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Taxand Global Academy hosted another edition of the Virtual Training Tuesdays focused on the transfer pricing challenges arising from business restructurings, bringing together over 112 participants from 34 countries. The session, led by experts in the field, Fabien Billiaert, Partner, Arsene – Taxand France and Gaspar Lopes Dias, Partner, STI Taxand – Taxand Cyprus, provided participants with key insights into transfer pricing principles, risks and compliance in restructurings.
Key Takeaways
Understanding Business Restructuring and Transfer Pricing Challenges
Fabien introduced the importance of understanding the restructuring process, emphasizing the need to determine compensable elements and assess the impact on the overall organisation. Key considerations include:
-Evaluating pre- and post-restructuring transfer pricing policies
-Understanding the role of involved entities and affected transactions
-Analyzing impacts on permanent establishments
-Ensuring comprehensive documentation to support the transfer pricing approach
Gaspar expanded on these principles, referencing Chapter 9 of the OECD Guidelines, which highlights the centralization, decentralization, or transfer of intangible assets.
Key Risks and Considerations in Business Restructurings
Gaspar emphasized the importance of assessing restructuring decisions from multiple perspectives, particularly from the standpoint of each taxpayer. Key risks include:
-Profit allocation inefficiencies
-Challenges in relocating decision-making functions
-Evaluating options realistically available (ORAs) to taxpayers before restructuring
-Considering the role of synergies and their tax implications
Case Studies: Learning from Global Tax Disputes
Several real-world tax cases were discussed to illustrate how courts evaluate business restructurings:
As businesses continue to evolve and adapt to market changes, understanding the complexities of transfer pricing in restructuring remains crucial. We look forward to further exploring these topics in future training sessions!
Upcoming Taxand Virtual Training Tuesdays Sessions:
Session recording + slide deck available on Taxand’s Hub:
Documents > 2. Taxand Global Academy > Transfer Pricing > Business Restructuring
Any questions? Please contact julia.nazzareno@taxand.com
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