Podcasts about Transfer pricing

In this episode, panelists continue their prior discussion on some of the technical aspects of Pillar One Amount A as well as the broader historical “formulary apportionment versus arm's length” debates. 

Machado Meyer tax partner Fernando Colucci joins Skadden's David Farhat, Loren Ponds, Eman Cuyler and Stefane Victor to explore Brazil's historic shift from a 27-year formulaic transfer pricing system to full OECD compliance. As he explains, “We moved from a very strict, very formulaic approach to a simple, a direct import of the arm's-length principle.” Tune in for his insights on dramatic changes facing multinational enterprises and Brazil's notorious 75% penalty system that raises the stakes on compliance decisions.

In this TP Talks Special Edition podcast, David Ledure (Global Financial Transactions Transfer Pricing Leader, PwC Belgium) sits down with Kristina Novak (Transfer Pricing Principal, PwC US) Michael Douglas (Transfer Pricing Director, PwC Ireland), and Jake Roche (Transfer Pricing Director, PwC Australia) to discuss tax controversy with respect to intercompany financing, focusing on recent case law. They examine the challenges posed by tax authorities when it comes to benchmarking interest rates and the factors that influence these decisions, including credit risk assumptions and implicit guarantees. The speakers delve into the approaches of tax authorities in different jurisdictions, including Ireland, the United States, and Australia, particularly how they handle debt recharacterization and the application of implicit guarantees. They also discuss strategic consideration of APAs and MAPs to potentially avoid litigation and achieve double taxation relief.Support the show

In this episode, panelists provide an update on OECD Pillar One and discuss what's next. 

Looming tariffs lead to renewed focus on transfer pricing Multinational companies have used transfer pricing as a way to reduce tax bills. Transferring a product from a lower tax jurisdiction allows profits to be taxed at the lower corporate rate, so a higher price can mean greater tax savings. But tariffs would be based on the higher price, meaning that some of the same companies using this practice to lower tax bills will also face higher levies. Travis Steed discusses what this means for medtech, the impact transfer pricing has had on tax rates, whether practices could change under a tariff regime and why the group is still a compelling, defensive investment   You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2025 Bank of America Corporation. All rights reserved.

How transfer pricing works.

Future of Tax & Legal podcast episode featuring: Cameron Taheri, Global Leader for Transfer Pricing Dispute Resolution, KPMG International, and Principal, Washington National Tax at KPMG in the US, and Graeme Webster, Transfer Pricing Partner at KPMG in the UK.

Vor dem Hintergrund des Handelskonflikts mit den USA erläutern Dr. Michael Tervooren (Partner und Leiter des PwC-Bereichs Zoll, Verbrauchsteuer und Exportkontrolle) und Christoph Richter (Director Transfer Pricing PwC Nürnberg) die aktuelle Situation, Auswirkungen für Unternehmen und mögliche Handlungsoptionen aus Zoll- und Verrechnungspreis-Perspektive.

When goods, services and rights go back and forth within a company, how do you attribute profit or loss to one part of the company versus another? Former OECD head of tax treaties and transfer pricing Mary Bennett and EY's Mike McDonald join this episode of “GILTI Conscience” for a detailed discussion on the attribution of profits to permanent establishments. Skadden tax partners David Farhat and Nate Carden and associate Stefane Victor host the discussion, which explores, among other topics, critical differences between Articles 7 and 9 of the OECD Model Tax Convention and why these distinctions matter for multinational businesses.

Stefan ist Volkswirt im Bereich Tax Transfer Pricing bei PwC. Im Stellenanzeigenpodcast sprechen wir darüber, für welche Kunden Kunden – von der Unterhaltungsindustrie bis hin zu Automobilzulieferern – er Markt- und Unternehmensanalysen erstellt, bei welchen gemeinsamen Teamaktivitäten die Komfortzone verlassen wird und in welcher Stadt Stefan sein Secondment absolvieren möchte. Stefans Job interessiert dich und du möchtest mehr darüber erfahren? Hier geht's zur Stellenanzeige: ► https://t1p.de/xdn10 Wir freuen uns auf deine Bewerbung!

Tax departments at multinational companies are scrambling to keep up with the Trump administration's tariff announcements as the updates pile in day to day and sudden shifts complicate transfer pricing calculations. Tariffs raise companies' costs, and those can't always be passed on to consumers—meaning businesses have to choose where to allocate the costs in their supply chains. While the importing entity pays the tariffs, the company can adjust the transfer price to pass that cost to other, related entities. That can present opportunities to reduce the impact of tariffs—but also may lead to risks of audits from tax and customs agencies. And with so much unknown, it's become hard for companies to find tax certainty, said Summer Austin, partner at Baker McKenzie. Austin and Baker McKenzie partner Jennifer Revis talked to Bloomberg Tax reporter Caleb Harshberger about what the tariffs mean for transfer pricing and how companies should respond. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690

In this episode, panelists provide updates on Canada and the OECD and discuss what the future might hold.  

In this episode, we discuss the transfer pricing considerations in the context of management services.

