TEI Comments on Scope of Revisions to OECD Transfer Pricing Guidelines.

Position:Tax Executives Institute, Organisation for Economic Co-operation and Development

On June 19, 2018, TE! filed comments with the Organisation for Economic Co-operation and Development (OECD) regarding the OECD's request for input on possible revisions to Chapters IV and VII of the OECD's transfer pricing guidelines. TEI's comments asked the OECD to minimize the risk of double taxation from cross-border transactions and applicable changes in the tax law, as well as recommending the OECD address the proper approach taxpayers should take to tax adjustments from authorities outside of traditional venues. TEI's comments were submittec under the aegis of its European Direct Tax Committee, whose Chair is Giles Parsons. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of TEI's comments.

On 9 May 2018, the OECD issued two invitations for comment regarding potential future revisions to the OECD's Transfer Pricing Guidelines (the Guidelines). One request asks for comment on the scope of revisions to Chapter IV (administrative approaches) of the Guidelines (the Chapter IV Request). The Chapter IV Request seeks input regarding "how the guidance in Chapter IV could be revised or supplemented to reflect the latest developments on administrative procedures aimed at minimizing transfer pricing disputes and to help resolve them..."

The second request asks for comment on the scope of future revisions to Chapter VII of the Guidelines regarding intra-group services (the Chapter VII Request). The Chapter VII Request notes it is concerned with the "practical application" of the guidance in Chapter VII, rather than its underlying principles.

On behalf of Tax Executives Institute, Inc. (TEI), I am pleased to respond to the OECD's requests for comments.

TEI Background

TEI was founded in 1944 to serve the needs of business tax professionals. Today, the organization has 57 chapters in Europe, North and South America, and Asia. As the preeminent association of in-house tax professionals worldwide, TEI has a significant interest in promoting tax policy, as well as the fair and efficient administration of the tax laws, at all levels of government. Our nearly 7,000 individual members represent over 2,800 of the leading companies in the world. (1)

Comments Regarding the Chapter IV Request

General Comments

TEI commends the OECD for seeking comments regarding the scoping of potential revisions to Chapter IV of the Guidelines. In general, TEI prefers countries adopt a transparent cooperative approach to tax administration, which would help...

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