Transfer pricing 1300-OG-TP-KPP

Transfer Pricing
15 hours (1 hour = 45 minutes)

I. Introduction to Transfer Pricing

1) What is it all about?
2) Among legal concepts of tax avoidance, tax evasion, (aggressive) tax planning and economic reality (transfer pricing is unavoidable)
3) Sources of law:
a) double taxation conventions based on the Model OECD Tax Convention
b) domestic law (including an overview of Polish rules)
c) soft-law:
i) Commentary to the Model OECD Tax Convention
ii) OECD Transfer Pricing Guidelines
iii) Relevance of soft-law in daily practice
iv) Constitutional issues (Poland)
d) foreign case law?
e) other measures
4) Overview of Article 9 of the Model OECD Tax Convention
5) Alternative: formulary apportionment:
a) past experience: California
b) plans for the future: (C)CCTB in the European Union
c) comparison of transfer pricing and formulary apportionment
6) Case study

II. Associated Enterprises and Methods

1) Reminder (meeting no. 1)
2) Arm’s length principle – conditions of application
3) Main economic concepts surrounding the arm’s length principle
4) Overview of different value chain structures
5) Definition of associated enterprises
6) Comparability analysis requirements
7) Non recognition of intercompany transactions
8) Traditional methods:
a) Comparable uncontrolled price method
b) Resale price method
c) Cost plus method
9) Deficiencies of traditional methods
10) Case study

III. Methods

1) Remider (meetings no. 1 and 2)
2) Transactional profit methods:
a) Transactional net margin method
b) Transactional profit split method
c) Use of a corroborative method as sanity check
3) Selected intercompany transactions
a) Transfer of commodities
b) Provision of services
c) License of intangibles
d) Financial transactions
4) Business restructuring
5) Case study

Elective workshop: structuring a transfer pricing policy for selected intercompany transactions (analysis of the transaction under review, functional analysis, method selection)

IV. Administrative Issues and Dispute Resolution Mechanisms

1) Reminder (meetings no. 1-3)
2) TP Documentation requirements
3) Lack of data required for comparability analysis
4) New trends in audits: joint audits, simultaneous examination, ICAP program
5) Ex ante tools to avoid economic double taxation: APA and BAPA
6) Ex post tools to relief economic double taxation: MAP under Double Tax Agreements/EU Arbitration Convention/EU Directive
7) Case study

V. Recent Developments and Summary

1) Reminder (meeting no. 1-4)
2) TP in light of BEPS substance requirement
3) Current issues such as the arm’s length under the Covid-19 crisis
4) Current issues such as digital taxation in light of Pillar 1
5) Other current issues
6) Case study

Elective workshop: the US approach to transfer pricing