Taxand at the ITR Third Annual Asia TP Forum
The ITR Asia TP Forum returned on 2 & 3 December for its third year in Singapore. The Forum allowed for open discussion of the latest transfer pricing issues and connected attendees with leading transfer pricing professionals to share invaluable experiences in the company of their peers.
With timely debates on the future of TP policy, through the OECD BEPS project and developments on country-by-country reporting, as well as providing an in-depth look at highly topical case studies, the Forum provided taxpayers, in-house tax executives and private practitioners with up-to-the minute global transfer pricing information and debate.
Delegates heard from global and regional heads of tax from across the globe, officials from tax administrations and global organisations and experienced transfer pricing advisers, who provided authoritative insights and advice on transfer pricing policy in Asia and beyond.
Key pointers from the conference
- BEPS for MNCS: The OECD Action Plan offers the opportunity for effective tax management. Look at how your tax model affects your business: can old structures be replaced by new TP models and used to the advantage of the business?
- Country-by-country reporting: MNCs will soon be expected to report on all entities in all jurisdictions, with varying reporting deadlines. Be proactive and start acting immediately: begin working on your Master File now with a view to drill down to Local Files next
- The Real Deal: MNCs should be aware of the actual activities of their business rather than what is vaguely captured in documentation. Conduct full investigations into the activities of your company in order to report on actual, rather than perceived, operations of the organisation
- TP documentation: BEPS Action 13 is aimed at re-examining TP documentation with MNCs providing even more information to promote transparency. Refine information you share with tax authorities to allow for full risk assessments and ensure information is reliable to avoid dispute
- Handling TP audits: Audit strategies should pre-exist rather than being an afterthought to understand your audit risk. Consider negotiable and non-negotiable issues and self-assess business activity before submitting TP documentation to avoid potential complications
- Permanent establishments: Tax authorities are becoming more aggressive in their stance with PEs. Undertake a risk review of your group model and identify possible areas of exposure. Monitor compliance of internal guidelines by reviewing international travel & relocation of personnel
- Business restructurings: Business restructurings need to be for real purpose and not solely for tax purposes – or reputational, financial and criminal damage are high risks. Ensure that any business restructuring conducted will stand the test of scrutiny
- Location specific advantages: For some industries in specific jurisdictions, LSAs are allowed and permit access to incentives, market premiums, access to growing markets, cost savings etc. Thoroughly investigate instances where LSAs are permitted and analyse both the demand and supply side of any transaction when identifying LSAs
Handling / managing TP audits
TP developments in Australia
Latest TP developments in Asia