Danny Beeton and Andrew Cousins Published in Bloomberg BNAs Transfer Pricing Forum December 2016

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Danny Beeton, Managing Director and Andrew Cousins, Director, in Duff & Phelps' European Transfer Pricing practice, provide perspectives to detailed practical guidance on technical Transfer Pricing issues. For this December 2016 issue, topics covered included:

1. The main sources of transfer pricing controversy - e.g., characterization, choice of method, choice of comparables, comparability adjustments, related party agreements and re-characterization, operation of the transfer pricing policies
2. Transfer pricing controversies: do they arise more often in certain businesses or industries than in others
3. Recent or proposed changes in national statute, case law or guidance that is generating or expected to generate new transfer pricing controversy
4. The best ways of avoiding transfer pricing controversy - e.g., doing more thorough functional analysis, benchmarking, making comparability adjustments, ensuring that there are detailed transfer pricing agreements or other documentation, or formal or informal agreement with the tax administration
5. Options for achieving a successful outcome of controversy - e.g., settlement through negotiation, alternative dispute resolution, litigation, invoking MAP at an early state, APA with a roll-back
6. How greater certainty can be achieved about the future treatment of transfer pricing arrangements - e.g., APAs, improving the documentation, changing the policies, improving the ways the policies are operated