TPG2022 Annex to OECD Transfer Pricing Guidelines paragraph 10

Posted on | By OECD
Category: OECD Transfer Pricing Guidelines (2022), TPG2022 Annex to the OECD TPG – Monitoring procedures and involvement of business
« | »

A key aspect of monitoring will be to identify and then to analyse difficult fact patterns and problem areas which may be illustrated by practical examples and which present obstacles to an internationally consistent application of the transfer pricing methods set out in the Guidelines. Monitoring will also include areas where the Guidelines appear to offer no or inadequate guidance to tax authorities or taxpayers. All member countries will be actively involved in this process and recognise that resources will be required to ensure its success. The business community will also be involved in the monitoring (see Section C of this annex).

Related Guidelines

TPG2022 Chapter IV paragraph 4.163 Concerns have also been expressed that, because of the nature of the APA procedure, it will interest taxpayers with a good voluntary compliance history. Experience in some countries has shown that, most often, taxpayers which would be interested in APAs are very large corporations which would be audited on a...
TPG2022 Annex to OECD Transfer Pricing Guidelines paragraph 1 In July 1995, the OECD Council approved for publication the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (“the Guidelines”), submitted by the Committee on Fiscal Affairs (“the Committee”). At the same time, the OECD Council endorsed the Committee’s recommendation that the Guidelines be reviewed and up-dated periodically as...
TPG2022 Annex to OECD Transfer Pricing Guidelines paragraph 2 To summarise, the main purpose of the monitoring is to examine how far member countries’ legislation, regulations and administrative practices are consistent with the Guidelines and to identify areas where the Guidelines may require amendments or additions. The monitoring should not only lead to identification of problematic issues, but also...
TPG2022 Chapter II Annex II example 10 46. Company A designs, develops and produces a line of high technology industrial products. A new generation of the product line incorporates a key component developed and created by Company B, an associated enterprise of Company A. This key component is highly innovative, incorporating unique and valuable intangibles. This innovation...
TPG2022 Annex to OECD Transfer Pricing Guidelines paragraph 11 The first issue is the procedure to be used and the responsibility assigned for identifying the difficult case paradigms, focusing on issues and situations where the Guidelines may provide no or inadequate guidance or where member countries might be interpreting the Guidelines differently and therefore presenting obstacles to an internationally...
TPG2022 Chapter VII paragraph 7.49 The following bullet points provide examples of services that would likely meet the definition of low value-adding services provided in paragraph 7.45: accounting and auditing, for example gathering and reviewing information for use in financial statements, maintenance of accounting records, preparation of financial statements, preparation or assistance in operational and...
TPG2022 Annex to OECD Transfer Pricing Guidelines paragraph 23 The aim of this element in the monitoring process is to keep the member countries informed about developments in each others’ countries. There are usually well established ways at the national level by which the business community can make an input into any developments in the transfer pricing legislation, regulations...
TPG2022 Chapter VI paragraph 6.49 The relative importance of contributions to the creation of intangible value by members of the group in the form of functions performed, assets used and risks assumed will vary depending on the circumstances. For example, assume that a fully developed and currently exploitable intangible is purchased from a third party...
TPG2022 Chapter IV Annex II paragraph 52 The success of the MAP APA process, as an alternative to relying solely on traditional audit or examination techniques, depends to a large extent on the commitment of all the participants. The ability of the relevant competent authorities to reach agreement in a prompt manner will be determined both by...
TPG2022 Chapter IV paragraph 4.161 An APA program may initially place a strain on transfer pricing audit resources, as tax administrations will generally have to divert resources earmarked for other purposes (e.g. examination, advising, litigation, etc.) to the APA programme. Demands may be made on the resources of a tax administration by taxpayers seeking the...