{"id":14923,"date":"2012-04-03T20:02:18","date_gmt":"2012-04-03T19:02:18","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=14923"},"modified":"2012-04-03T20:02:18","modified_gmt":"2012-04-03T19:02:18","slug":"more-on-india-transfer-pricing-developing-countries-and-the-alternatives","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2012\/04\/03\/more-on-india-transfer-pricing-developing-countries-and-the-alternatives\/","title":{"rendered":"More on India, transfer pricing, developing countries and the alternatives"},"content":{"rendered":"

For those wanting more information on India's\u00a0challenge\u00a0to the OECD on international taxation issues might I recommend this article in the UK based Tax Journal?<\/a><\/p>\n

I am pleased to note that\u00a0Tax Justice Network's US based transfer pricing expert, David Spencer is quoted, saying:<\/p>\n

\n

The members of the UN tax committee from China and Brazil \u2018generally supported\u2019 the Indian government\u2019s position on this issue, said David Spencer, Senior Adviser to the Tax Justice Network.<\/p>\n

The TJN has called for an \u2018objective analysis\u2019 of transfer pricing issues in the context of developing countries, arguing that \u2018the OECD\u2019s theory of the arm\u2019s-length principle no longer applies to multinational enterprises which are highly integrated\u2019 and that \u2018comparables in many if not most cases cannot be found\u2019.<\/p>\n

The group said a draft Transfer Pricing Manual being prepared by a subcommittee of the UN tax committee referred to an \u2018information deficiency problem\u2019.<\/p>\n

This was, the TJN said, \u2018the problem faced by developing countries in getting sufficient information, including comparables, about the activities of multinational corporations\u2019.<\/p>\n

The\u00a0TJN reiterated its support for country-by-country reporting, \u2018whether countries adopt the OECD\u2019s Transfer Pricing Guidelines, or a modified arm\u2019s-length principle, formulary apportionment, or a mixed system\u2019.<\/p><\/blockquote>\n

I\u00a0wholeheartedly\u00a0agree with David. I also think the response of the OECD, which has been to invite the UN to act as an observer of its work is entirely\u00a0inadequate.<\/p>\n

It has taken some\u00a0time\u00a0for this debate to open up. I suspect now it is there will be no stopping it: the\u00a0system\u00a0prejudices\u00a0the BRICs states and developing countries and they're not going to put up with it for much longer.<\/p>\n

NB:\u00a0Tax Justice Network and the Finnish\u00a0government\u00a0are holding a conference on\u00a0this\u00a0issue in Helsinki this\u00a0June.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

For those wanting more information on India’s\u00a0challenge\u00a0to the OECD on international taxation issues might I recommend this article in the UK based Tax Journal? I
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,51],"tags":[],"class_list":["post-14923","post","type-post","status-publish","format-standard","hentry","category-tax-justice-network","category-transfer-pricing"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/14923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=14923"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/14923\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=14923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=14923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=14923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}