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Transfer Pricing Overhaul Seen Altering Internet Taxation

Transfer Pricing Overhaul Seen Altering Internet Taxation
25 Apr 2013

Article first published in Wall Street Journal, WSJ Morning Ledger and WSJ Risk Report

The Organization for Economic Cooperation and Development will likely urge some of the biggest changes to global tax policy in the last two decades when it releases new guidelines about taxing how business gets done on the internet.

Since at least the 1900s, and more formally since the 1950s, corporate tax policy around the world has focused on where companies are physically earning their profits, but today it is often unclear where corporate profit centers are, Olivier Vergniolle, Taxand France, said at Taxand's Global conference in New York this week.

"The whole rules of business have changed, but the tax rules are still the same," Mr. Vergniolle said.

Marc Sanders, Taxand Netherlands, said he is increasingly being asked to help multinational companies move subsidiaries out of island tax havens, like the British Virgin Islands and Caymans, into "more acceptable" locations such as Luxembourg and the Netherlands.

This article is based on The Board's Agenda: Tax Risks Plenary session at the Taxand Global Conference 2013: view the plenary presentation, film and media commentary here.

Access our full suite of Taxand Global Conference 2013 content, including key pointers, films, media commentary, photos and more.

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Taxand's Take

"We have never before seen so many companies keen to pay tax. From a social and political standpoint this is no longer defendable, so they are asking to pay tax - just not too much."

Taxand's Take Author