricing Forum (JTPF) in 2011 took stock of the situation prevailing in each EU Member State with respect to secondary and compensating year- end adjustments as on 1 July 2011.
All domestic related party contracts / arrangements shall, wherever applicable, comply with Domestic Transfer Pricing Requirement under section 92BA of Income Tax Act, 1961 including certification from independent accountants under the Transfer Pricing Regulations.
All international related party contract / arrangements shall comply with International Transfer Pricing Requirement under section 92B of Income Tax Act, 1961 including certification from independent accountants under the Transfer Pricing Regulations.
See Wittendorff, Transfer Pricing and the Arm’s Length Principle in International Tax Law, p.
More Definitions of Transfer Pricing
Transfer Pricing means the determination of prices charged in transactions between associates;
Transfer Pricing means the pricing charged by Company to Parent or any of its Affiliates (other than the BioD Companies) for any BioD Company Products.
Transfer Pricing means the pricing of inter-company loans, or transfer of goods or services such that–
Transfer Pricing means the prices at which related parties within a multinational enterprise (“MNE”) transfer goods, services and intangible property among one another
Transfer Pricing means the arm’s length price that is charged by a party for products and services it provides to another related party, in order to calculate each party’s profit and loss separately.
Transfer Pricing. “thin capitalisation”, “earnings stripping”, “exchange control restrictions”, “capital maintenance” rules and “liquidity impairment” rules, tax restrictions, retention of title claims, employee consultation or approval requirements and similar principles may limit the ability of a member of the Group to provide a guarantee or security or may require that the guarantee or security be limited as to amount or otherwise and, if so, the guarantee or security will be limited accordingly, provided that, to the extent requested by the Notes Collateral Agent or the Trustee (acting at the direction of Required Holders) before signing any applicable security or accession document, the relevant member of the group consisting of the Company and the Restricted Subsidiaries (the “Group”) shall use reasonable endeavours (but without incurring material cost and without adverse impact on relationships with #96856647v2 third parties) to overcome any such obstacle or otherwise such guarantee or security document shall be subject to such limit;
Transfer Pricing means the price that is assumed to have been charged by one segment of an organization for products and services it provides to another segment of such organization, in order to calculate each segment’s profit and loss separately.