In this TP Talks Special Edition podcast, David Ledure (Global Financial Transactions Transfer Pricing Leader, PwC Belgium) is joined by Shereen Osman (Financial Services Assurance Director and PwC's Global Islamic Finance practice co-leader, PwC UAE) and Zachary Noteman (PwC's Middle East Financial Transactions TP Leader). They discuss aspects of Islamic financing and its intersection with transfer pricing. They then explore what Islamic (or Sharia) financing entails and its distinguishing characteristics, including examples of financing that meet the criteria. Finally, they discuss the similarities and differences in returns between Islamic and conventional financing, the benchmarking of Islamic financial transactions for transfer pricing purposes, and the broader societal contributions of Islamic finance through Zakat, a wealth-based charitable contribution, and its implications for transfer pricing.Support the show

Brazilian taxpayers and practitioners continue to clamor for more guidance on the country's new transfer pricing regime implemented last year. The country switched from a mathematical model to an arm's-length principle for transfer pricing last year, bringing it in line with global standards. That pivot left a lot of questions for the Receita Federal, the country's revenue authority, to answer through guidance, and it's been working to issue rules ever since. Most recently, Brazil issued instructions requiring extensive reporting and documentation of transactions involving commodities and how companies calculate their transfer pricing positions. Transfer pricing involves valuation of transactions between entities within a corporate group. Intragroup transactions must be conducted at arm's length—priced similarly to transactions between unrelated companies. The country's auditors are gearing up to enforce Brazil's new rules, sparking some concerns among practitioners that many new auditors will be learning on the job and that these early examinations won't go smoothly. RSM US senior tax manager Nina Baumbach spoke with reporter Caleb Harshberger about the changes and what they mean for companies. She said companies need more guidance and clarity from the government on intangibles and other topics. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Welcome to the latest episode of Beyond the Numbers by Weaver, hosted by Vince Houk, the Partner-in-Charge of International Tax Services at Weaver. Joining him is the adept Josh Finfrock, Director of Transfer Pricing Services at Weaver, ready to decode the intricate relationship between the IC Disc regime and transfer pricing.Key Points:Transfer pricing is not just a compliance aspect, but can be strategic and provide opportunities for tax savings and efficient cash management.A strategic review of a company's global structure can help identify transfer pricing opportunities and range of outcomes in different locations.Weaver can assist companies in identifying transfer pricing opportunities and operating their business more efficiently, while also mitigating risks through a holistic view of the company's operations.At the heart of this discussion is the Intercompany Pricing Agreement, commonly referred to as the IC Disc regime, which promises significant tax savings for exporters. But how can one optimize these benefits? And where does transfer pricing fit into this puzzle?IC discs are export incentives that provider for permanent tax savings and can benefit all entities from corporations to partnerships. However, the way most companies have IC discs set up, transfer pricing is often not required and utilized, but companies can benefit tremendously when they do decide to use transfer pricing. "We can take segment by segment, different expenses, and find categories that we think may be over allocating expense to that segment, which is increasing the benefit of the disc when you can find those opportunities," Finfrock explained.Subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.©2023

On the latest episode of Beyond the Numbers by Weaver, host Vince Houk, Partner-in-Charge, International Tax Services at Weaver, delves deep into the world of strategic transfer pricing and how businesses can use it to their advantage. Joining him is Josh Finfrock, Director, Transfer Pricing Services at Weaver, an expert with a wealth of knowledge in the field. Key Points: One overlooked opportunity in utilizing FDII is to analyze the expense allocation with GNA expenses and allocate accordingly based on genuine benefit, which can help derive a better benefit. Other opportunities include looking at services provided by the U.S. company that may qualify for the FDII benefit and reviewing the IP structure to potentially move IP into the U.S. The U.S. provides a jurisdiction with substance, a good treaty network, and potentially lower tax rates compared to other countries, making it an attractive option for IP ownership and maintaining key operations. How can firms shift their perception and utilize transfer pricing as an asset rather than a burden? And what lies beyond the surface of transfer pricing, and how can businesses harness its potential to enhance their global operations? Clients often overlook how strategic transfer pricing can be and how it can be a tax saver and assist in cash management efficiency. For example, there is cash repatriation leakage that can be planned around with transfer pricing. Rate differentials between countries can be another challenge that transfer pricing adjustments can help save. Finfrock stated, “If we can do a strategic transfer pricing review with the company, we're going to come in and be able to look at, get a holistic view of the company, the global structure, understand where all the moving pieces are. That way, then we really know where those levers are, what our range of outcomes can be in different places, and then we can find those opportunities for savings.” Subscribe and listen to future episodes of Beyond the Numbers on Apple Podcasts or Spotify. ©2023

In this TP Talks episode, Kristina Novak is joined by Kristin Bohl to discuss the transfer pricing aspects of the current customs and trade environment.Support the show

With investment in intangible assets by multinational entities continuing to grow throughout the world, KPMG Australia's Peter Oliver - along with Jeremy Capes, Jennifer Ta, James Alsop and Rosie El Khoury - explore how companies are meeting their tax obligations when it comes to intangibles, such as software royalties, what cross-border issues are arising and current level of activity and guidance coming from tax administrators. For further updates, please register for KPMG Tax Now. 

