Transfer Pricing Challenges in the Digital Economy - Part 1: Hic Sunt Dracones?

Eden, Lorraine, Niraja Srinivasan and Srini Lalapet. 2019. Transfer Pricing Challenges in the Digital Economy: Hic Sunt Dracones? Tax Management International Journal, 48 (June 14): 1-5.

5 Pages Posted: 9 Jul 2019 Last revised: 9 Oct 2019

See all articles by Lorraine Eden

Lorraine Eden

Texas A&M University - Department of Management ; School of Law, Texas A&M University

Niraja Srinivasan

Dell Technologies

Srini Lalapet

Dell Inc.

Date Written: June 30, 2019

Abstract

"There may be dragons" in the OECD's BEPS project, which mandated that transfer pricing outcomes under the arm's­ length standard should be aligned with value creation. In the digital economy, new business models are challenging transfer pricing practitioners on how best to apply the value creation approach. In a two-part series Lorraine Eden of Texas A&M and Niraja Srinivasan and Srini Lalapet of Dell Technologies illustrate the complexity of digital business models and the challenges they create for conducting transfer pricing analysis. Part 1 explores the digital economy and the OECD's work on BEPS Action Item 1 (taxing in the digital economy). Part 2 is a case study of the Internet of Things (loT}, which builds and uses a stylized transfer pricing analysis to explore the transfer pricing challenges posed by an loT ecosystem.

Note: Reproduced with permission from Bloomberg Tax (June 14, 2019). Copyright 2019 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com.

Keywords: transfer pricing, digital economy, internet of things, OECD, BEPS

JEL Classification: f23, h26, h25, k34, l11, 033

Suggested Citation

Eden, Lorraine and Srinivasan, Niraja and Lalapet, Srini, Transfer Pricing Challenges in the Digital Economy - Part 1: Hic Sunt Dracones? (June 30, 2019). Eden, Lorraine, Niraja Srinivasan and Srini Lalapet. 2019. Transfer Pricing Challenges in the Digital Economy: Hic Sunt Dracones? Tax Management International Journal, 48 (June 14): 1-5. . Available at SSRN: https://ssrn.com/abstract=3412546

Lorraine Eden (Contact Author)

Texas A&M University - Department of Management ( email )

415D Wehner Bldg, TAMU 4221
College Station, TX 77843-4221
United States
979-845-4851 (Phone)
979-845-9641 (Fax)

HOME PAGE: http://mays.tamu.edu/mgmt/

School of Law, Texas A&M University ( email )

1515 Commerce St.
Fort Worth, TX 76102
United States
9797773489 (Phone)

Niraja Srinivasan

Dell Technologies ( email )

1 Dell Way
Round Rock, TX 78682
United States

Srini Lalapet

Dell Inc. ( email )

1 Dell Way
Round Rock, TX 78682
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
158
Abstract Views
423
rank
188,671
PlumX Metrics