BorderCrossings ... with Ernst & Young's transfer pricing and tax professionals
Selecting a defensible transfer pricing method: Is your CUP half full or half empty?
Transfer pricing touches nearly every area of your multinational operations, making it one of your key tax challenges and concerns. Increasingly well-staffed tax authorities are applying more sophisticated and sweeping transfer pricing tools, placing greater demands on you to document and defend your transfer pricing in more and more countries. To help you stay informed and able to adopt a more proactive stance in developing and defending your transfer pricing policies and practices, Ernst & Young is pleased to bring you this eleventh installment of BorderCrossings – our monthly webcast series devoted to transfer pricing and related tax issues.
Selecting a defensible transfer pricing method: Is your CUP half full or half empty?
When the OECD Transfer Pricing Guidelines were updated in 2010, the most significant change from the 1995 Guidelines was the replacement of the hierarchy of methods (ranking traditional transaction methods higher than transactional profit methods) with the principle of the most appropriate method to the circumstances of the case. Significant recent transfer pricing litigation in Canada and the US has underlined the importance, risks and challenges associated with selection of the appropriate transfer pricing method to both taxpayers and tax authorities alike. The Alberta Printed Circuits decision in Canada, for example, stressed the importance of addressing the availability of comparable uncontrolled prices (CUPs), both internal and external, before adopting an alternative method. In Veritas in the US, the court determined that the comparable uncontrolled transaction (CUT) method was the most appropriate method to value an intellectual property transfer despite the IRS’s frequent position that it is too unreliable compared to other available methods and should be rejected under the US "best method rule."
This episode of BorderCrossings focuses on considerations to use when selecting a transfer pricing method and when defending it at audit, appeals or litigation. The speakers will address the following issues:
- Interplay of domestic legislation with the OECD transfer pricing guidelines in Canada and the US
- Implications of recent Canadian and US jurisprudence in selecting a transfer pricing method
- Practical guidance in selecting, implementing, supporting and defending a transfer pricing method
During this live, interactive webcast, you will have the opportunity to ask questions through the website and the panelists will answer as many of your questions as time permits.
This program will be of interest to vice presidents/directors of tax/international tax/transfer pricing, directors of finance, CFOs, international tax managers and tax accountants looking for the latest practical information and planning ideas to support their global business initiatives. We hope you will be able to join us.
Featured panelists
Stephen Meadows, Ernst & Young LLP (US), Transfer Pricing
Daniel Sandler, Couzin Taylor LLP (Canada)
Kenneth P. Christman Jr., Ernst & Young LLP (US), Transfer Pricing
Moderator
Fred O’Riordan, Ernst & Young LLP (Canada), National Advisor, Tax Services
Save the dates for upcoming BorderCrossings webcasts:
1:00–2:15 p.m. ET New York/Toronto; 10:00–11:15 a.m. PT Los Angeles/Vancouver
- Thursday, 23 February 2012
- Thursday, 29 March 2012