In this TP Talks episode, Kristina Novak sits down with Steven Cawdron and Zachary Noteman to discuss the evolving transfer pricing environment in the Middle East.Support the show

In this episode, panelists discuss Loper Bright Enterprises v. Raimondo and provide an OECD update.

In this TP Talks episode, Kristina Novak sits down with Marcelo Vieira to discuss the progress of Brazil's overhaul of its transfer pricing regime.Support the show

Debt capacity In this TP Talks Special Edition podcast, David Ledure (Global Financial Transactions Transfer Pricing Leader, PwC Belgium), Stan Goldenberg (M&A Transfer Pricing Director, PwC US), Andrew Cotterill (Transfer Pricing Senior Manager, PwC UK), and Ben Pietersen (Eurasian Transfer Pricing Director, PwC Georgia) discuss debt capacity from a transfer pricing perspective, exploring the principles and practices of the US, UK, Georgia, and other Eurasian countries. The discussion underscores the nuanced and fact-specific nature of debt capacity analysis across different jurisdictions, with varying implications for taxpayers.Support the show

Discover the critical intersection between #transferpricing and #customs #valuation , and how to navigate this complex landscape for optimal compliance. Join experts Carl and Jay as they share insights on aligning your pricing strategies, minimizing risks, and maximizing efficiency across your #globaloperations . Don't miss this essential #guide to optimizing your transfer pricing and customs valuation processes. Click to learn more!   Resources: Aprio - https://www.aprio.com/ Jay Cho - https://www.linkedin.com/in/jay-cho/ Carl Budenski - https://www.linkedin.com/in/carl-budenski/   Connect with Simply Trade Podcast: - Subscribe: https://www.youtube.com/channel/UCdmyGU5foKm4aFlpo7Oms4g?sub_confirmation=1 - LinkedIn: https://www.linkedin.com/showcase/simply-trade-podcast/ - Twitter: https://twitter.com/SimplyTradePod - Website: https://globaltrainingcenter.com/simply-trade-podcast/   Contact Us/ Suggest Topics Contact SimplyTrade@GlobalTrainingCenter.com   Credits: Host: Andy Shiles: https://www.linkedin.com/in/andyshiles/ Host/Producer: Lalo Solorzano: https://www.linkedin.com/in/lalosolorzano/ Co-Producer/Editor: Mara Marquez: https://www.linkedin.com/in/maramarquez85/

In our latest Tax Talk, Global tax team provides an update on both Pillars I and II and BEPS, and provides examples of practical approaches to preparing for and managing a tax audit, including US and European considerations. In addition, this program includes an overview of transfer pricing audit trends in the US and Europe, lessons learned, as well as a discussion on alternative dispute resolution mechanisms.

Purchase the Climate Finance Course at www.climatefinancecourse.com Robert G. Eccles is a leading ESG integration academic focusing on sustainable corporate and investment strategies. His work focuses on how capital markets can contribute to ensuring a sustainable society for generations to come. Dr. Eccles is a Visiting Professor of Management Practice at the Said Business School, University of Oxford. He was a Tenured Professor at Harvard Business School. Eccles has also been a Visiting Lecturer at the Massachusetts Institute of Technology, Sloan School of Management, and a Berkeley Social Impact Fellow at the Haas School of Business, University of California, Berkeley. He was the founding chairman of the Sustainability Accounting Standards Board (SASB) and one of the founders of the International Integrated Reporting Council (IIRC). He is also the first Chair of KKR's “Sustainability Expert Advisory Council” and was an Eminent Academic Advisor to the Boston Consulting Group on Global ESG Integration and Reporting. He is notably a prolific commentator on Forbes, having published over 150 articles. Dr. Eccles received an S.B. in Mathematics and an S.B. in Humanities and Science from the Massachusetts Institute of Technology and an A.M. and Ph.D. in Sociology from Harvard University. Topics discussed: Dr. Eccles's early intellectual evolution was from studying mathematics and humanities at MIT to doing a Ph.D. in sociology focusing on the construction industry. How writing books on Transfer Pricing and Investment Banking Dealmaking earned Dr. Eccles tenureship at Harvard Business School. Transition from Academia to Consulting in Disclosure and Performance in the 1990s 1991: The Performance Measurement Manifesto 1992: Creating a Comprehensive System to Measure Performance 1993: Consulting: Has the Solution Become Part of the Problem? 1995: Improving the Corporate Disclosure Process Book Publications on Value & Integrated Reporting in the 2000s: 2001: The Value Reporting Revolution: Moving beyond the earnings game 2002: Building Public Trust: the Future of Corporate Reporting 2010: One Report: Integrated Reporting for a Sustainable Strategy Founding Leadership Journey with IIRC (International Integrated Reporting Council) and SASB (Sustainability Accounting Standards Board). Post-SASB Book Publication: The Integrated Reporting Movement: Meaning, Momentum, Motives, and Materiality (2014). Importance of Materiality: Materiality in Corporate Governance: The Statement of Significant Audiences and Materiality (2016). A Preliminary Analysis of SASB Reporting: Disclosure Topics, Financial Relevance, and the Financial Intensity of ESG Materiality (2020). How material is a material issue? Stock returns and the financial relevance and financial intensity of ESG materiality (2020). Thoughts on IIRC & SASB Consolidations to ISSB-IFRS A Debate At The Oxford Union: Should FASB And IASB Set Standards For Nonfinancial Information? (2018 - Forbes; SSRN).  The International Sustainability Standards Board As An Ideological Rorschach Test (2021 - Forbes). Historical Origins of ESG and Sustainability Reporting Exploring social origins in the construction of ESG measures (2018). The Social Origins of ESG: An Analysis of Innovest and KLD (2020) From “Who Cares Wins” To Pernicious Progressivism: 18 Years Of ESG (2022) Political Backlash and Regulation on ESG: Some Constructive Feedback To 23 Red States On Their Anti-ESG Campaigns (August 2023). A Color Spectrum Analysis Of The Redness Of 23 Red States (July 2023). Written Statement for the House Financial Services Committee June 12, 2023 Hearing entitled "Protecting Investor Interests: Examining Environmental and Social Policy in Financial Regulation" Anti-ESG Fund Analysis: Drilling Into DRLL's Top 10 Holdings: A Woke Analysis (2022) Global SDG Funding Gap: How to close the $2.5 trillion annual funding gap (Jan 2018).  $2.5trn in need is not $2.5trn in opportunities (September 2023). Advice to Future ESG and Sustainable Finance Academics, Practitioners, Financiers, and Investors. Note: This podcast is for informational purposes only and should not be considered as investment advice. The interview took place on 26 September 2023.

