BEPS Rules Now Officially Part of the OECD Transfer Pricing Guidelines

By Robert Robillard - 20 June 2016

This blogpost originally appeared on rbrt.ca.

The OECD recently indicated:

“On 23 May 2016, the OECD Council approved the amendments to the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (“Transfer Pricing Guidelines”), as set out in the 2015 BEPS Report on Actions 8-10 “Aligning Transfer Pricing Outcomes with Value Creation” and the 2015 BEPS Report on Action 13 “Transfer Pricing Documentation and Country-by-Country Reporting“. These amendments provide further clarity and legal certainty about the status of the BEPS changes to the Transfer Pricing Guidelines, which were endorsed by the Council on 1 October 2015, by the G20 Finance Ministers on 8 October 2015, and by the G20 Leaders on 15-16 November 2015.

[…]

The specific changes introduced in the Transfer Pricing Guidelines by these Reports are as follows:

  • The current provisions of Chapter I, Section D of the Transfer Pricing Guidelines are deleted in their entirety and replaced by new guidance.
  • Paragraphs are added to Chapter II of the Transfer Pricing Guidelines, immediately following paragraph 2.16.
  • A new paragraph is inserted following paragraph 2.9.
  • The current provisions of Chapter V of the Transfer Pricing Guidelines are deleted in their entirety and replaced by new guidance and annexes.
  • The current provisions of Chapter VI of the Transfer Pricing Guidelines and the annex to this Chapter are deleted in their entirety and replaced by new guidance and annex.
  • The current provisions of Chapter VII of the Transfer Pricing Guidelines are deleted in their entirety and replaced by new guidance.
  • The current provisions of Chapter VIII of the Transfer Pricing Guidelines are deleted in their entirety and replaced by new guidance.”

The complete communiqué is available here.

The latest update on BEPS was provided on June 16, 2016. View this update and the OECD presentation here: http://www.oecd.org/tax/tax-talks-webcasts.htm

Among the subjects covered, a Concept Note titled The Platform for Collaboration on Tax was released in April 2016 by the IMF, UN, World Bank and the OECD. It is available here: https://www.imf.org/external/np/sec/pr/2016/pdf/pr16176.pdf

The upcoming 8 toolkits for “tax collaboration” stem from this initiative (see slide 21).

All this to reiterate that BEPS is far from over…

The library on BEPS and Transfer Pricing is available here.

Robert Robillard, Ph.D., CPA, CGA, Adm.A., MBA, M.Sc. Econ., M.A.P.
Senior Partner, RBRT Inc.
514-742-8086; robertrobillard “at” rbrt.ca
www.rbrt.ca

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