Applying the Arms Length Principle to Intra Group Financial Transactions
� A Reference Guide
Författare:Danon Robert , Chand Vikram , Maisto Guglielmo , Pletz Amanda , red.
Titel:Applying the Arms Length Principle to Intra Group Financial Transactions � A Reference Guide
Anmärkning:This is a Print On Demand Title.
Förlag:Kluwer Law International
Typ av verk:Samlingsverk
Ämnesord:Skatterätt , Internationell rätt

Pris: 2030 SEK exkl. moms


Applying the Arm’s Length Principle to Intra-group Financial Transactions is a unique compendium comprising contributions by more than 50 leading global transfer pricing and international tax experts from law firms, multinational enterprises, academia, and tax administrations. This nonpareil book furnishes unparalleled insights into the application of the Arm’s Length Principle to different types of financial transactions, the application of anti-avoidance rules to various intra-group financial arrangements as well as the business value creation process and the dispute management landscape that underlie intra-group financial transactions.

What’s in this book:

Delving deep into the legislation and market developments that fuel the diverse range of financing options available to market participants – and replete with pragmatic examples and case studies that cover the legal and economic considerations arising when analysing intra-group finance – the contributors examine the following issues and topics:

- national anti-abuse rules applicable to financial transactions;

- tax treaty issues;

- role of credit ratings and impact of implicit support;

- loans, cash pooling, financial guarantees;

- transfer pricing aspects of performance guarantees;

- ‘mezzanine’ financing;

- considerations for crypto financing;

- impact of crises situations such as COVID-19;

- how treasury operations can be structured in a group and the decision-making process involved;

- how hedges offset or mitigate risks;

- how to apply the arm’s length principle to factoring and captive insurance transactions;

- comparability analysis for various transactions;

- special considerations for transactions carried out by a permanent establishment;

- EU state aid and its interaction with transfer pricing rules;

- dispute prevention and resolution tools under the OECD, UN, and EU frameworks; and

- developing countries’ perspectives, focusing on Brazil, India, and South Africa.

How this will help you:

Bearing in mind the challenges facing taxpayers and tax authorities alike, this book will prove an inestimably valuable reference guide to support tax practitioners, tax administrations, and tax scholars in developing standards and policies in dealing with intra-group financing issues.

Table Of Contents


List of Figures

List of Tables

List of Abbreviations

PART I Introduction: Applying the ALP to Intra-group Financial Transactions

CHAPTER 1 Introduction
Vikram Chand & Amanda Pletz

PART II The Interaction Between Selected Anti-Avoidance Rules and Transfer Pricing Rules with a Focus on Financing

CHAPTER 2 Do Tax Treaties Restrict Adjustments Made to Related Party Loans When the Tax Administration Applies the Sham Doctrine (Including Court-Based Rules) or Domestic GAARs?
Vikram Chand & Craig Elliffe

CHAPTER 3 The Interaction Between CFC Rules and TP Rules with a Focus on Financing
Aurelio Massimiano & Kinha Romanovska

CHAPTER 4 The Interaction of Interest Limitation Rules, Thin Cap Rules, ALP-Based Rules and the Pillar Two UTPR: What Comes First?
Chloe Burnett SC

CHAPTER 5 Critical Assessment of Interest Limitation Rules: Global Perspective
Sandra Martinho Fernandes

PART III ALP Framework for Financial Transactions: A Transactional Approach

A Credit Ratings/Default Risk: Considerations

CHAPTER 6 Shadow Credit Ratings for Intercompany Transactions
Georg Dettmann & Diana Kabir

CHAPTER 7 The Issue of Implicit Support and Implications for a Transfer Pricing Analysis
Andrea Lee, Amanda Pletz & Ronald Bernstein

CHAPTER 8 Revisiting the GE Case: Key Lessons for the Current Transfer Pricing Landscape
J. Scott Wilkie

B Intercompany Loans

CHAPTER 9 Setting the Arm’s Length Framework for Intercompany Loans
Marta Pankiv

CHAPTER 10 Accurate Delineation of Intercompany Loans
Vikram Chand, Michael Kobetsky & Camille Vilaseca

CHAPTER 11 Options Realistically Available Vis-à-Vis Loans
Andreas Bullen

CHAPTER 12 Data Available to Price Loans with a Focus on Loan and Bond Approach
Thomas Petrakos

CHAPTER 13 Fixed Rate Loan Transactions: A Case Study
Ralph Meghames, Bernardo Danesi, Diana Kabir & Amanda Pletz

CHAPTER 14 Floating Rate Loan Transaction: A Case Study
Stefanie Perrella & Zachary Held

CHAPTER 15 Different Benchmarking Approaches for Convertible Bonds
Serena Picariello

CHAPTER 16 The Use of Other Methods for Loan Benchmarking: A Yield Build-Up Approach and Cost of Funds
Eugene Ng, Gary Lambert & Amanda Pletz

CHAPTER 17 Intercompany Loans for Real Estate Financing: A Case Study
Danny Beeton

CHAPTER 18 Transfer Pricing Considerations for Intercompany Cryptocurrency
Fabian A. Peters, Amanda Pletz & Mark L. Berenblut

CHAPTER 19 The Chevron Case: A Detailed Analysis
Niv Tadmore, Simon Bowden & Benjamin Lancaster

