Susan Fickling-Munge, Managing Director, and Sarah Stauner, Vice President, in Duff & Phelps' Transfer Pricing practice, authored an article in Bloomberg Tax titled, “Mitigating Risk on Hard to Value Intangibles”. The OECD’s BEPS action plan mandated the development of transfer pricing rules for “hard to value intangibles” (HTVI). This article provides a brief background on the OECD’s and various tax authorities’ embrace of ex-post considerations, discusses an example of how taxpayers are managing their use of hindsight and some options that may be employed when entering into a transaction involving HTVI.
The OECD first introduced the term “hard to value intangibles” in 2013 as part of its ongoing efforts to revise transfer pricing guidance related to intangibles with a definition provided in paragraph 6.189 of the OECD Guidelines. Action 8 of the OECD’s BEPS action plan mandated the development of transfer pricing rules for transfers of HTVI. In June 2018, the OECD released the OECD Guidance for Tax Administrations on the Application of the Approach for HTVI Intangibles.
Read the full article here.