This TP Talks episode addresses Amount B of Pillar One, focusing on the OECD's February 2024 final report and subsequent June guidance.1Support the show

In this episode, panelists discuss how implicit support relates to the arm's-length principle.

In this episode of The Brainy Business podcast, host Melina Palmer welcomes Christopher Wong Michelson, co-author of Is Your Work Worth It?. Christopher, a philosopher with 25 years of experience advising business leaders, explores the profound questions surrounding the meaning and value of work. With a PhD in philosophical ethics and aesthetics, Christopher has held significant roles at PwC and academic positions at the Wharton School and NYU's Stern School of Business. His extensive background provides a rich foundation for exploring how work contributes to our sense of purpose and identity. Throughout the episode, Christopher shares insights from his journey, including his transition from academia to management consulting, and the experiences that shaped his understanding of meaningful work. He discusses the impact of 9/11 on people's perceptions of work and life, and how the pandemic has similarly prompted many to reassess their professional and personal priorities. The conversation touches on the philosophical aspects of work, the balance between job, career, and calling, and the inherent trade-offs in pursuing meaningful work. In this episode, you will learn: The philosophical questions that drive our understanding of work's meaning. How significant events like 9/11 and the pandemic shape our perceptions of work. The balance between job, career, and calling, and their impact on our lives. The concept of "transfer pricing" in personal and professional life. Strategies for finding balance and fulfillment in your work. Show Notes: 00:00:00 - Introduction, Melina introduces Christopher Wong Michelson, co-author of Is Your Work Worth It? and sets the stage for a discussion on the philosophical aspects of work. 00:02:30 - Christopher's Background and Journey Christopher shares his journey from academia to management consulting and his experiences at PwC and various academic institutions. 00:10:45 - The Impact of 9/11 and the Pandemic Discussion on how significant events like 9/11 and the pandemic have prompted people to reassess their work and life priorities. 00:18:32 - The Question of Work's Worth Christopher delves into the central question of the book, Is Your Work Worth It? and the importance of finding meaning in work. 00:25:54 - Job, Career, and Calling Exploration of the different orientations towards work and the trade-offs involved in pursuing a calling. 00:34:06 - Transfer Pricing in Personal and Professional Life Christopher explains the concept of transfer pricing and how it can be applied to balance personal and professional investments. 00:40:22 - Finding Balance and Fulfillment Strategies for incorporating meaningful activities into your work and life to achieve balance and fulfillment. 00:46:15 - Advice for Organizational Leaders Tips for leaders on how to create meaningful work environments that encourage employees to find value and purpose in their roles. 00:50:30 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Connect with Christopher: LinkedIn Christopher's Website Learn and Support The Brainy Business: Check out and get your copies of Melina's Books.  Get the Books Mentioned on (or related to) this Episode: Good Habits, Bad Habits, by Wendy Wood Indistractable, by Nir Eyal How to Change, by Katy Milkman Happier Hour, by Cassie Holmes Is Your Work Worth It?, by Christopher Wong Michaelson and Jennifer Tosti-Kharas Top Recommended Next Episode: Nick Hobson Interview (ep 382) Already Heard That One? Try These:  Habits (ep 256) Status Quo Bias (ep 376) Tapping into the Power of Habit (ep 368) Wendy Wood Interview (ep 428) Sludge (ep 384) Other Important Links:  Brainy Bites - Melina's LinkedIn Newsletter

This TP Talks episode addresses the evolution of country-by-country reporting (CbCR) as it relates to the OECD's Pillar Two Transitional CbCR Safe Harbor and Public CbCR.Support the Show.

