[PDF] Value Creation Analysis For Transfer Pricing Purposes eBook

Author : Brigitte Baumgartner
Publisher :
Page : pages
File Size : 43,24 MB
Release : 2018
Category :
ISBN :

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The author presents a practical and pragmatic option to perform value creation analysis for transfer pricing purposes. Following Michael Porter's concepts, this article addresses five steps that can help the reader understand and follow an economic analysis to align a transfer pricing policy with a company strategy.

Author : Raffaele Petruzzi
Publisher : Linde Verlag GmbH
Page : 472 pages
File Size : 12,6 MB
Release : 2019-09-02
Category : Law
ISBN : 370941038X

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Value Creation and its effects on Transfer Pricing and tax law Emerging from the OECD/G20 BEPS Project, a new, somewhat fuzzy notion of Value Creation came to permeate not only Transfer Pricing language but also wider allocation rules and anti-abuse provisions in international tax law. The notion of ‘Value Creation’ reframes the interpretation and application of the Arm’s Length Principle (ALP) that is embedded in Articles 7 and 9 of the OECD Model Convention. This new Value Creation notion and approach assist in understanding key enterprise functions while different industry sectors manifest these concepts in various ways. Situating such notions and this approach within the law of tax treaties and analyzing terms of the OECD Transfer Pricing Guidelines alongside their factual context is the aim of this book. Here, law students address Transfer Pricing and Value Creation in sectors as varied as commodities trade, automotive, consumer products, food and beverages, pharmaceutical and life sciences, telecommunications, and the key topic of value creation in a digitalized economy. Our LL.M. students were required to address issues not explored in legal research and to discuss factual topics relevant for Transfer Pricing. All students focused on topics that are new to the international tax debate that keep evolving and on factual matters that often escape legal research.

Author : nupur jalan
Publisher :
Page : 0 pages
File Size : 28,76 MB
Release : 2023
Category :
ISBN :

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The notion of value creation is gaining traction. Even the OECD emphasized aligning profit taxation with economic activity and value creation in the BEPS Actions 8-10 Final Reports. Further, the modern innovative business models in this era of the digital/data economy are giving rise to highly integrated value chains. The question arises as to (i) how to accurately describe these value chains in a manner that makes the value creation and value-capturing of data and digital business transparent for tax purposes; and (ii) how to analyse modern businesses acting in their very own and unique data ecosystems. Therefore, this article discusses the value creation and value chain aspects of data-driven businesses. Considering the above, this article first discusses the background of value chain analysis and its commonly used methods for transfer pricing purposes. Second, it attempts to establish a link between the concept of value creation in the data economy and the evolving data-driven business models and examines possible value chain analyses that might be able to describe these models properly. As an interim conclusion, the authors express the need for an adjustment of the current value chain analysis for digital/data-driven businesses, as it fails to integrate the ways in which the digital data ecosystem works. Therefore, for business models that rely heavily on data and for transactions that are data-intense/data-driven, the authors propose a quantitative approach, whereby the residual profit is attributed not only to profit and investment centres, but also to data function. As it is crucial for such a value chain analysis to appropriately reflect value creation, the authors also propose a framework of digital documentation tools to understand the economic reasoning behind those businesses.Full-text Paper.

Author : N. Jalan
Publisher :
Page : pages
File Size : 31,20 MB
Release : 2021
Category :
ISBN :

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The notion of value creation is gaining traction. Even the OECD emphasized aligning profit taxation with economic activity and value creation in the BEPS Actions 8-10 Final Reports. Further, the modern innovative business models in this era of the digital/data economy are giving rise to highly integrated value chains. The question arises as to (i) how to accurately describe these value chains in a manner that makes the value creation and value-capturing of data and digital business transparent for tax purposes; and (ii) how to analyse modern businesses acting in their very own and unique data ecosystems. Therefore, this article discusses the value creation and value chain aspects of data-driven businesses. Considering the above, this article first discusses the background of value chain analysis and its commonly used methods for transfer pricing purposes. Second, it attempts to establish a link between the concept of value creation in the data economy and the evolving data-driven business models and examines possible value chain analyses that might be able to describe these models properly. As an interim conclusion, the authors express the need for an adjustment of the current value chain analysis for digital/data-driven businesses, as it fails to integrate the ways in which the digital data ecosystem works. Therefore, for business models that rely heavily on data and for transactions that are data-intense/data-driven, the authors propose a quantitative approach, whereby the residual profit is attributed not only to profit and investment centres, but also to data function. As it is crucial for such a value chain analysis to appropriately reflect value creation, the authors also propose a framework of digital documentation tools to understand the economic reasoning behind those businesses.

