OECD’s BEPS: What the Transfer Pricing Landscape Would Look Like in 2018
The Organization for Economic Cooperation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) project combats multinational enterprises' abusive tax activities by reducing opportunities for tax avoidance. Earlier this year, the OECD released its "2017 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration" which reflects the new transfer pricing approaches resulting from the 2015 BEPS plan final reports. The modifications are expected to take into effect in 2018. An additional guidance was released on July 18th to address issues regarding the implementation of country-by-country (CbC) reporting (BEPS Action 13).
Multinational corporations need to keep themselves abreast of these changes since countries with transfer pricing laws follow the OECD guidelines in most cases. They should start considering the guidelines' impact on their business and make necessary changes to their structures.
In this LIVE Webcast, a panel of distinguished professionals and thought leaders brought together by The Knowledge Group will help multinationals better understand the important aspects of this significant topic. They will provide an in-depth discussion of the OECD’s updated Guidelines and its potential effects on multinationals. Speakers will highlight best compliance practices and will also offer helpful insights in avoiding common pitfalls and risk issues.
Key topics include:
- The 2017 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration
- Significant Changes
- Effects of the Revised Guidelines on Multinationals
- Best Compliance Practices
- Addressing Potential Risk Issues
- Outlook for 2018
Jon Jenni, Director of Transfer Pricing
Plante Moran PLLC
- Governments believe they now have a consensus on TP principals, but the consensus may be illusory.
- IRS believes BEPS codifies what is already in 482.
- Some emerging market governments may believe all have agreed to something like formulary apportionment.
- Expect more tax conflicts.
- Some governments see BEPS as a chance to grab big chunks of new income, but there are not so many slices of unclaimed revenue pie.
- Expect more tax conflicts.
- Country-by-country reporting will lead to conflict, and to attempts at formulary apportionment.
- Expect more tax conflicts.
- Tax planning without substance is dying; tax-based supply chain planning is the only game in town.
- This may align well with MNC’s business needs anyway.
- Headquarter entities need to attend more to transactions between subsidiaries than ever before; CbCR and master file reporting will be both a tool and a challenge for this.
- US headquarter companies need to address master file requirements, even though the IRS is silent on this point.
James Guadiana, Partner
- Describe existing TP rules in US and certain EU countries and BEPS Action items and differences;
- How will countries react-will BEPS just be an overlay to the existing rules in some countries, or will the existing rules be replaced by BEPS;
- Planning opportunities with substance based rules in the technology development and marketing.
Justin Kuczmarski, MBA, CPA, CVA, CIRA, ABV, President
NAV Valuation & Advisory LLC
- Topic 1 – Risk Allocation
- OECD’s renewed focus on risk assignment
- OECD’s 6-Step Process for analyzing risk put for in 2017 Update
- 4th Step is controversial: contractual risk allocation is not so cut and dry
- Confusion on risk allocation could lead to profit-splitting and inadvertent double taxation
- Topic 2 – Intangible Valuation and Value Creation
- Always a controversial area and source of profit shifting, intangibles are now set for renewed scrutiny under the “who benefits most” approach rather than legal ownership.
- IRS Continues to Attack Intangibles and Loses: Amazon Tax Court Case from Early 2017
- 2017 OECE Update is very keen on advocating arm’s-length principle for transfer pricing of intangibles
- Current Events 2017 – Topic 1: Digital Companies and Complexity of International Taxation
- 10/4/2017 – Luxembourg must now collect €250 million ($293 million) plus interest from Amazon.
- Google Cases, Apple
- Current Events 2017 – Topic 2: IRS Form 8975 and More Audits from BEPS Coming
- Most Respondents Believe Audits will increase and IRS Form 8975 coming by year-end, will drive this change
- Current Events 2017 – Topic 3: TBD
Who Should Attend:
- Taxation Lawyers
- International Tax Specialists and Managers
- Chief Executive Officers
- Finance Specialists
- Financial Risk Managers
- Chief Finance Executives
- Tax Directors
- Transfer Pricing Personnel
- Multinational Corporations
Mr. Justin Kuczmarski, MBA, CPA, CVA, CIRA, ABV, CFF, is the President of NAV Valuation & Advisory LLC (“NAV”). Prior to founding NAV, Mr. Kuczmarski served as a NYC Practice Leader in Financial Advisory Services for a top 10 accounting and advisory firm. He also has senior M&A investment banking experience as a Valuation Practice Leader for a leading M&A boutique bank.