This TP Talks Special Edition podcast focuses on recent legislative developments and audit trends in Germany, Australia, and Canada.Support the Show.

The “GILTI Conscience” podcast team, led by partners David Farhat and Nate Carden, hosted Clark Armitage of Caplin & Drysdale for an in-depth conversation on the various methods for resolving cross-border transfer pricing disputes. Associates Eman Cuyler and Stefane Victor joined the discussion as well.

This TP Talks episode features a discussion of the recent IRS administrative guidance  regarding implicit support and its impact on the pricing of intercompany loan transactions, both from a US and global perspective.Support the show

Beyond Controversy: The collaborative landscape of transfer pricing disputes. In the complex world of transfer pricing, setting the right price for intercompany transactions is both a science and a subjective process. But how does this play out in the face of international disputes? Where do treaty-based resolutions like the Mutual Agreement Procedure (MAP) and the Advance Pricing Agreement (APA) fit into this puzzle? And just how pivotal are these tools in providing certainty and preventing double taxation? Join our host, Brittany Hardin Tanguay, as she navigates this fascinating discussion with Lillie Sullivan (Senior Manager, KPMG US: Washington National Tax - Controversy and Dispute Resolution), and Joshua McConkey (Managing Director, KPMG US: Washington National Tax Controversy and Dispute Resolution).

This Weaver: Beyond the Numbers episode explores the evolving landscape of German transfer pricing regulations. Insights from Josh Finfrock, director, Transfer Pricing Services, at Weaver, and Michael Kern from KBHT Germany, discuss critical changes and the implications for companies operating within Germany. As members of Allinial Global, Weaver and KBHT bring extensive knowledge and resources assisting businesses in navigating the complexities of cross-border activities efficiently. Key Points: • Recent changes in German transfer pricing regulations, including the implementation of the DAC7 directive, significantly impact tax audits.• The new regulations affect the preparation and filing of transfer pricing documentation, introducing stricter deadlines and broader requirements.• These changes influence U.S. companies operating in Germany and further emphasize the importance of proactive planning. The episode offers a detailed overview of the modifications to German transfer pricing rules, focusing on the DAC7 directive's role in promoting tax transparency and modernizing external tax audits. These changes are poised to substantially affect future tax audits, necessitating swift adaptation by companies to avoid potential penalties. "The preparation and filing obligation, especially the deadline, is reduced to only 30 days,” Kern said. “It can be requested at any time, not only in the course of an audit or an APA procedure, but at any time.” This highlights the urgency for companies to maintain current transfer pricing documentation and reflects the increased scrutiny and accelerated timelines introduced by the new regulations. Subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.©2024

Tax Notes contributing editor Ryan Finley discusses the latest developments in three transfer pricing cases — Medtronic, 3M, and Abbott Labs — and their implications for the future. For additional coverage, read these articles in Tax Notes:Business Groups Urge Eighth Circuit to Overturn Tax Court in 3MMedtronic Budges on CUT Method in Round 2 at Eighth CircuitAbbott Labs Revives Fight Over Stock Options in Transfer PricingBlocked Brazilian Income Can't Be Taxed in U.S., 3M Brief Argues3M Challenges Blocked Income Regs at Eighth CircuitGovernment Resumes Defense of Its Transfer Pricing for MedtronicCoca-Cola's Brazilian Income Not Blocked, U.S. Tax Court SaysIn our “Editors' Corner” segment, Edith Brashares, former director in the Treasury Office of Tax Analysis, chats about her coauthored Tax Notes piece, “Is the Economic Analysis Section of Regs Worth the Trouble?” Follow us on Twitter:David Stewart: @TaxStewTax Notes: @TaxNotes**This episode is sponsored by the University of California Irvine School of Law Graduate Tax Program. For more information, visit law.uci.edu/gradtax.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner: Jordan ParrishAudio Engineers: Jordan Parrish, Peyton RhodesGuest Relations: Alexis Hart

Cupid's arrow has struck the heart of many curious people, leading them to transfer pricing. Prepare to be smitten as we delve into the hearts of multiple transfer pricing professionals, the matchmakers of the corporate world, who work to harmonize the rhythm of regulatory compliance with the melody of business objectives in a symphony of economic strategy. Whether it was love at first sight or a slow-burning passion, their stories are a testament to the dynamic, challenging, and rewarding nature of a career in transfer pricing. So, grab a box of chocolates and join us as we pen a love letter to transfer pricing, and perhaps inspire the next generation of romantics in this crucial and captivating sector of the global economy. In this very special episode of Exploring Transfer Pricing, our host Brittany Hardin Tanguay revisits some of her heartfelt conversations with previous guests of the program, including Robin Archer (Director, KPMG UK), Enrique Martin (Principal, KPMG US), Sayantani Ghose (Principal, KPMG US), Diana Shkodina (Principal, KPMG US), Nick Stavrakis (Managing Director, KPMG US), Brad Parker (Principal, KPMG US), and David Unger (Managing Director, KPMG US).