Author : OECD
Publisher : OECD Publishing
Page : 190 pages
File Size : 21,54 MB
Release : 2015-10-05
Category :
ISBN : 9264241248

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Addressing base erosion and profit shifting (BEPS) is a key priority of governments. In 2013, OECD and G20 countries, working together on an equal footing, adopted a 15-point Action Plan to address BEPS. This publication is the final report for Actions 8-10.

Author : Raffaele Petruzzi
Publisher : Linde Verlag GmbH
Page : 572 pages
File Size : 35,93 MB
Release : 2019-09-02
Category : Law
ISBN : 3709410371

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Value Creation and its effects on Transfer Pricing and tax law Emerging from the OECD/G20 BEPS Project, a new, somewhat fuzzy notion of Value Creation came to permeate not only Transfer Pricing language but also wider allocation rules and anti-abuse provisions in international tax law. The notion of ‘Value Creation’ reframes the interpretation and application of the Arm’s Length Principle (ALP) that is embedded in Articles 7 and 9 of the OECD Model Convention. This new Value Creation notion and approach assist in understanding key enterprise functions while different industry sectors manifest these concepts in various ways. Situating such notions and this approach within the law of tax treaties and analyzing terms of the OECD Transfer Pricing Guidelines alongside their factual context is the aim of this book. Here, law students address Transfer Pricing and Value Creation in sectors as varied as commodities trade, automotive, consumer products, food and beverages, pharmaceutical and life sciences, telecommunications, and the key topic of value creation in a digitalized economy. Our LL.M. students were required to address issues not explored in legal research and to discuss factual topics relevant for Transfer Pricing. All students focused on topics that are new to the international tax debate that keep evolving and on factual matters that often escape legal research.

Author : OECD
Publisher : Org. for Economic Cooperation & Development
Page : 186 pages
File Size : 46,74 MB
Release : 2015-10-19
Category :
ISBN : 9789264241237

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The report contains revisions to the OECD Transfer Pricing Guidelines to align transfer pricing outcomes with value creation. The revised guidance focuses on the following key areas: transfer pricing issues relating to transactions involving intangibles; contractual arrangements, including the contractual allocation of risks and corresponding profits, which are not supported by the activities actually carried out; the level of return to funding provided by a capital-rich MNE group member, where that return does not correspond to the level of activity undertaken by the funding company; and other high-risk areas. The report also sets out follow-up work to be carried out on the transactional profit split method which will lead to detailed guidance on the ways in which this method can appropriately be applied to further align transfer pricing outcomes with value creation.

Author : Victor S. Calijuri
Publisher :
Page : 0 pages
File Size : 49,56 MB
Release : 2023
Category :
ISBN :

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Data steers the digitalized economy. The transformation of data into valuable information is somewhat comparable with traditional research and development activities and has become one of the most valuable intangibles for many companies. The knowledge discovery method in databases, known as “data mining”, needs to be studied conceptually to demonstrate that the arm's length principle cannot effectively allocate profits to jurisdictions. Nevertheless, much effort has been put into OECD's Pillar One, but is it indeed ready to deal with the big data economy? To answer this question, the author briefly introduces the evolution of transfer pricing and presents that the dichotomy between the arm's length principle comparability completeness and the formulaic apportionment simplicity were merged to create a more robust system to tackle the challenges of the digitalization and lack of physical presence. In a data-driven economy, it is essential to understand the steps involved in the value creation of data. The purpose of the present study is to meticulously delineate the value chain of big data, including collection, processing and analysis and monetization of the data. In conclusion, the author suggests a framework that effectively allocates profits in accordance with the value creation of data.