In 2016, Mr. Kuczmarski was a recipient of the NACVA 40 Under 40 from the nation's leading valuation association, the National Association of Certified Valuation Analysts (NACVA). Mr. Kuczmarski is the sole author of the 300-page guidebook entitled The Executive’s Guide to Business Valuation: Essentials for Advisors and Business Owners.
Mr. Kuczmarski received a B.A. in Politics from Princeton University. He also received an dual MBA in both Finance and Professional Accountancy from Fordham University's Gabelli School of Business in both Finance and Professional Accountancy, where attended on an academic fellowship in both departments.
Mr. Justin Kuczmarski, MBA, CPA, CVA, CIRA, ABV, CFF, is the President of NAV Valuation & Advisory LLC (“NAV”). Prior …
As the director of transfer pricing at Plante Moran, Jon advises multinational businesses on international transactions and specializes in a wide range of transfer pricing issues, including global transfer pricing policies, audit defense and controversy, setting up cost sharing arrangements, and other economic analysis.
He works with foreign-headquartered businesses with U.S. subsidiaries or parent companies as well as U.S. companies with affiliates in other countries in the automotive, software, services, finance, and real estate industries.
Jon’s clients rely on him to successfully negotiate with government agencies on their behalf. With deep experience in economic analysis of international transactions, he’s able to effectively explain complex concepts and issues to non-specialists. Having lived almost half his life abroad, Jon is uniquely positioned to offer clients a global perspective on proactively managing and optimizing their transfer pricing and minimizing potential exposure.
As the director of transfer pricing at Plante Moran, Jon advises multinational businesses on international transactions and specializes in a …
Jim Guadiana has extensive experience as tax advisor to a number of public corporations, including corporations listed on various non-U.S. stock exchanges. Jim has served as advisor to public and privately-held multinational companies with regard to their operations and investments in the United States. In recent years, he has served as U.S. tax counsel to one of the world’s largest companies in its pre-IPO reorganization and IPO, as advisor to both developers and investors in connection with U.S. real estate development projects, providing both pre- and post-formation tax planning, and structuring investment vehicles to optimize after-tax returns for foreign investors.
Jim has advised clients on the establishment of transfer pricing policies, assisted clients in implementing cost-sharing arrangements, and has advised clients on the tax aspects of transfers of proprietary technology (including patents). He is often called on to structure multinational executive compensation programs to achieve optimum tax benefits for employers and employees in multiple jurisdictions, and has advised multinational families with regard to their global investments, business activities, and U.S. tax compliance requirements. Jim also has represented clients before U.S. tax agencies and U.S. tax courts.
Jim has presented at various conferences on tax-related matters, and is known domestically and internationally as an expert in recognizing and resolving novel and complex tax issues in domestic and cross-border investments in myriad fields.
Jim Guadiana has extensive experience as tax advisor to a number of public corporations, including corporations listed on various non-U.S. …
Print and review course materials
Method Of Presentation:
Experience in tax/transfer pricing law
NASBA Field of Study:
Taxes - Technical
NY Category of CLE Credit:
Areas of Professional Practice
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About Plante Moran PLLC
Plante Moran is among the nation’s largest certified public accounting and business advisory firms, and has helped clients address complex challenges and opportunities for 90+ years. Transfer pricing is an increasing area of focus for tax authorities around the globe, with complex rules enforced in virtually every country. Plante Moran’s advisors have extensive foreign market experience to help you ensure compliance, minimize risk, and optimize your tax position. The firm’s experts can provide fast, accurate assistance with contemporaneous documentation studies, planning analysis, transfer pricing design, advanced pricing agreements, and more.
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