CHAPTER 20 Transfer Pricing Aspects of Loans: Focus on German Federal Tax Court Case Law—A Detailed Analysis
Sven-Eric Bärsch

CHAPTER 21 The Use of Safe Harbours for Intercompany Loans: Lenders’ and Borrowers’ Perspective
Alessandro Turina

CHAPTER 22 The Impact of Crisis Situations Such as COVID-19 on Transfer Pricing of Intercompany Financial Transactions and Comparability Considerations
Vispi T. Patel, Anwesha Bandyopadhyay & Rhea Wadia

CHAPTER 23 Intercompany Agreements Relating to Financial Transactions
Paul Sutton

C Intercompany Financial Guarantees

CHAPTER 24 Setting the Arm’s Length Framework for Financial Guarantees
Marta Pankiv

CHAPTER 25 Accurate Delineation of Financial Guarantees
Natassia Burkhalter-Martinez

CHAPTER 26 Options Realistically Available for Financial Guarantees
Denis Amici

CHAPTER 27 Using the Market Approach to Price Guarantees: A Case Study
Rachit Agarwal

CHAPTER 28 Using the Actuarial Approach to Price Guarantees
Gary Lambert

CHAPTER 29 The Use of CDSs When Pricing Debt Guarantees
Timothy McKenna

D Special Consideration for Performance Guarantees

CHAPTER 30 Transfer Pricing Aspects of Performance Guarantees
Adam Kosmala

E Cash Pooling

CHAPTER 31 Setting the ALP for Cash Pooling
Rani Peffer

CHAPTER 32 Transfer Pricing of Cash-Pooling Transactions in the Post-BEPS Era
Melanie Appuhn-Schneider & Alexander Haller

CHAPTER 33 Options Realistically Available with Respect to Cash-Pooling Transactions
Ulf Andresen

PART IV ALP Framework for Treasury Activities

CHAPTER 34 General Overview of Financing Operations Including Different Types of Structures Used Within an MNE
Alessandro Bucchieri & Benedetta Veneziano

CHAPTER 35 Allocation of Risks and Returns: Critical Issues for Financial Transactions
Andrew Hickman

CHAPTER 36 The Allocation of Risks and Returns to Treasury Entities
Richard Collier & Dan Pybus

CHAPTER 37 Hedging Options in Multinationals
Meindert de Vreeze, Robin Deutsch & Niraja Srinivasan

PART V ALP Framework for Other Types of Activities

A Factoring

CHAPTER 38 Assessing Factoring Transactions Within the Arm’s Length Principle Framework
Immanuel Llinares & Bernardo Danesi

CHAPTER 39 Factoring: Focus on Accurate Delineation
Vikram Chand, Aitor Navarro & Camille Vilaseca

CHAPTER 40 Pricing Factoring Transactions: A Case Study
Emmanuel Llinares & Bernardo Danesi

B Captive Insurance

CHAPTER 41 The Use of Captives and How They Are Normally Organized
Stephen Hawkes

CHAPTER 42 Overview into Captive Structures
Andrea Grainger & Emilia Siravo

CHAPTER 43 Setting the ALP Framework for Captive Insurance
Louise Sykes, Amanda Pletz & Diana Kabir

CHAPTER 44 Accurate Delineation of Captive Insurance Transactions Including Options Realistically Available
Louise Sykes, Vikram Chand, Amanda Pletz & Camille Vilaseca

CHAPTER 45 Transfer Pricing Considerations on Captive (Re)insurance Companies: Overview and Case Studies Using CUP and TNMM
Andrea Grainger & Emilia Siravo

CHAPTER 46 Determining Arm’s Length Premium Rates Using Insurance Approach: A Case Study
Daniel F. Gibson

PART VI Special Considerations for Transactions with Permanent Establishments

CHAPTER 47 Allocation of Profits to a Permanent Establishment with Treasury Activities: General Considerations
Celine Martin

CHAPTER 48 The Recognition of Financial Dealings Between Head Office and Permanent Establishments under the AOA: Focus on External and Internal Dealings
Xaver Ditz

CHAPTER 49 Allocating Financial Assets to a PE and Corresponding Income Using the AOA
Thomas Hug

PART VII The EU Perspective

CHAPTER 50 The Impact of the State Aid Rules on the Transfer Pricing Aspects of Intercompany Loans: An Analysis of the Landmark Ruling of the CJEU in the Fiat Case
Jérôme Monsenego

PART VIII Dispute Resolution under the OECD, UN and EU Framework

CHAPTER 51 MAP and Arbitration for Financial Transactions under the Current Tax Treaty Framework: OECD and UN Perspective
Jonathan Schwarz

CHAPTER 52 Application of the EU Dispute Resolution Mechanisms to Financial Transactions
Guglielmo Maisto

PART IX A Developing Countries Perspective on Financial Transactions: Selected Issues

CHAPTER 53 Transfer Pricing Aspects of Financial Transactions: A South African Perspective
Michael Hewson

CHAPTER 54 Transfer Pricing Aspects of Financial Transactions: An Indian Perspective
Mukesh Butani & Seema Kerijwal

CHAPTER 55 Transfer Pricing Aspects of Financial Transactions: A Brazilian Perspective
Luís Eduardo Schoueri & Daniel Teixeira Prates

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