This Day in Legal History: The Permanent Court of Arbitration is EstablishedOn this day, February 6, 1900, a pivotal moment in the realm of international law unfolded with the establishment of the Permanent Court of Arbitration (PCA), marking the inception of the first international tribunal dedicated to resolving disputes among nations. This historic event was precipitated by the ratification of the 1899 Convention for the Pacific Settlement of International Disputes, setting a cornerstone in The Hague, Netherlands. The PCA's creation underscored a global aspiration towards peaceful resolution of conflicts, departing from the traditional reliance on military force and diplomatic pressure.In the years that followed, the PCA's foundational principles and structure were further refined and strengthened by the 1907 Convention for the Pacific Settlement of International Disputes. These conventions collectively laid down the legal framework and procedural norms for international arbitration that continue to guide the PCA's operations.Now, more than a century later, the PCA stands as a testament to the enduring commitment of the international community to the principles of justice, peace, and cooperation. Housed in the iconic Peace Palace in The Hague, the PCA has grown to include 109 member countries, each pledging to resolve their disputes through arbitration rather than warfare.Throughout its history, the PCA has played a crucial role in mediating conflicts that span a wide range of issues, from territorial disputes to environmental concerns, and from maritime law to international investment. Its proceedings and rulings have not only resolved conflicts but have also contributed significantly to the development of international law.Today, as we commemorate the founding of the PCA, it serves as a reminder of the power of diplomacy and the potential for international law to foster a more peaceful and just world. The legacy of the PCA continues to influence contemporary legal thought and practice, reinforcing the importance of dialogue, understanding, and legal arbitration in the international arena.The federal government has notably refrained from commenting on Donald Trump's legal battle to remain on Colorado's 2024 primary ballot, despite previously engaging in Supreme Court cases concerning major political and legal issues. This silence, particularly from the Solicitor General's Office, seems to reflect a cautious approach to avoid involvement in disputes directly affecting presidential election outcomes. Trump's legal team is set to argue that the Colorado Supreme Court incorrectly ruled him disqualified from office due to his actions during the January 6, 2021, Capitol riot, a decision with significant implications for his eligibility in upcoming primaries.Historically, the federal government's stance in similar high-stakes election cases, such as Bush v. Gore, has been to abstain from taking a position, suggesting a consistent strategy to steer clear of cases with direct political ramifications. Observers and legal experts speculate that the decision to remain silent in Trump's case, like past instances, is driven by the political sensitivity of the matter and the desire to maintain the perception of impartiality in election-related legal challenges. The Solicitor General's role as an educator and policy explainer to the court, coupled with their selective involvement in cases, highlights the nuanced considerations behind the government's engagement in Supreme Court litigation.This careful positioning underscores the complexities of navigating legal disputes that intersect with political dynamics and the constitutional implications of election law. The absence of federal input in Trump's case reflects a broader trend of cautious engagement by the Solicitor General in politically charged cases, emphasizing the delicate balance between legal principles and political considerations in the administration's approach to Supreme Court litigation.US Silence on Trump Ballot Battle Signals Caution Over ElectionThe recent licensing dispute between Universal Music Group and TikTok Inc. highlights the growing complexities introduced by AI-generated music in the music and social media industries. Universal's decision to remove its artists' music from TikTok, citing concerns over AI-generated recordings diluting royalties for human artists, marks a significant standoff that could reshape future negotiations and the use of AI in content creation. This conflict reflects broader industry challenges with AI, mirroring disputes in other creative sectors over copyright infringement and the impact of technology on traditional revenue models.Both Universal and TikTok benefit from their partnership, with TikTok serving as a promotional platform for Universal's artists and music. However, the disagreement over AI-generated music's role and its potential to reduce reliance on licensed content brings to light the strategic and financial implications for both parties. Legal experts and industry observers are closely watching the dispute, recognizing its potential to set precedents for how AI-generated content is managed and compensated across platforms.The public nature of this dispute is unusual in an industry where such negotiations often occur behind closed doors, indicating the high stakes involved. Artists signed with Universal, such as Noah Kahan and Yungblud, have voiced their perspectives, highlighting the personal and professional impacts of the standoff. The debate extends to songwriters and music publishers, who advocate for fair compensation and protections against the devaluation of human creativity by AI.This standoff between Universal and TikTok underscores the ongoing negotiation between leveraging new technologies for innovation and ensuring artists and creators are fairly compensated. As AI continues to evolve, its integration into creative industries will necessitate careful consideration of legal, ethical, and economic factors to balance innovation with the rights and livelihoods of human creators.AI Fight Complicates TikTok, Universal Music Licensing StandoffThe 9th U.S. Circuit Court of Appeals has ruled that California can continue enforcing its law that mandates background checks for ammunition purchases, temporarily suspending a previous decision by U.S. District Judge Roger Benitez that declared the law unconstitutional. This decision came from a divided panel, with a 2-1 vote in favor of maintaining the law while the state appeals Judge Benitez's ruling, which he argued violated the Second Amendment right to bear arms. Judges Richard Clifton and Holly Thomas, both Democratic appointees, supported the stay, whereas U.S. Circuit Judge Consuelo Callahan, a Republican appointee, dissented.California Attorney General Rob Bonta celebrated the decision, highlighting the importance of the state's ammunition laws in saving lives and ensuring they remain in effect during the ongoing legal defense. The law, which was challenged by individuals including Olympic gold medalist shooter Kim Rhode and the California Rifle & Pistol Association, requires gun owners to undergo background checks to buy ammunition and pay for a four-year ammunition permit. This measure, initially approved by California voters in 2016 and later amended by legislators to require background checks for each ammunition purchase starting in 2019, faces continued opposition from gun rights advocates.The legal battle reflects wider national debates on gun control, especially