Difficulties can arise in the context of business restructuring where the valuation of an intangible or rights in an intangible at the time of the transaction is highly uncertain. In these cases, the question arises as to how arm’s length pricing should be determined. The question should be resolved, both by taxpayers and tax administrations, by reference to what independent enterprises would have done in comparable circumstances to take account of the valuation uncertainty in the pricing of the transaction. To this aim, the guidance in Section D.3 of Chapter VI is relevant.
TPG2017 Chapter IX paragraph 9.62
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By OECD
Category: OECD Transfer Pricing Guidelines (2017) | Tag: Business restructuring, Hard-to-value intangibles (HTVI), Transfer of value, Valuation
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