Transfer Pricing Challenges in the Digital Economy - Part 2: A Case Study of the Internet of Things

Tax Management International Journal, 2019

12 Pages Posted: 9 Jul 2019

See all articles by Niraja Srinivasan

Niraja Srinivasan

Dell Technologies

Lorraine Eden

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

Srini Lalapet

Dell Inc.

Date Written: June 30, 2019

Abstract

The OECD's BEPS project 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 Niraja Srinivasan and Srini Lalapet of Dell Technologies and Lorraine Eden of Texas A&M illustrate the complexities and challenges posed by digital business models. The first article explored the digital economy and the OECD's work on BEPS Action Item 1 (taxing in the digital economy). This second article 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, taxation, OECD, BEPS

JEL Classification: F23, H26, H25, K34, L11, 033

Suggested Citation

Srinivasan, Niraja and Eden, Lorraine and Lalapet, Srini, Transfer Pricing Challenges in the Digital Economy - Part 2: A Case Study of the Internet of Things (June 30, 2019). Tax Management International Journal, 2019. Available at SSRN: https://ssrn.com/abstract=3412555

Niraja Srinivasan

Dell Technologies ( email )

1 Dell Way
Round Rock, TX 78682
United States

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)

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
111
Abstract Views
328
rank
250,465
PlumX Metrics