Transactions involving intellectual property play an increasingly significant
role in economic activity at every level from global to local, with particular
challenges for taxation and revenue authorities. Moreover, the manifold
complexities associated with identifying, valuing and transferring intangibles
make this an issue requiring a creative review of existing transfer pricing
methodologies and techniques. In this ground-breaking new study, Michelle
Markham offers an in-depth examination of attitudes at the forefront of this
rapidly evolving area of taxation law, focusing her work on a comparative
analysis of the US, OECD, and Australian perspectives on the transfer pricing
of intangible assets.
The Transfer Pricing of Intangibles not only highlights
the current problems encountered in inter-affiliate transactions of intangible
property, but also attempts to offer a variety of solutions to these problems.
Among the issues explored are the following:
how the tax treatment of intangible in the context of transfer pricing has
become a major international tax concern;
definitional issues which are vital to an understanding of transfer pricing;
application of the arm's length principle to intangible asset transactions;
determination of legal and economic ownership of group intangible assets;
intangible asset valuation and transfer;
transfer pricing methodologies;
global formulary apportionment;
transfer pricing documentation requirements;
penalties for non-compliance;
resolution of transfer pricing disputes; and,
advance pricing agreements
Revenue authorities, multinational enterprise executives, and tax
practitioners around the world will greatly appreciate the recommendations and
solutions proposed in this knowledgeable and thoughtful book. Its acute sense
of the opportunities and pitfalls of an ever-more-complex area of economic
activity place it in a category of its own, of inestimable benefit to
Contents: Preface. Acknowledgments. Table of Cases. Table of Statutes.
Summary of Abbreviations. 1. Introduction. 2. Transfer Pricing:
Definitional Issues. 3. Achieving an Arm's Length Analysis of
Intangibles. 4. A Consideration of the Transfer Pricing Methodologies
Utilised in Determining an Arm's Length Consideration for Intangible Property.
5. The Alternative to Arm's Length Methodologies: Global Formulary
Apportionment. 6.Transfer Pricing Compliance: Documentation, Penalties
and Other Related Issues. 7. Administrative Approaches to the
Resolution of Transfer Pricing Disputes. 8. Advance Pricing Agreements.
9. Conclusion and Recommendations. Bibliography.