in the wake of the Supreme Court's June 2022 ruling in New York State Rifle & Pistol Association v. Bruen, which recognized an individual's right to carry a handgun in public for self-defense and set a new standard for evaluating firearm laws. Judge Benitez's rejection of California's ammunition background check law cited a lack of historical precedent for such regulations, a point of contention that underscores the ongoing struggle between state efforts to regulate firearms and ammunition and the constitutional protections of the Second Amendment.California ammunition background check law can remain in effect, court rules | ReutersThe U.S. Securities and Exchange Commission (SEC) is poised to implement a new rule requiring proprietary traders and firms frequently dealing in U.S. government bonds to register as broker-dealers, introducing them to a regime of enhanced scrutiny. This initiative is part of a comprehensive strategy aimed at addressing structural deficiencies in the $26 trillion Treasury market, which have been identified as contributing to liquidity issues. By mandating registration for entities trading over $25 billion in Treasuries across a majority of the past six months, the rule intends to impose capital, liquidity, and other regulatory requirements on a sector that has become increasingly vital for market liquidity.Scheduled for a vote by the SEC's commissioners, the rule targets up to 46 proprietary trading firms, seeking to integrate them more closely into the regulatory framework governing Treasury market dealers. Critics, including prominent investors and industry groups, have expressed concerns that the rule's broad criteria may inadvertently ensnare corporations, insurers, and pension funds, potentially exacerbating liquidity challenges rather than alleviating them. Despite these criticisms and calls for moderation in the rule's application, the SEC has highlighted the value of industry feedback without committing to specific adjustments.The adoption of this rule marks a significant step in what is described as the most substantial renovation of the Treasury market in decades, with the potential to alter trading behaviors and the operational landscape for a wide range of market participants. The outcome of the final rule's wording remains closely watched, as it could dictate a pivotal shift in how entities engage with the Treasury market, balancing the push for transparency and stability against the risk of unintended consequences on market liquidity.In other words, in plain English, this new rule is a big deal because it's part of the biggest changes to the Treasury market we've seen in years. It could really change how people trade and work within this market. Everyone is keeping an eye on the exact language of the rule because it will play a key role in shaping the future of trading in government securities. The goal is to make trading more open and stable, but there's a bit of worry about whether this might make it harder to buy and sell quickly, which could shake things up for everyone involved.US SEC set to adopt Treasury market dealer rule as part of market overhaul | ReutersIn my column this week, I explore the transformative potential of artificial intelligence (AI) and machine learning in enhancing transfer pricing tax transparency. By way of very brief background, transfer pricing refers to the pricing of goods, services, and intellectual property when these are exchanged between divisions, subsidiaries, or affiliated companies within the same multinational enterprise. For example, if the Coca-Cola Company owns a subsidiary in Country A that develops the secret recipe for Coca-Cola and another subsidiary in Country B that manufactures the drink, the price set for transferring the recipe (an intangible asset) from Country A to Country B is subject to transfer pricing regulations. This practice is crucial for determining the income and expenses of each entity, thereby affecting the taxable income reported in different countries with different tax rates. Transfer pricing is closely regulated by tax authorities worldwide to prevent tax avoidance, ensuring that transactions between related parties are conducted at arm's length—that is, under conditions and prices that would apply if the entities were unrelated. The complexity of transfer pricing lies in its need for meticulous documentation and compliance with international guidelines, such as those set by the Organisation for Economic Co-operation and Development (OECD), to justify the prices set for these internal transactions. In other words, using the above Coca-Cola example, ideally acting as Coke I would want to shift income from a high-tax country to a lower-tax country. One way to do that would be to “charge” the subsidiary that manufactures the soda a very high cost for the recipe, assuming I want to move income out of the manufacturing country by way of expensing the cost of the recipe. There are myriad issues to be concerned about when related entities are setting prices for things like intangible assets which are very hard to place a real world market value on–there is always the risk of shenanigans. Transfer pricing, a critical yet contentious aspect of global taxation, is prone to manipulation as multinationals navigate the complexities of international tax law. I argue for the adoption of an open-source, public-facing AI model that can offer consistent and reliable valuations, providing a safe harbor for compliant taxpayers.AI's prowess lies in its ability to simulate market conditions and assign value to transfers between controlled entities, including intangible assets. This technology promises to bridge the gap where no market repository exists, offering a novel approach to assessing arm's-length transactions. The significance of precise valuation is underscored in transfer pricing, where the crux of compliance hinges on mutual understanding between taxpayers and regulators regarding valuation factors.By analyzing vast datasets and applying sophisticated algorithms, AI can deliver precise, consistent valuations with reduced administrative burdens. Such an approach not only fosters transparency but also mitigates the risk of non-compliance and associated penalties. As I emphasize, this is a critical juncture for regulators to incentivize adoption through the provision of benefits, alongside the traditional enforcement measures.The complexity of international transfer pricing regulations has escalated following initiatives like the OECD's base erosion and profit shifting (BEPS) project. This backdrop makes the case for AI even stronger, as it aligns with efforts to combat tax avoidance and ensure that income correlates with the economic activities generating it. AI models, if properly developed and utilized, could revolutionize the practice by making compliance more manageable and equitable, particularly for developing countries.Looking ahead, the integration of AI into the tax domain appears inevitable. The challenge lies in who will dominate the development and application of these models. With strategic investment, AI tools could be made universally accessible, dramatically reducing compliance costs and promoting tax justice. This vision for the future leverages AI to encourage transparent compliance, potentially reshaping international trade and taxation for the better.Using AI Would Provide Greater Transfer Pricing Tax Transparency Get full access to Minimum Competence - Daily Legal News Podcast at www.minimumcomp.com/subscribe

Charting out the OECD's 2022 Mutual Agreement Procedure (MAP) Statistics to appreciate how effective MAP is in resolving transfer pricing disputes. The OECD released the 2022 Mutual Agreement Procedure (MAP) Statistics and announced its much heralded MAP Awards, the Transfer Pricing equivalent of the Oscars. When a multinational is subject to a transfer pricing adjustment, MAP is a process the taxpayer can invoke to avoid double taxation. The MAP statistics provide multinationals with important insights into how well MAP relationships are working. Our host Brittany Hardin Tanguay is joined by Phil Roper, a Partner from KPMG UK, and Thomas Bettge, a Senior Manager in Washington National Tax, to discuss their impressions from the latest release of MAP Statistics.

Our host Brittany Hardin Tanguay is joined by Maggie Fritz, a Tax Principal and the global banking leader for transfer pricing, and Brie Siciliano, a Managing Director for Tax specializing in financial services. Together, they'll unravel the complexities that the banking industry encounters when enacting transfer pricing.

In this TP Talks episode, Kristina Novak (Principal in PwC's US National Tax Services Transfer Pricing Practice), Jessica Yin (Transfer Pricing Partner, PwC Shanghai), Rong Zhen (Corporate Tax and Forex Partner, PwC Shanghai), and Nancy Chen (Transfer Pricing Senior Manager, PwC Shanghai) discuss why many MNCs operating in China have been more attentive to year-end transfer pricing adjustments (TPAs), what TPAs Chinese subsidiaries might need to undertake, the challenges cross-border TPAs present in China, and options available for MNCs to implement year-end adjustments. The speakers also address indirect tax implications for upward TPAs, and how taxpayers can respond to a potential inquiry.Support the show

This TP Talks episode features a discussion of the transfer pricing developments in India and China.Support the show

2023 has been a rollercoaster in the world of international tax and transfer pricing - and 2024 looks to be more of the same. As 2023 draws to a close, we delve into the key tax initiatives that have shaped the transfer pricing landscape over the past year. This episode navigates through topics ranging from the OECD's Pillar One and Pillar Two, to the adoption of the OECD Guidelines by Brazil and the impact of economic uncertainty and evolving business models on transfer pricing. Our host Brittany Hardin Tanguay is joined by Jessie Coleman, a Principal in Washington National Tax, to discuss highlights from the previous year, as well as the challenges and opportunities that lie ahead in the realm of transfer pricing.

While tax insurance can be used in a variety of contexts, from M&A deals to regular tax planning scenarios, it is also relevant when it comes to transfer pricing. Recent developments have expanded the scope of tax insurance to cover multiple years of transfer pricing in returns in M&A deals, and the potential of seeing more transfer pricing insurance in the future is a strong possibility.On this episode of the “GILTI Conscience” podcast, hosts Nate Carden and David Farhat are joined by Skadden's Eman Cuyler and Stefane Victor and Yoav Shans of McGill and Partners to discuss the ins and outs of tax insurance including how it relates to transfer pricing, how a claim is initiated and insuring a position.

Hammering out transfer pricing challenges in the building, construction, and real estate industry. Building on our Transfer Pricing Industries Series, we have constructed an episode on the specialized transfer pricing issues faced by the building, construction, and real estate, BCRE, industry. The uniqueness of the underlying assets influence how transactions are valued, and how to price the associated transactions around it. With a large diversity in the types of transactions and assets, transfer pricing practitioners must rely more heavily on sound economic principles. Our host Brittany Hardin Tanguay is joined by Weston Krider, a KPMG Transfer Pricing Managing Director based in Los Angeles and rejoined by Sharon Liu, a KPMG Transfer Pricing Principal in Economic and Valuation Services to discuss some of the key issues of transfer pricing within the building and construction industry.